GOBankingRates works with many financial advertisers to showcase their products and services to our audiences.
These brands compensate us to advertise their products in ads across our site.
This compensation may impact how and where products appear on this site.
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information.
you’ve got the option to read more about oureditorial guidelinesand our products and servicesreview methodology.
Curious which Southern states are the best for retirees at tax time?Check out these tax tips.
Alabama
Retirement in the Yellowhammer State is rather tax friendly, as Alabama exempts all retirement benefits.
Retirees can take a deduction of $6,000 for retirement income, such as an IRA or a pension.
If a taxpayer has retirement income of less than $65,000, they pay no taxes at all.
Kentucky
All Social Security income in Kentucky is exempt from taxation.
Louisiana
Louisiana is yet another state that exempts all Social Security retirement benefits from state income tax.
Moreover, property taxes in Louisiana are very low (which makes up for the high sales taxes).
The state offers a homestead credit, though, thats worth taking advantage of.
Also, all homeowners are eligible for homestead tax exemptions.
North Carolina
North Carolina does not tax Social Security income and offers a few other exceptions.
Further, the state has very low property taxes, and no estate or inheritance tax at all.
Elsewhere, the state does not tax Social Security benefits.
Texas
In Texas, the minimum cash wage payment is $7.25 per hour.
Virginia
Virginia is a state that does not tax Social Security income.
Additionally, seniors can take advantage of a deduction up to $12,000 annually against their retirement income.
There is also a homestead exemption of $20,000 on the assessed value of a taxpayers property.
For our full Privacy Policy,click here.
