If you want to pay less taxes during retirement, moving to a state that won't tax your retirement income is an option. Some states tax only some types of income, while others don't tax income at all. If your retirement income includes Social Security benefits, distributions from a 401(k) or IRA, or a pension, you won't see a tax bill from the states on this list.
Tax on Retirement Income
However, while these states don't tax "traditional retirement income," you might still have to pay tax on other types of income you earn in retirement, such as from wages, interest, and dividends. Additionally, federal income tax still applies in these states.
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