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This Is How All 50 States Tax Your Retirement Income

May 27, 2022 · Updated September 19, 2022 · Retirement Life
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Maine

Maine doesn’t tax Social Security income. Individual tax rates can range from 5.8 to 7.15 percent. Maine will also offer pension benefits income deduction.

It could apply to as much as $20,000 in retirement income from pension benefits but also as retirement plan benefits of various degrees, as the state declared.

Even so, the amount is reduced by income through Social Security. Military retirement plan benefits are completely exempt from state income taxes.

Maryland

Maryland doesn’t tax Social Security income. Individual income tax rates can range from 2 to 5.75 percent. Those residents who are 65 years or older or completely disabled might be eligible for a pension exclusion of up to $30,600, as the state comptroller confirmed.

Even more, residents who are 65 or older and are currently getting military retirement benefits might be able to subtract up to $15,000 of those benefits from their federal adjusted gross income before clarifying their Maryland tax rate.

Massachusetts

Massachusetts doesn’t tax Social Security benefits. The individual income tax rate here is a flat 5.05 percent. But, as Kiplinger added, civil-service, Massachusetts state alongside local government pensions and specific out-of-state pensions might be exempt.

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

  1. Gary Loock says:
    October 10, 2022 at 2:29 pm

    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?

    Reply
  2. claudette minichiello says:
    September 29, 2022 at 3:23 pm

    how much are senior,s taxed in kentucky?

    Reply
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