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Most retirement income is taxable in the state, but you can exclude up to $10,000 from any retirement income that is not subject to Social Security withholding if you meet the income guidelines ...
Here are 13 states that won't tax your Social Security, 401(k), individual retirement account (IRA), or pension income. A map of the U.S. overlaid with $100 bills. Image source: Getty Images.
Most states don't tax Social Security income anyway, and for most of the few that do, this taxation is modest. Pension income isn't being considered either, although in most cases, states that ...
While these states do tax their residents' wages, in most cases they still exclude income from sources like 401(k) accounts, IRAs, pensions, and Social Security benefits from state-level taxation ...
On the federal level, you'll be taxed on up to 50% of benefits once provisional income exceeds $25,000 for single tax filers and $32,000 for married joint filers — and on up to 85% of benefits ...
While Kansas previously allowed anyone with an adjusted gross income of $75,000 or less to exempt their Social Security benefits from state taxes, a bill passed in June 2024 now eliminates taxes ...
For example, in Colorado, residents ages 65 and older have been able to fully deduct federally taxed Social Security benefits on their state income tax returns since tax year 2022. For 2025, that ...
Illinois charges a flat state income tax of 4.95 percent, but all retirement income is exempt from paying the tax. This includes pension payments as well as distributions from retirement plans ...
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