Your Retirement Income Won’t Be Taxed in These 12 States
Where your 401(k)s, IRAs and pensions are untouched (but it still may not be cheap to live)
The personal finance site Kiplinger has rounded up a dozen U.S. states that won’t tax you on common retirement income from 401(k)s, IRAs and pensions.
Their list includes some detailed information about the tax-haven dozen, including places that also do (or do not) have income, inheritance or estate taxes. Within the list, it also points out states that don’t tax social security benefits.
If you’re looking at this from a political perspective, you might be surprised; while Alaska and Florida are on there, so are Washington and Illinois.
As well, this a very specific grouping. While Pennsylvania makes it on the list, Kiplinger points out your retirement income there can be taxed if you retire early, and residents are still subject to income and inheritance taxes. And a few of the listed states, including Illinois and Texas, also land on the 10 Least Tax-Friendly States for Retirees.
So you’ll want to cross-reference a few things before you settle down for good.
The 12, in alphabetical order: Alaska, Florida, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington and Wyoming.
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