Retirement Tax Heaven (and Hell)

States With No Income Tax

Don't assume that a state with no income tax qualifies as a tax haven. High sales and property taxes can more than offset the absence of an income tax.

7 States With No Income Tax
Alaska
Florida
Nevada
South Dakota
Texas
Washington
Wyoming
(N.H. and Tenn. tax only dividend & interest income that exceeds certain limits.)
Next: Pensions - Tax Heavens

Pensions - Tax Heavens

Only three states exempt virtually all retirement income (including public and private pension benefits, 401(k) and other retirement-plan distributions, and IRA withdrawals) from state income taxes.

3 Best States for Pensions
Illinois
Mississippi
Pennsylvania


Next: Pensions - Tax Hells

Pensions - Tax Hells

Five states are particularly tough on retirees. Not only do they fully tax most pensions and other retirement income, but most of them also have fairly high top tax brackets.

5 Toughest States for Pensions
California
Connecticut
Nebraska
Rhode Island
Vermont


Next: Social Security Benefits - Tax Heavens

Social Security Benefits - Tax Heavens

36 states and the District of Columbia don't tax Social Security.

36 States That Are Heaven
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin and Wyoming
Next: Social Security Benefits - Tax Hells

Social Security Benefits - Hells

The remaining 14 states tax Social Security benefits to some extent.

14 Tax Hells
Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia. (Iowa will gradually phase out its Social Security tax by 2014, starting in 2008)


Next: Sales Taxes - Tax Heavens

Sales Taxes - Tax Heavens

These five states have no state sales taxes.

Top 5 States
Alaska
Delaware
Montana
New Hampshire
Oregon


Next: Sales Taxes - Tax Hells

Sales Taxes - Tax Hells

These five states each have a state sales tax of 7%, the highest in the nation.

5 Worst States
Indiana
Mississippi
New Jersey
Rhode Island
Tennessee


Next: Property Taxes - Tax Heavens

Property Taxes - Tax Heavens

Based on data from a 2006 Census Bureau survey and Tax Foundation calculations these are the five states with the lowest median real estate taxes.

5 Best States for Propert Taxes
Louisiana
Alabama
West Virginia
Mississippi
Arkansas


Next: Property Taxes - Tax Hells

Property Taxes - Tax Hells

At the other end of the spectrum, these five states have the highest median real estate taxes. (from highest to lowest according to 2006 Census Bureau survey and Tax Foundation)

5 Worst States
New Jersey
New Hampshire
Connecticut
New York
Massachusetts
Also: Retire on Time? Sure You Can

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