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New Mexico taxes retirement income using state income tax rates, which range from 1.7% to 5.9% in 2024. Residents ages 65 and older can claim an $8,000 exemption to offset their tax burdens.
Why don't some states tax retirement income? It could be as simple as a desire to attract retirees. The United States is one country, but its 50 states compete with each other for residents and ...
So while important, taxes on retirement income should not be your only consideration when thinking about which state to live in. The $ 22,924 Social Security bonus most retirees completely overlook
The next-best states to live in as a retiree, at least in regard to income taxes, are the following four, because while they do sport income taxes, they do not tax retirement income: Illinois Iowa
Illinois: This is where the differences are simplest -- distributions from 401(k) and other retirement accounts along with pension income and Social Security payments aren't subject to income tax ...
Percentage of Taxable Benefits Added to Income. Filing Single. Married, Filing Jointly. 0%. Less than $25,000. Less than $32,000. Up to 50%. $25,000 to $34,000
States with no income tax. Retirement distributions from 401(k) plans or IRAs are considered income for tax purposes. Fortunately, there are several places with no state income tax: Alaska ...
Image source: Getty Images. Even if you figure out the state that optimizes your tax situation, there are other considerations. Chief among them is the cost of living in a particular state. Some ...