This Is How All 50 States Tax Your Retirement Income

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Oregon

Oregon doesn’t tax Social Security income. Individual income tax rates can range from 5 to 9.9 percent.

Even so, Oregon allows those taxpayers who are qualified to claim either their retirement-income credit or even an elderly-or-disabled credit.

Pennsylvania

Pennsylvania doesn’t tax Social Security income. The individual income tax rate here is a flat 3.07 percent. Retirees shouldn’t worry, as Pennsylvania is “one of the most generous states in America, especially when it comes to offering income tax exclusions on a wide variety of retirement income.”

Retirement income isn’t taxed by the state after 59 years old, if the taxpayer has reached retirement, depending on years of service or age.

Rhode Island

Rhode Island is one of the states that tax Social Security benefits, even if a tax break is available for those taxpayers who are eligible to receive benefits. Here, individual income tax rates can range from 3.75 to 5.99 percent.

However, the state allows for a tax break from the next types of retirement incomes: private pensions, government pensions, 401(k) plans, 403(b) plans, military retirement pay, annuities, and other sources.

Under this tax break, residents who are eligible are able to deduct up to $15,000. The criteria of eligibility could depend partly on whether your income falls below a certain threshold, which Rhode Island annually updates it for inflation.

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2 thoughts on “This Is How All 50 States Tax Your Retirement Income”

  1. I understand that the Maryland Legislature just changed how much retirees pay in income taxes. I have not been able to find out the specifics of the new law. When does it take effect? What are the income limits? Can I now reduce the State witholding from my Minimum Required Diatributions?

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