9. Tennessee
The Volunteer State has an income tax, but it’s very limited. It’s for dividends and interest only, meaning that all retirees in Tennessee enjoy their retirement income. There’s no tax on IRAs, pensions, or 401(K)s.
Besides, collecting Social Security benefits as a Tennessee retiree is a joy because the state doesn’t tax them.
Also of interest: Top 10 Least Tax-Friendly States in America
As we’ve mentioned, the state has a limited income tax; for the 2020 tax year, there’s a flat tax of 1 percent on dividends and interest, but as for the 2021 tax year, the rate will be 0 percent. And as for inheritance or estate tax, you don’t have to worry; the Volunteer State doesn’t have any.
11 thoughts on “12 States Where Your Retirement Income Won’t Be Taxed”
pennsylvania or new hampshire!
How about states that tax retirement income after the first $20,000 – $25,000
Georgiadoes not taxretirement income until the adjusted amount exceeds 75,000.
Texas looks like the state for us, we presently live in California but we do not plan to retire here, just too expensive.
Please stay there.
You might want to ask if Rocky is a conservative who knows why CA is so awful – maybe you would welcome them. I live in “CA north,” in a state I like to call the Soviet Republic of Washington, and we are looking to get the hell out of here, too. Perhaps TX. I promise to be part of the solution, not the problem…
I have always said that your pension retirement should not be taxed.this should be in all states.you have worked 40 to 50yrs paying taxes and continue to pay until you die.I am in
North Carolina and they tax everything.you pay tax on your pension and a car tax as long as you own the car ,although you pay tax on the car when you buy it.we pay federal and state tax on our your pension retirement income. something needs to be done about this.
it surely be for me who did just about every thig manual for 50 year’s. being retired for 5 years doing every thing manual again mostly and getting lossy monthly pay.
What can we do to change unfair taxes in our lifetime?
Work all your life paying taxes and the gready states and their politicians want taxes still Michigan is one of the worst
Texas Born & raised, now in my retirement years. There is not another state I would live in! More tax benefits in your later years and the climate is great if you like 100+ degree summers.
I’m very happy in my own little town down by Houston, TX