No tax on Pension or SS ????

[LuvGoofy6]

One of Kiplinger's top ten most tax-friendly states for retirees, the Mount Rushmore State (South Dakota)
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There is no state income tax, so Social Security benefits and other forms of retirement income get a free ride.

Sales taxes are relatively low, although they cover a broad scope of services.
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[nene0182]

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

Makes us stronger...or clinically insane depending on how you look at it

 

[tvguy]

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!

You are correct about Federal tax, you'll pay that anywhere you live. But OP is talking about state taxes. I just got back from Spring Training in Phoenix and listening to the "Snow Bird" retirees talk there was mind blowing. A lot of these folks sell houses they have owned for 30 or 40 years, buy a $100,000 condo as their home base, and a $100,000 RV, most had $100,000 to $200,000 or more left over and spend January, February and March in Phoenix, head home for 3 months, go to Florida for 3 months, spend October, November and December at home, then start the cycle all over again. Finding a state with no income tax to list as their home base saves them thousands a year.