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These 34 states tax pension income When it comes to pension income, the news isn't as good. Here, per Kiplinger.com, are the 34 states -- plus the District of Columbia -- that tax pension income:
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 ...
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 ...
The four states that don't tax retirement income. 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 ...
Filing As. Combined Income* Percentage of Benefits Taxable. Single individual. Between $25,000 and $34,000. Up to 50%. Married, filing jointly. Between $32,000 and $44,000
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 ...
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