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Which states tax retirement income?
Which states are best for retirees come tax time?
GOBankingRates has culled together some answers regarding the Western states.
Considering retiring in the West?
Already there and dont know what do to for tax season?
Keep reading for Western statetax tips and tricks.
Arizona does not tax Social Security.
It does tax other retirement income, but some pensions qualify for exemptions.
This also applies to pensions and distributions from IRA and 401(k) accounts.
Further, no income from 401(k)s, IRAs or pensions is taxed either.
Social Security benefits are not taxed by the state except on people who make more than $100,000.
If you are 100 or older, you do not pay state taxes.
Utah
All retirement income is taxable in Utah, including Social Security benefits.
To help offset this, retirees on pensions can utilize a $450 tax credit.
It also has an extremely low property tax rate of 0.55%.
Housing prices are also very low, and groceries, medical equipment and prescription drugs are all tax-exempt.
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