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This Is How All 50 States Tax Your Retirement Income

May 27, 2022 · Retirement Life
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Michigan

Michigan doesn’t tax Social Security income. The individual income tax rate is 4.25 percent. If you were born before 1946, the vast majority of your retirement income is completely exempt.

Michigan will give less leeway to its taxpayers that were born in 1946 or later, and especially those who were born after 1952.

Minnesota

Minnesota is taxing Social Security benefits, even if some taxpayers might be able to exclude only a part or completely their benefits. Individual income tax rates range from 5.35 to 9.85 percent.

Taxpayers who are 65 and older or even disabled might be eligible for a specific subtraction that will lower the amount of their income that’s being taxed in Minnesota.

Eligibility for the subtraction is completely depending in part on income, as it’s being explained by the State Department of Revenue. Also, military retirement pay is exempt for qualifying taxpayers, as the state confirmed.

Mississippi

Mississippi doesn’t tax Social Security either. Individual income tax rates can range from 3 to 5 percent. According to Kiplinger, Mississippi is one of the best states to retire, because the majority of types of retirement income are exempt from state income taxes.

This includes also public and private pensions and distributions from individual and employer-sponsored retirement plans.

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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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