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They don't tax IRA withdrawals, either. You won't have to pay income taxes on any pension benefits you receive. Unfortunately, you won't be able to completely avoid paying income taxes.
Rhode Island taxes all retirement income, including Social Security, with three state income tax brackets ranging from 3.75% to 5.99%. But seniors with AGIs below the state’s income limits can ...
Social Security payments are also exempt. Iowa Beginning in 2023, Iowa residents over the age of 55 are no longer taxed on their retirement income thanks to a 2022 law .
Here are the nine states that do tax Social Security benefits. Don't freak out if your state is in this short list, because many residents of these states will pay little to nothing on their ...
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 retirees expect roughly 40% of their retirement income to come from Social Security payments, GoBankingRates reported. Yet, if you live in one of more than a handful of U.S. states (13, to be...