There are also three other states with income taxes that give retirees a well-deserved break on pensions and retirement plan distributions. For instance, Illinois has a 4.95 percent flat income tax, and it won’t tax distributions from the majority of pensions and 401(k) plans, but also IRAs.
Also, Mississippi’s maximum state tax is 5%, and it doesn’t tax any retirement distribution, while Pennsylvania has a 3.07 percent flat tax, and doesn’t tax retirement plans at all.
When it comes to other states, it seems that the next best thing is carving out a couple of exemptions for retirement income. For instance, besides those nine states that don’t have any income tax, it seems that no less than 21 states don’t apply any kind of tax on military pay.
These states are Alabama, Arkansas, Connecticut, Hawaii (who would’ve thought?), Illinois, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota (everyone expected this from Minnesota!), Mississippi, Missouri, New Jersey, and New York (as expensive as this state is, the least they could do was to exempt military tax), North Dakota, Ohio, Pennsylvania, but also West Virginia, and Wisconsin.
Why can’t Virginia be one of the; NO TAX STATE!!! Is it because it’s so close to D.C.???
NC is right there with VA, PLUS the highest gas tax in the east. 😡
Bull’s Eye
They cant get there PORK if they dont tax and they HAVE to make there pork Dems love pork
Because your elected officials are more intelligent than the riff-raff, who elected them, on how to spend your money that you do not deserve anyway.
You can get tax exempt if you send up packet. IRS initiative 656 I believe. Don’t quote me
no, it’s because you chose the wrong state to live in. I have 3 govt pensions, all 3 are tax free, I can live in any state and pay no taxes.
Too many Democrats in Virginia….Democcrrats love to tax working people to buy votes from freeloaders.
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.
Get rid of ads
Arizona doesn’t tax military pensions
what about Kansas and Arkansas ?
D0es Colorado charge Income Tax fees?
Not enough is done to help retirees. The federal goverment and states have to help us. Most countries help retirees. It is rediculous and AARP should be working on this !
Pensions and Social Security should NEVER be taxed. They have been taxed before they became your retirement. What evil jerk does this? We pay taxes all our working lives and when we retire, our savings and Social Security should never be touched by taxes. Social Security IS a tax we pay, it’s already been taxed.
Where is the list??
One has to wade through all the ads and attempts to capture one’s attention to get to the list. This is aggravating and I won’t play!
Total BS
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.
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!
Where are your 7 states ?
You have an omission: Rhode Island DOES NOT TAX Miltary pensions.
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’.
Florida also has no state income tax
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.