Similarly to retirees in New Hampshire, you’ll only have to pay taxes on interest and dividends if you move to Tennessee. Otherwise, the state won’t touch your pension, 401(k), IRA, or Social Security, for that matter.
Here’s how the Volunteer State does collect taxes, though. In 2020, there’s a flat 1% on interest and dividends. However, if you plan on retiring later, there’s some good news as the rate will go down to 0% starting in 2021.
If your spouse is over 100 years old, first off, congratulations! Secondly, all your income will be exempt from taxes for joint returns!
Finally, the state doesn’t have any taxes for estates or inheritances.
Since Texas doesn’t have a personal income tax, Uncle Sam won’t touch your IRA, 401(k), or Pension. That also means that you won’t have to pay any taxes on Social Security benefits either.
And you can rejoice even more since the Lone Star State doesn’t apply any taxes on inheritance and estate either!