What states do not tax federal retirement income?

Posted by Retirement Advisor
retirement
ronfurg asked:


I receive a retirement annuity from my service in the federal government and would like possibly to move to a state which does not tax the annuity income.

SOCORRO
Share and Enjoy:
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google

This entry was posted on Thursday, December 18th, 2008 at 7:18 pm and is filed under United States. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

« Jumpstart Your Retirement Benefits Application
What happens to 401k and other retirement accounts when the “owner” passes away? »

3 Responses to “What states do not tax federal retirement income?”

  1. botygy Says:
    December 20th, 2008 at 7:21 am

    FL and TN do not have an income tax–there are likely others as well

  2. Bob F Says:
    December 22nd, 2008 at 12:33 pm

    Every state that has an income tax will tax your retirement income. So you are limited to: AL, FL, NV, SD, TX, WA and WY. You might like NH or TN also since they only tax interest and dividends.

    Here is a chart you might find helpful to compare tax rates among states:

  3. ninasgramma Says:
    December 25th, 2008 at 7:50 pm

    Of course, any state that does not have an income tax is not going to tax your pension. In addition, there are states that tax wages but no pensions, such as Pennsylvania, and states that do not tax certain pensions, such as your federal pension.

    Louisiana, for example, has an income tax, taxes pensions, but waives state income tax on certain pensions, including your federal pension.

    There are 10 states that do not tax federal pensions:
    Alabama
    Hawaii
    Illinois
    Kansas
    Louisiana
    Massachusetts
    Michigan
    Mississippi
    New York
    Pennsylvania