Nevada
You may lose a couple of dollars playing slots in Nevada, but you’ll be a winner when it comes to how Uncle Sam will treat you tax-wise. Here, the state won’t tax your pension income because, well, it doesn’t have an income tax at all!
Naturally, that means that your Social Security benefits are safe, as are your 401(k) and IRA distributions.
All you really need to worry about if you’re going to live in Nevada is how not to gamble all your precious retirement savings away! Are you ready to pack your bags and head right on over to the Silver State?
New Hampshire
The Granite State only imposes taxes on dividends and interest, meaning it’s the only New England state without a general income tax. To put it simply, you don’t have to worry about paying taxes on your pension if you currently live or want to relocate here.
Luckily, that also includes your 401(k) and IRA contributions as well as your Social Security benefits.
When it comes to interest and dividends, you’ll only have to worry about a flat 5% tax rate. Retiring to New Hampshire is starting to sound better and better, right?
