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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.
See, although you'll always be subject to federal income tax, there are 13 states that don't tax retirement income -- at all. Here's a rundown of those states. 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, they do not tax retirement income: Illinois Iowa
While the majority of states do tax retirement income, 13 do not, although naturally, things aren't so black and white. Let's dive in. ... Minnesota has one of the highest tax rates on Social ...
Moving to a tax-friendly state can save you money in retirement. Skip to main content. Sign in. Mail. 24/7 Help. For premium support please call: 800-290-4726 more ...
Minnesota. Missouri. Montana. Nebraska. New York. North Carolina. North Dakota. ... The following 10 states at least partially tax withdrawals from retirement savings accounts but offer differing ...
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
Image source: Getty Images. These 9 states tax Social Security benefits. Here are the nine states that do tax Social Security benefits:. Colorado. Connecticut. Minnesota. Montana. New Mexico