Iowa
You may be surprised to see Iowa on this list, as the state has been known to tax retirement distributions for years now! However, there is a reason to celebrate, as back in the 2023 tax filing year, the state had a tax exemption that skipped the inclusion of Social Security income in the total income of residents and had a few other deductions for other types of retirement income. When it comes to the taxes for 2023 (which you will have to file in spring 2024), all Iowa residents that are 55 and older will no longer have to pay state taxes on any retirement income!
This is definitely a big relief for those who live in Iowa and were thinking of relocating due to the tax on retirement distributions, as starting with the 2023 tax year they will not have to worry about this type of tax. The state is also working on rolling back its inheritance tax, so we are looking forward to seeing changes on that front as well.
If you have decided to relocate in retirement, you are going to be looking into buying or renting a property! To make sure that you do not miss spotting these issues, make sure you read about all the things you should keep an eye out for in this article!
It would benefit my husband and myself to live elsewhere (we are in NJ) however have no desire to leave our family.