State-by-State Tax Considerations for Retirees
When you rely heavily on your savings and benefits, state taxes can make or break your budget. Moving across state lines might completely alter your net monthly income. Before choosing your destination, utilize tools and guides from authoritative sources like Kiplinger to understand your prospective tax burden.
The table below provides a high-level comparison of how different state tax models impact retirees on a fixed income:
| Tax Model | Key Benefit | Example States |
|---|---|---|
| No State Income Tax | You keep 100% of your Social Security, pensions, and 401(k) withdrawals at the state level. | Florida, Texas, Nevada, Tennessee, Wyoming, South Dakota, New Hampshire |
| Exempts Social Security | Your core federal benefits are protected, though other retirement income may be taxed. | Pennsylvania, Illinois, Mississippi, Ohio, North Carolina |
| Taxes Social Security | State taxes will reduce your net benefit; often offset by lower property or sales taxes. | Colorado, Connecticut, Minnesota, Montana, Utah |
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