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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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Photo by Barbara Smyers from Shutterstock

Texas

The Lone Star State doesn’t have state income taxes.

Utah

Utah taxes Social Security benefits.

The individual income tax rate is flat at 4.95 percent. Even so, Utah offers a retirement credit of up to $450 for taxpayers born on or before December 31, 1952, as the state confirmed.

Vermont

Vermont taxes Social Security benefits. However, because of a state law enacted in 2018, the state allows for an income tax exemption for beneficiaries who have an income below a specific amount.

The individual state income tax rates range from 3.35 to 8.75 percent, which is a very fair range, given the area and how demanded it is.

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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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