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9 States with No Income Tax

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Many states exempt some retirement income, but if you retire to one of these nine states, you don’t have to do the math. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no income tax – for any residents. For retirees, in particular, that means no state income tax on Social Security benefits, withdrawals from IRAs and 401(k)s, and payouts from pensions.

Be advised, though, that states still have to pay for roads and schools, so other taxes may be higher. Texas, for example, has some of the highest property taxes in the U.S. In addition, New Hampshire and Tennessee tax some dividends and interest, although Tennessee plans to phase out its tax by 2021.

SEE ALSO: 13 States That Tax Social Security


Kiplinger's state-by-state guide to taxes on retirees is updated annually based on information from state tax departments, Wolters Kluwer Tax & Accounting and the Tax Foundation. All data are for the 2017 tax year unless otherwise noted.


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