This Is How All 50 States Tax Your Retirement Income

retirement
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Arkansas

Individual income tax rates are ranging from 0.9 to 6.9 percent. However, up to $6,000 in income from public and private pensions are currently exempt from taxes. In other words, up to $6,000 in distributions from individual retirement accounts for taxpayers who are 59 years old or older.

California

California doesn’t tax Social Security income. Individual income tax rates span from 1 to 12.3 percent. An additional 1 percent can be added to the top rate, which makes it 13.3 percent, for those taxpayers who have taxable income that exceeds $1 million.

Colorado

Colorado is on the list of 13 states that levy income taxes on Social Security benefits, as AARP concluded. Colorado’s individual tax rate is a flat 4.63 percent.

Even so, Colorado residents who can meet those special qualifications can exclude up to $20,000 or $24,000 of their Social Security, pension, and annuity income, as the state declared. The maximum amount of the exclusion in question solely depends on the taxpayer’s age.

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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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