No tax on Pension or SS ????

[Tigger2ntinkerbell]

Can anyone tell me which State does not tax Out of State pensions(non-government pension), including not taxing my Social Security. Average income not over 60,000 - married.
We will only be Renting House/Apartment. So Property tax doesn't count. No kids(grown and moved out). Have No IRA or 401. TIA

 

[yoopermom]

A quick internet search brought up this:

States That Don't Tax Public and Qualified Private Pensions

• Alabama
• Alaska
• Hawaii
• Illinois
• Kansas
• Louisiana
• Massachusetts
• Michigan
• Mississippi
• New York
• Pennsylvania

Read more: http://web.finweb.com/retirement/11-us-states-that-dont-tax-pensions.html#ixzz3UqZdwlAJ

Terri

 

[Traveliz]

Florida doesn't have state taxes so they would also not being taxing that money...any other state without state income tax would fall into that guideline also.

Liz

 

[yoopermom]

And I found this interesting...

States that have no income tax or exempt pensions and Social Security income, and that also have low property and sales taxes top the list. These states are: Alaska, Nevada, Hawaii, Wyoming, Florida, Louisiana, Delaware, and Mississippi.

http://taxes.about.com/od/statetaxes/a/Best-States-for-Retirees.htm

Obviously they don't take cost of living into account, since Alaska and Hawaii are expensive...
Terri

 

[Tigger2ntinkerbell]

Anyone know about:
Texas for Out of State(non-government)Pension and Social Security??
What about Alabama on Social Security???
Same thing about Mississippi???
TIA

 

[yoopermom]

Here's a link to Kiplinger's state by state guide :

http://www.kiplinger.com/tool/retir...by-state-guide-to-taxes-on-retirees/index.php

Terri

 

[ThistleMae]

I'm sorry I don't understand this topic? I'm going to do a little research on the web. My understanding on SS is that if your combined income is between $ 32,000 and $ 44,000 per couple, per year,(adjusted gross and half of SS) they will tax you on 50 percent of your SS. If under, no taxes. For a single person it is $ 25,000. If you are a couple and you are bringing in over $ 44,000...it is 85 percent taxable. This is from the SS website, so what is the deal with the states listed above? Social Security is Federal...confused!

 

[yoopermom]

Thistlemae, according to the wall street journal...
"Minnesota is looking to become the next state to exempt Social Security income from taxes, a move lawmakers hope will dissuade retirees from fleeing.
Though some might argue that climate is the real culprit behind Minnesota’s exodus, the North Star state is among only 13 that slap some kind of tax on Social Security income. Some of those states, among them Connecticut and Montana, have separate calculations and/or income limits to determine taxable Social Security benefits. But Minnesota—like Nebraska, North Dakota, Rhode Island, Vermont and West Virginia—tax Social Security income to the same extent that the federal government does, or on as much as 85% of your benefit.
Only seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming—don’t tax individual income of any kind, according to the Wolters Kluwer CCH tax and accounting service."
http://www.wsj.com/articles/states-that-tax-social-security-benefits-1422147897

Terri

 

[elgerber]

Thistlemae, according to the wall street journal...
"Minnesota is looking to become the next state to exempt Social Security income from taxes, a move lawmakers hope will dissuade retirees from fleeing.
Though some might argue that climate is the real culprit behind Minnesota’s exodus, the North Star state is among only 13 that slap some kind of tax on Social Security income. Some of those states, among them Connecticut and Montana, have separate calculations and/or income limits to determine taxable Social Security benefits. But Minnesota—like Nebraska, North Dakota, Rhode Island, Vermont and West Virginia—tax Social Security income to the same extent that the federal government does, or on as much as 85% of your benefit.
Only seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming—don’t tax individual income of any kind, according to the Wolters Kluwer CCH tax and accounting service."
http://www.wsj.com/articles/states-that-tax-social-security-benefits-1422147897

Terri

I have nothing to add, but this makes me laugh!!! It's absolutely our weather that makes people flee, not the taxes! We are counting the years till we can go, because we can't take the winters anymore.

 

[morgan98]

Anyone know about:
Texas for Out of State(non-government)Pension and Social Security??
What about Alabama on Social Security???
Same thing about Mississippi???
TIA

Texas has no state income tax, so they wouldn't tax either of those. Tennessee also does not have state income tax on wages, but does tax interest and dividend income at 6% or so, I believe.

 

[ThistleMae]

I have nothing to add, but this makes me laugh!!! It's absolutely our weather that makes people flee, not the taxes! We are counting the years till we can go, because we can't take the winters anymore.

Thank you....I had no idea this was the case. I guess people really need to decide if they want to move. I'm not. I'll pay. But for those who don't mind moving.....I guess this is an option. But laws change frequently, what is good one year may change the next. It's all a gamble if you ask me. Thanks again.

 

[ThistleMae]

Thistlemae, according to the wall street journal...
"Minnesota is looking to become the next state to exempt Social Security income from taxes, a move lawmakers hope will dissuade retirees from fleeing.
Though some might argue that climate is the real culprit behind Minnesota’s exodus, the North Star state is among only 13 that slap some kind of tax on Social Security income. Some of those states, among them Connecticut and Montana, have separate calculations and/or income limits to determine taxable Social Security benefits. But Minnesota—like Nebraska, North Dakota, Rhode Island, Vermont and West Virginia—tax Social Security income to the same extent that the federal government does, or on as much as 85% of your benefit.
Only seven states—Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming—don’t tax individual income of any kind, according to the Wolters Kluwer CCH tax and accounting service."
http://www.wsj.com/articles/states-that-tax-social-security-benefits-1422147897

 

[ThistleMae]

Thank you....I did post a response to your information....it came out on wrong post. Your answer is appreciated.

 

[eliza61]

I have nothing to add, but this makes me laugh!!! It's absolutely our weather that makes people flee, not the taxes! We are counting the years till we can go, because we can't take the winters anymore.

LOL, elgerber, I was reading an article about the best places for retirees to live and I think 7 out of the 10 where horrible weather wise. I think number two was NORTH DAKOTA

I'll pay my entire pension in taxes before dealing with a North Dakota winter.

 

[yoopermom]

No worries, we're years away from retirement, but have also started to sort through all of this, since I will have two state pensions (if the respective governors don't destroy them before that) and s.s. only. It's really a trick to find a state that is senior friendly in most ways, it's always a tradeoff between weather, taxes, healthcare, amenities, etc. I just know I do NOT want to retire in WI/MI despite having lived here all of my life...

I know many full time r.v.ers, and they "establish residency" in either TX or SD, because of how seniors are (not) taxed there.

Terri

 

[elgerber]

LOL, elgerber, I was reading an article about the best places for retirees to live and I think 7 out of the 10 where horrible weather wise. I think number two was NORTH DAKOTA

I'll pay my entire pension in taxes before dealing with a North Dakota winter.

ROFL!!!! Yeah, the only thing worse than our winters, is winter in North Dakota!

 

[havaneselover]

FL's property taxes can be very high. We had a 4/3/2 in Tampa on zero lot line and our taxes in 2006 were about $10,000. In Virginia I've got a 4/2.5/2 on a quarter acre with top school assignments and my taxes are <$3k. Now my parents are in Collier County, Florida and there taxes are very reasonable.

And I found this interesting...

States that have no income tax or exempt pensions and Social Security income, and that also have low property and sales taxes top the list. These states are: Alaska, Nevada, Hawaii, Wyoming, Florida, Louisiana, Delaware, and Mississippi.

http://taxes.about.com/od/statetaxes/a/Best-States-for-Retirees.htm

Obviously they don't take cost of living into account, since Alaska and Hawaii are expensive...
Terri

 

[barkley]

we're in Washington state-no state income tax period. one thing I would suggest anyone considering a move post retirement to another state (or even region within your own state)-if you are planning on using a retiree medical plan from a former employer then REALY research what is available and what the cost is. our former government employers offer multiple choices within a small geographical radius of where they are located (pretty much the reasonable amount of space someone would commute from) but outside that radius it's only one choice for coverage, few providers that accept it, and horrendous premiums. given that a few years after I retired my employer changed the rules such that new hires would never have post retirement coverage I consider myself lucky to have it but it's still much more expensive than people realize and takes a large chunk of our budget (even with medicare coverage).

 

[Traveliz]

I'm sorry I don't understand this topic? I'm going to do a little research on the web. My understanding on SS is that if your combined income is between $ 32,000 and $ 44,000 per couple, per year,(adjusted gross and half of SS) they will tax you on 50 percent of your SS. If under, no taxes. For a single person it is $ 25,000. If you are a couple and you are bringing in over $ 44,000...it is 85 percent taxable. This is from the SS website, so what is the deal with the states listed above? Social Security is Federal...confused!

Social Security may be Federal but it's also a source of income and states that tax your income may also tax your Social Security income. The same goes for pensions that is why many seniors or retirees look for states that do not tax these items or have no state income tax at all.

Liz

 

[DisneynBison]

ROFL!!!! Yeah, the only thing worse than our winters, is winter in North Dakota!

Hey now we like our -30 degrees and 40 mph wind. At least that is what we keep telling ourselves Ya Ya Yubecha