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
State Income Taxes: There is no state income tax in Alaska. Income from Social Security, IRAs, 401(k)s and other defined-contribution employer retirement plans, private pensions and public pensions are not taxed by the state.
Sales Tax: Alaska is one of five states with no state sales tax. However, localities can levy sales taxes, which can go as high as 7.5%. But, the statewide average is only 1.76%.
Property Taxes: The median property tax on Alaska's median home value of $250,000 is $2,956.
Inheritance and Estate Taxes: There is no inheritance tax or estate tax.
For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Alaska .
SEE ALSO: 15 Worst States to Live In During Retirement
State Income Taxes: There is no state income tax in Florida. Income from Social Security, IRAs, 401(k)s and other defined-contribution employer retirement plans, private pensions and public pensions are not taxed by the state.
Sales Tax: 6% state levy. Localities can add as much as 2%, and the average combined rate is 6.8%, according to the Tax Foundation.
Property Taxes: The median property tax on Florida's median home value of $159,000 is $1,686.
Inheritance and Estate Taxes: There is no inheritance tax or estate tax.
For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Florida .
SEE ALSO: 8 Things You Must Know About Retiring to Florida
State Income Taxes: There is no state income tax in Nevada. Income from Social Security, IRAs, 401(k)s and other defined-contribution employer retirement plans, private pensions and public pensions are not taxed by the state.
Sales Tax: 5.5% state levy. Localities can add as much as 1.3%, and the average combined rate is 7.98%, according to the Tax Foundation.
Property Taxes: The median property tax on Nevada's median home value of $192,100 is $1,420.
Inheritance and Estate Taxes: There is no inheritance tax or estate tax.
For details on other state taxes as well as state tax breaks for retirees see the complete guide to taxes on retirees in Nevada .
SEE ALSO: Retirement Planning Mistakes You'll Regret Forever
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
