PENNSYLVANIA
• Retirement income: No state tax on your 401(k), IRA or pension income except if you retire early.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax: low, flat income tax rate of 3.07% (but municipalities can tax earned income).
• Inheritance and Estate taxes: Has inheritance tax from 4.5 to 15%, depending on a recipient’s relationship to the deceased and their age.
South Dakota
• Retirement income: No state tax on your 401(k), IRA or pension income.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax range: No state income tax.
• Inheritance and Estate taxes: No state inheritance tax or an estate tax.
Tennessee
• Retirement income: No state tax on your 401(k), IRA or pension income.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax: Flat 3% tax on interest and dividends only (Rate goes down 1% in 2020, and 0% from 2021.
• Inheritance and Estate taxes: No state inheritance tax or an estate tax.
Texas
• Retirement income: No state tax on your 401(k), IRA or pension income.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax: No state income tax.
• Inheritance and Estate taxes: No state inheritance tax or an estate tax.
Washington
• Retirement income: No state tax on your 401(k), IRA or pension income.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax: No state income tax.
• Inheritance and Estate taxes: No inheritance tax but has estate tax on estates with a value of at least $2,193,000.
Wyoming
• Retirement income: No state tax on your 401(k), IRA or pension income.
• Social security benefits: No state income tax on your Social Security benefits.
• Income tax range: No state income tax.
• Inheritance and Estate taxes: No state inheritance tax or an estate tax.
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Victor Santos Sy graduated Cum Laude from UE with a BBA and from Indiana State University with an MBA. Vic worked with SyCip, Gorres, Velayo (SGV – Andersen Consulting) and Ernst & Young before establishing Sy Accountancy Corporation in Pasadena, California.
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He has 50 years of experience in defending taxpayers audited by the IRS, FTB, EDD, BOE and other governmental agencies. He is publishing a book on his expertise – “HOW TO AVOID OR SURVIVE IRS AUDITS.” Our readers may inquire about the book or email tax questions at [email protected].
