Navigating taxes in retirement isn’t always easy. In any case, how your retirement income is taxed relies upon upon upon quite a few components, akin to what kind of income you buy, federal taxes, and which state you reside in. Not all states tax retirement income, and some tax some types of income nonetheless not others. Even inside states, taxes can differ for each sort of retirement income.
This alphabetical pointers provides an abstract of how income from employment, investments, a pension, retirement distributions, and Social Security are taxed in every state and the District of Columbia.
For people who’re considering shifting to a specific state, it’s a good suggestion to investigate how each state handles taxes on retirement income forward of you identify. And even in case you’re not shifting, this pointers might assist give you a picture of your state’s tax panorama for retirees.