How All 50 States Are Taxing Retirees In 2021

Photo by f11photo from Shutterstock

17.Kansas: not so tax-friendly

Kansas is a state that retirees would better avoid if they want to escape high taxes. This state is taxing distributions from private retirement plans(including IRAs and 401(k) plans), but also out-of-state public pensions.

  • The State Income Tax Range is 3.1%(on taxable income from $2,501 to $15,000 for single filers and from $5,001 to $30,000 for joint filers)- 5,7% (on more than $30,000 of taxable income for single filers and more than $60,000 for joint filers);
  • The Average Combined State and Local Sales Tax Rate is 8.7%;
  • The Median Property Tax Rate is $1,369/$100,000 of assessed home value;
  • No Estate Tax or Inheritance Tax.

18.Kentucky: tax-friendly

The Bluegrass State is not messing around. It exempts Social Security benefits from state income taxes, but also up to $31,110/person of a wide variety of retirement income(public and private pensions and annuities).

  • The State Income Tax Range is 5%;
  • The Average Combined State and Local Sales Tax Rate is 6%;
  • The Median Property Tax Rate is $829/$100,000 of assessed home value;
  • There’s no Estate Tax, but there is Inheritance Tax.

19.Louisiana: tax-friendly

In Louisiana, Social Security benefits aren’t taxed, and the military, federal government, state, and local government pensions are exempt from state income taxes as well.

  • The State Income Tax is 2%(on $12,500 or less of taxable income for single people, $25,000 for couples)- 6%(on more than $50,000 of taxable income; $100,000 for joint filers);
  • The Average Combined State and Local Sales Tax Rate is 9.55%;
  • The Median Property Tax Rate is $534/$100,000 of assessed home value;
  • No Estate Tax or Inheritance Tax.

20.Maine: not tax-friendly

Retirees who consider Maine as a retirement destination should know that it’s a pretty difficult state in matters of taxes. Maine’s median annual tax rate per $100,000 of home value is more than $200 above the national average.

  • The State Income Tax Range is 5.8% (on taxable income less than $22,450 for single filers; less than $44,950 for married people filing jointly)- 7.15% (on taxable income of $53,150 or more for single filers and $106,350 for joint filers);
  • The Average Combined State and Local Sales Tax Rate is 5.5%;
  • The Median Property Tax Rate is $1,295/$100,000 of assessed home value;
  • There is Estate Tax, but no Inheritance Tax.
PREV1 ... 45 6 78 ... 14NEXT

Leave a Comment

Your email address will not be published. Required fields are marked *

10 Things Your Boss CAN’T Legally Do To You

5. Promising a paid position to an intern This can be viewed as an illegal and unpaid training period which ca be punished with federal laws. 6. Discriminate They cannot discriminate against any employees based on: religion, color, sex, nationality,

7 Most Murderous Children

We live in a world surrounded by shocking and evil things. We expect the worst from humans, horrific and truly heinous crimes, however, sometimes these come from the ones that we least expect, children. A rocky situation at home, bad

From Our Network: