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]

Victor Sy, CPA, MBA
Victor Sy, CPA, MBA

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. He retired after 50 years of defending taxpayers audited by the IRS, EDD, BOE and other governmental agencies. He published a book on “How to Avoid or Survive IRS Audits.” Readers may email tax questions to [email protected]

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