If you retire in one of these 37 states, you don’t have to worry about your benefits being taxed at the state level:
- New Hampshire
- New Jersey
- New York
- North Carolina
- south carolina
- south dakota
Should You Avoid States That Offer Tax Benefits?
It’s easy to see why seniors would rather avoid having their Social Security income taxed at the state level. But it’s also important to realize that some states that have tax breaks offer other benefits, such as a low cost of living and a temperate climate.
In addition, your goal may be to move closer to your family after you retire. And you shouldn’t necessarily be put off by the idea of state-level Social Security taxes.
For starters, many of the states that have tax breaks also offer exemptions for low and middle earners. Second, there are other steps you can take to lower your overall tax burden in retirement.