4. Mississippi
The Magnolia State doesn’t tax your hard-earned retirement income if you’re at least 59½ years old. But, if you choose to retire earlier, Mississippi will take its share with no hesitation. IRAs, pensions, and 401(k)s are all taxable for Americans who rush in retiring earlier.
Thankfully, the state doesn’t tax Social Security benefits. The state’s lowest income tax rate is 3 percent for the 2020 tax year, and its top rate is 5 percent, applied to more than $10,000 representing taxable income.
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For the 2022 tax year, the minimum rate will be 4 percent applied to a tax income range between $5,001 and $10,000. Don’t worry; you can see some rays of sunshine here, too: Mississippi has no inheritance or estate taxes.
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