Best States for Retirees Who Want to Avoid Paying State Taxes on Retirement Income
This article from Yahoo Finance, published July 18, 2026, analyzes US states that offer favorable tax treatment for retirees. It highlights that 41 states do not tax Social Security income, 37 do not tax most military retirement pay, 16 exempt pension income, and 9 have no income tax. The article profiles seven states with specific tax breaks: Arkansas (exempts up to $6,000 in pension/IRA income, no Social Security or military tax), Illinois (exempts pensions, 401(k)/IRA withdrawals, Social Security, and military pay), Iowa (no tax on pension/annuity/IRA income for over-55s, flat 3.8% tax rate as of 2025), Mississippi (exempts retirement plan distributions, pensions, annuities, Social Security, and military pay), and New Hampshire (exempts various retirement incomes). The piece provides practical guidance for retirees seeking to minimize state tax burdens in retirement.
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Best States for Retirees Who Want to Avoid Paying State Taxes on Retirement Income
This article from Yahoo Finance, published July 18, 2026, analyzes US states that offer favorable tax treatment for retirees. It highlights that 41 states do not tax Social Security income, 37 do not tax most military retirement pay, 16 exempt pension income, and 9 have no income tax. The article profiles seven states with specific tax breaks: Arkansas (exempts up to $6,000 in pension/IRA income, no Social Security or military tax), Illinois (exempts pensions, 401(k)/IRA withdrawals, Social Security, and military pay), Iowa (no tax on pension/annuity/IRA income for over-55s, flat 3.8% tax rate as of 2025), Mississippi (exempts retirement plan distributions, pensions, annuities, Social Security, and military pay), and New Hampshire (exempts various retirement incomes). The piece provides practical guidance for retirees seeking to minimize state tax burdens in retirement.