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7 States That Don’t Tax Your Pension, 401(k), Social Security, and More

February 22, 2023 · Personal Finance
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Minnesota

Minnesota has the same thresholds as the federal government, to determine just how much should the state tax a retiree’s Social Security benefits. Besides, those who owe taxes on their benefits should take advantage of Minnesota’s Social Security Subtraction, to secure at least a partial deduction.

For instance, in 2021, single filers and couples who filed together were able to exempt as much as $4,130 and $5,290 from their federally taxable benefits taken from their Minnesota income.

It’s also worth mentioning that this doesn’t apply to residents who are in a higher income bracket. Single filers and couples with AGIs of a minimum of $62,710 and $80,270 only qualify for a partial exemption; while those with AGIs above $83,360 and $106,720 don’t qualify.

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28 comments on “7 States That Don’t Tax Your Pension, 401(k), Social Security, and More”

  1. Thomas says:
    March 5, 2026 at 1:38 am

    How many people live too be 100 and if you do you’re too dam old.

    Reply
  2. Sean Stites says:
    March 2, 2026 at 11:16 pm

    I never saw the 7 states listed anywhere in this article rife with ads & other distractions!

    Reply
  3. James Gong says:
    March 29, 2025 at 1:06 am

    No it is that the politicians and lobbyist make so much income they think all the lower level job people include retiree have the same amount of disposable income so they take care of their life style and the hell with those who pay their salaries. So get rid of the many lobbyist and their pushing agenda paying politicians and the politicians might just working for the tax payer again. know what a dollar will by when you only have a dollar.

    Reply
  4. Roger Stoll says:
    March 25, 2025 at 8:19 pm

    Florida also has no state income tax

    Reply
  5. Juan M says:
    January 29, 2025 at 5:55 pm

    Democrats love to TAX productive Americans so they can BUY the votes of unproductive people with handouts. The Hasidic n NY have 8 and more children and SCAM every government program by not being married by the state (only married by their rabbi) so they can claim to be ‘unwed mothers’. The whore politicians say nothing because they want their ‘block vote’.

    Reply
  6. Bill-3 says:
    January 10, 2025 at 3:29 am

    You have an omission: Rhode Island DOES NOT TAX Miltary pensions.

    Reply
  7. Saroeun lee says:
    November 12, 2024 at 6:50 pm

    Where are your 7 states ?

    Reply
  8. Norman says:
    November 11, 2024 at 10:13 pm

    New Mexico exempts $35K of military retirement benefits from state income tax. Also, any portion of Social Security benefits taxed by the federal government, is exempt from state income tax. If you live to be 100years old, you are also exempt from all state income taxes!

    Reply
  9. Andrea says:
    October 6, 2024 at 6:22 pm

    Three states with extremely cold temperatures and ice to slip and fall on.
    Want to shovel snow at 70? Want to slip on ice at that age or older?
    Nope.

    Reply
  10. James says:
    October 6, 2024 at 5:05 pm

    Total BS

    Reply
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