13 Low Tax States to Retire

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8. Pennsylvania

One of the original 13 colonies of the United States, is known for many things, from its forests to its major cities to its chocolate factories. “Sylvania” is Latin for “wooded place”. Social Security benefits are not included in taxable income in the state of Pennsylvania.

Distributions from 401(k)s and similar types of workplace retirement accounts and IRA withdrawals taken after age 59 1/2 are also generally exempt from state income tax. But retirees will have to pay a 6% sales tax on their purchases.

The median property tax bill was $2,871 in 2018.

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