BUSINESS WIRE-When contemplating locations for retirement, warm weather and proximity to family are likely top considerations for most soonto-be retirees. However, calculating the best places to stretch a fixed retirement income also should be top of mind.
Understanding the current state tax treatments of retirement benefits can be a key factor in deciding where to establish new, post-career roots.
According to an analysis by New Yorkbased Wolters Kluwer accounting firm, seven states don't tax individual income-retirement or otherwise-and two other states impose income taxes only on dividends and interest. In the other 41 states and the
Three states exempt pension income entirely for qualified individuals, while 25 states exempt or provide a credit for a portion of pension income. Thirteen states and the
Tax is imposed on
Several states enacted changes in 2017 to their income tax laws for retirement plans:
Maiyland: Retired law enforcement, fire and rescue, or emergency services personnel who are at least 55 years old may exclude up to
state tax reforms effective beginning with 2018 tax year: