Some states with no retirement income tax, including no pension or Social Security tax, are Tennessee, Alabama, Florida and Nevada, according to U.S. News & World Report. Others include Alaska, Texas, Mississippi, New Hampshire, Pennsylvania and South Dakota.Continue Reading
The state of Florida not only has no retirement tax, but the state also doesn’t have state income tax, says U.S. News & World Report. There is a low sales tax of about 6 percent, as of 2015. However, there is property tax in Florida, where the average amount paid by homeowners in 2008 was $1,860. In Alabama, the property taxes are considerably lower, where homeowners paid an average of $383 for property taxes in 2008. The sales tax is also lower, at 4 percent. Alaska is the only state with no retirement tax, no state sales tax and no state income tax. Property taxes make up for some of this by being slightly higher than other states.
Mississippi has low property taxes in addition to not having retirement income tax, notes U.S. News & World Report. There is sales tax at 7 percent, as of 2008. New Hampshire doesn’t have retirement or pension tax, but they do have taxes on interest income and dividend income. There is also no sales tax in New Hampshire. Pennsylvania does not have any type of retirement taxes, including not having pension taxes. However, there is a modest sales tax and slightly high property taxes.Learn more about Income Tax