👴👵 15 States That Don’t Tax Retirement Pension Payouts (AARP ARTICLE)

[SpringIsHereSoHappy]

🗣By John Waggoner, AARP. Updated August 7, 2023.

*** Do you LIVE in any of these states or would like to? 🤔

Comments are welcome! ***

https://www.aarp.org/retirement/planning-for-retirement/info-2021/states-that-dont-tax-pension-payou...

[DirkB349973]

Iowa enacted a law at the beginning of 2023 to collect no state taxes on retirement income, but the brokerages I've dealt with haven't updated their systems (the year is nearly over!) Hence, they withhold a mandatory 5%, requiring you to ask them to return it to your account or file for a state tax refund at the end of the year. It is rather annoying and I wonder if/when they will update their systems. I worked in software for many years and it seems like calculating state withholding on an IRA would be implemented generically so it could be changed with a few database entries. I guess it doesn't work that way. Another first-world problem. 😉

[SpringIsHereSoHappy]

1 comment (9/22/23)

As we AGE, some of us want to be NEARER family.

That was MY reason for moving back to Melbourne, Florida.

Nicole 👵

[GailL1]

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@SpringIsHereSoHappy wrote:

(9/22/23)

As we AGE, some of us want to be NEARER family.

That was MY reason for moving back to Melbourne, Florida.

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Then that was your plan - some of us have to consider other things - like taxes so they don’t eat us alive.  

Wonder if your geographical plan would have been any different if your family lived in a high cost of living state (taxes and otherwise) like NY or CA.   ??  

[nctarheel]

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@SpringIsHereSoHappy wrote:

🗣By John Waggoner, AARP. Updated August 7, 2023.

*** Do you LIVE in any of these states or would like to? 🤔

Comments are welcome! ***

https://www.aarp.org/retirement/planning-for-retirement/info-2021/states-that-dont-tax-pension-payou...

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Hey @SpringIsHereSoHappy,

Having already read this article as I am a member of AARP, your highlighting of the article did bring back a memory I hadn't thought of in a while.

My boss retired before me. His wife got an offer for work in the Bristol Virginia/Tennessee. area.

They actually had to be careful as to where they established residence because Tennessee doesn't tax retiree benefits and Virginia does.

The town of Bristol is actually bisected by the state line.

So what side of town they lived on in Bristol made a HUGE difference.

[SpringIsHereSoHappy]

1 comment (9/21/23)

I had left Florida in 2015 to live in Virginia.

Retired in 2020 and moved back to Florida this year 2023.

Roanoke, Virginia is about 3 times CHEAPER than Melbourne, Florida. 😥

Lol, so the fact that Florida is on this list and NOT Virginia is NOT going to IMPROVE my lifestyle! 🤣😂

Missing Roanoke.....

Nicole👵

[GailL1]

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@SpringIsHereSoHappy wrote:

(9/21/23)

Roanoke, Virginia is about 3 times CHEAPER than Melbourne, Florida. 😥

Lol, so the fact that Florida is on this list and NOT Virginia is NOT going to IMPROVE my lifestyle! 🤣😂

Missing Roanoke.....

Nicole 👴

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Maybe not your lifestyle but for many people it definitely would especially if a retiree might pay a boat load of state taxes(several kind).  It is one of the reasons why Florida, as well as other states, are popular with retirees.

In Georgia, my place of residence . . . . (from Smart Asset)

Georgia does not tax Social Security retirement benefits and provides a maximum deduction of $65,000 per person on all types of retirement income for anyone 65 or older. The state’s sales tax rates and property tax rates are both relatively moderate. Georgia has no inheritance or estate taxes.

ALL these income / asset breaks make a state very friendly to retirees - especially those with income and assets.

Virginia isn’t real bad - at least not compared to some other states - (From Smart Asset) 

Social Security retirement benefits are not taxed in Virginia. Other types of retirement income, such as pension income and retirement account withdrawals, are deductible up to $12,000 for seniors. Property and sales tax rates are low.

I don’t know about inheritance / estate taxes in Virginia.  

This is all a part (big part) of  “Retirement planning”