State-by-State Guide to Taxes on Retirees

State levy is 6.1%, including a 1.25% tax that goes to local governments. Localities can add up to an additional 2.95% as well; the average combined rate is 7.17%, according to the Tax Foundation. Groceries are taxed at 3%.

Utah has a flat tax of 4.95%.

Effective tax rate: 3.42% for single filers, 4.95% for joint filers.

Social Security benefits are taxed to the extent they are taxed at the federal level.

Railroad Retirement benefits are exempt.

Taxpayers age 65 and older can claim a credit of up to $450 ($900 for joint filers). The credit is completely phased-out for single taxpayers with a modified adjusted gross income of $43,000 or more, joint filers with modified AGI of $50,000 or more, and married taxpayers filing separate returns with modified AGI of $34,000 or more.

In Utah, residents pay an average $713 in taxes per $100,000 of assessed home value.

Tax breaks for seniors: For 2019, homeowners and renters 66 and older (and surviving spouses of any age) who earned $33,530 or less in 2018 can get a “circuit breaker” tax credit that permits an abatement of 50% of the property taxes due, up to $970. For renters, the amount of relief received is also based on the percentage of rent paid. Homeowners and mobile-home owners get an additional credit equal to the tax on 20% of their property’s fair market value. Homeowners who qualify for the circuit breaker generally also qualify for an indigent abatement or deferral; those younger than 65 who have a disability or extreme hardship may also qualify.

Sales tax is due on purchases. A tax based on a passenger vehicle’s age is due on registration.

None.