States Where Retirees Can Keep More Of Their Income

June 15, 2017

Sunny Southern California would be a great place to retire if it weren’t so expensive. Beyond the house prices and cost of living, the state has the highest state income tax rate in the nation.

CBS News broke down the states where retirees can keep more of their income. Seven states have no state income tax, including Florida, Texas, and Nevada, while Tennessee and New Hampshire tax individuals only on dividends and interest.

Washington, D.C., and 28 states, including Illinois, Oregon, and North Carolina, don't tax any Social Security income. Ten states don't tax income from government pension plans.

Be aware that some states with low or zero income tax rates compensate by getting revenue from other sources. Some states have higher property tax rates (New Hampshire and Texas), some charge higher sales taxes (Tennessee) and others (Washington) charge higher taxes on gasoline and other fuels.

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