Curious About Big Taxes? Here’s How 8 States Tax Retirees

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5. Maryland 

This state doesn’t tax Social Security benefits, and that’s amazing. If you are 65 or older, you may be eligible for a healthy extension on 401(k), 403(b), and 457 plan distributions, as well as income from public and private pensions.

If you’re thinking about taking out a line of credit, then you should know that there is one available for seniors ($1,000). If your income is lower than $100,000, credits are as follows: a credit of $1,750 for joint filers, surviving spouses, and ahead-of-household seniors with a federal AGI of $150,000 or even less. Sales taxes are low in Maryland too.

And if you are 100 years old, you can exclude up to $100,000 of income from tax.

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20 thoughts on “Curious About Big Taxes? Here’s How 8 States Tax Retirees”

  1. You need to swap out Alabama for Virginia. Virginia taxes literally everything ata a high rate. I pay almost much personal property tax for my 4 year old truck as I do for my house.

    1. I can’t quite understand your comment, but I think that you are saying that the taxes in Va are high & I agree! I get so upset every time I have to pay taxes on my vehicle every year!!!

  2. What about Texas? Sure, property taxes are a little high; however, if you are a 100% disabled vet you pay 0 property tax on your primary residence. There is no state income tax, they don’t tax military retired pay or your vehicle when you register it every year like some states. TX is also one of the most veteran-friendly states with many discounts for vets. Also some of the best laws for gun owners.

    James

  3. THE U.S. GOVERMENT TAXES NEARLY ALL OF MY SOCIAL SECURITY AND THAT IS A CRIME AND A SHME! ITSBLOODMONEY. HOW DARE THEY!! I HATE PAYING TAXES ON SOCIAL SECURITY!!!

    1. Yes agree my opinion, in general all our income tax rates state or federal are too high especially capitol gains tax. California is ridicoulous on capitol gains and state income taxation.

    2. well you can blame the brain dead Bill Clinton for that as hes the one that signed it into law tax on a persons social security the obra act was passed and the scumbag AL GORE was the deciding vote and of course he passed it to tax our social security

  4. Gibson Janice

    I wish we didn’t have to pay property tax after 65 in Alabama. We are 82 and yes we are paying property tax. It’s not near as high as most states but it’s misinformation that we don’t pay property tax after 65.

  5. Linda and Brian

    IF you can afford a house in Colorado!!! We had to move out of Colorado because we are not millionaires!

  6. Steven Mackey

    Florida is a low tax state. We don’t have income tax. We have four main V.A. hospitals and dozens of V.A. out clinics not to menschen Military Basses. A veteran with 100% disability gets a free auto tag free hunting and fishing license. free entrance to state & Federal parks. No taxes on your house except fire, school and trash pickup. And the sun, bugs, rain, sunburns, tans, and the tourist crowds are also free. lol (please do not feed our gators, they are already friendly.)

  7. Same mistake here, I lived in NYC for 25 years and my taxes were very low comparing to where I moved to Connecticut. I am amazed how expensive is CT, they tax you on everything that moves, inclusive a simple cheap ONE-motorcycle trailer that has a license plate…We cannot wait to get out of CT in the next for years or so, thus, we are also looking to be able to live a better life after retirement, and we are even thinking of going OVERSEAS…sad to have to leave the USA because of this nonsense taxation. I HOPE WE will find a better State where we can retire…4 years to find that out.

  8. Murray Schaumburg

    Don’t move to Illinois to avoid taxes. State has been controlled by democrats for at least the last 20 years or more. Everything is taxed, dead or alive, moving or not moving, eatable or not eatable and the state wants more. Any retail sale is charge some kind of tax.

  9. Please be careful moving to Idaho. We have a lot of retirees coming here, and not only do we have a severe doctor shortage, if you ever have to use public money, Medicaid program you already paid into through income tax, they have asset forfeiture and will auction off your house when you pass away. It’s cruel along with the high property tax and sales and food taxes.

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