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States That WON’T Tax Retirement Distributions: 4 Best Retirement States

June 26, 2023 · Retirement Life
retirement distributions
Image By Katherine Welles From Shutterstock

Pennsylvania

While you may have heard of the fact that Independence State has a flat tax rate of 3.07%, it is a different story when we stop to look at retirement distributions. Pennsylvania is actually considered a very tax-friendly state when it comes to retirees, as they exempt retirement income from income tax as long as the plan requirements are met. They fully exempt any income that comes from Social Security benefits, IRAs, and 401(k)s. However, in order for your pension to be exempt as well, seniors will have to have turned 60 years old.

Like in Nevada, you should keep an eye on certain taxes, as Pennsylvania has a higher-than-average tax on property. Despite the hits, they make it up when it comes to sales taxes, as they are in the top 20 states with the lowest sales tax in the country!

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1 comment on “States That WON’T Tax Retirement Distributions: 4 Best Retirement States”

  1. Linda Warzecha says:
    March 19, 2024 at 7:03 pm

    It would benefit my husband and myself to live elsewhere (we are in NJ) however have no desire to leave our family.

    Reply
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