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While federal taxes on pension income are unavoidable, state policies vary widely.
This patchwork of tax laws means that where retirees live matters just as much as how they save.
Heres a closer look at the states that spare pensions from taxes, according toKiplinger.
However, living costs can be higher due to the remote nature of many areas.
Nevada
Nevadas tax-friendly policies extend to retirement income, with no taxes on pensions orSocial Security benefits.
New Hampshire
New Hampshire doesnt tax wages, pensions or Social Security benefits.
It does currently levy taxes on dividends and interest, but this is set to stop this year.
Affordable living costs and moderate property taxes make it one of the most practical states for stretching retirement income.
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