The states with no income tax
The federal government sees those distributions from pensions, 401(k)s and traditional IRAs as a form of income. In fact, according to the federal government, there’s no difference between those and the income you get from work.
Fortunately, eight states don’t have any kind of income tax, which means that their retirement benefits, such as Social Security, are untouched by the state taxman. These eight states are Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming.
There’s also a ninth state, New Hampshire, but the difference with the latter one is that it has tax interest and dividends, which the majority of retirees still depend on for their retirement income.
Why can’t Virginia be one of the; NO TAX STATE!!! Is it because it’s so close to D.C.???
Well arkansas and irs taxed the hell out of my 401k…that’s a dmn shame we think that we are saving up for retirement and have nothing more when we retire plus social security don’t want to give us nothing want us too work until we are 70 to get full money we have worked for all our lives 🙄😬😬the government is a joke but the rich gets everything and poor gets nothing….and they do all the damn work…whyyyyy
We moved from Massachusetts to North Carolina about 20 years ago. NC taxed my husbands pension. I had been on disability in MA, I lost it when I moved to NC. I now live in PA and pension is not taxed but I never got my disability back. We lost a lot of money. NO state should tax someone’s pension or SS or disability.
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Arizona doesn’t tax military pensions