Written by Brian Baker, CFA, Bankrate.com

When their working days end in the end, many retirees will think The best place to spend their golden years. Not all countries treat retirement income – such as pension payments or distributions of 401 (k) plans and Iraas In the same way, which makes government and local taxes a major consideration for anyone who is expected to be on a fixed income during this time.

Here is what you need to know about how different countries’ taxes, including the countries that you will not do Pay Absolutely.

Countries that there is no income tax

Retirement distributions from 401 (k) plans Or IRAS is an income for tax purposes.

Fortunately, there are many places that do not contain state income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Woewang

New Hampshire imposes taxes in the past and Profit paymentsBut this tax was canceled starting from the tax year 2025.

Washington has a capital profit tax, although there are exemptions and discounts that may spend or reduce the amount due.

Countries with income tax that do not impose taxes on retirement income

In addition to the nine countries mentioned above that do not contain an income tax at all, four states do not put taxes on retirement income: Illinois, Iowa, Mississippi and Pennsylvania.

Illinois: Illinois receives a 4.95 % flat state income tax, but all retirement income is exempt from paying the tax. This includes pension payments, as well as distributions from Retirement plans Such as 401 (K) S and IRAS. Social security payments are also exempt.

Iowa: As of 2023, Iowa’s residents are no longer more than 55 years of tax on retirement income thanks to A. 2022 Law. The IOWA rate is now a fixed rate of 3.8 % on taxable income after the approval of a new law in May 2024.

Mississippi: The Mississippi state income rates are 0 % on the first $ 10,000 of taxable income and 4.4 % on income is higher than this level for the 2025 tax year, but retirement income is not subject to tax as long as you have met the plan’s requirements. This means that Early distributions of retirement plans It may not be qualified as a retirement income and can be subject to tax and punishment. The tax rate is scheduled to gradually reduce to 3 % by 2030, with a decrease in a decrease until the tax is completely eliminated. The rate will decrease to 4 % in 2026.

Pennsylvania: Pennsylvania receives a personal income tax at a fixed rate of 3.07 %. Taxes are not imposed on retirement income in Pennsylvania as long as the requirements of the plan are met. Withdrawals from retirement plans such as IRAS before reaching the necessary age (59 1/2) may lead to taxes.

Countries that do not impose social security

Do not put forty -one states, in addition to the province of Colombia, the social security income for retirees.

Kansas, Missouri and Nebraska are the three of the most recent states to cancel taxes on social security, while others are in the process of gradual disposal of the tax.