Here are the states that don't tax retirement income.
No Income Tax - Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming
Only Tax Dividends and Interest - New Hampshire, Tennessee
No Tax on Federal, Military, In-State Pensions and Social Security - Alabama, Hawaii, Illinois, Louisiana, Massachusetts, Michigan, Mississippi, New York, and Pennsylvania. Alabama, Hawaii, and Illinois also exempt income from certain types of private pensions. Mississippi and Pennsylvania also do not tax IRA and 401K withdrawals.
No Tax on Military Pensions and Social Security - Ohio
No Tax on Social Security - Arizona, Arkansas, California, Delaware, Georgia, Idaho, Iowa, Kentucky, Maine, Maryland, New Jersey, New York, North Carolina, Oklahoma, Oregon, South Carolina, Virginia, Wisconsin. Kentucky also exempts pension and IRA income up to a certain level.
Here are states that tax all retirement income.
Tax All Retirement Income - Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia
For more on Reaping the Rewards, check back Fridays for a new segment.
This is not retirement, financial or tax advice. Please consult a professional advisor.
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