These 38 States Don’t Tax Your Social Security Benefits

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15. Kentucky

The Bluegrass State has a 6 percent levy with no other sales taxes. Regarding income tax, the state has a flat rate of 5 percent, yet, localities can make it higher.

In this U.S. state, the median property tax rate is $862 per $100,000 of assessed home value, and even there’s no estate tax, Kentucky imposes an inheritance tax. Thankfully, all Class A beneficiaries, meaning parents, brother, spouse, child, sister, grandchild, half-sister, and half-brother, are exempt.

If you don’t fall under this category, note that the state’s inheritance tax ranges between 4 percent and 16 percent.

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