Do You Live In A State That Won’t Be Taxing Your Retirement Income?

It probably isn’t surprising to you that taxes can be one of your biggest expenses while in retirement. Of course, this doesn’t make paying all those taxes less painful. The tax burden you bear on your retirement income can vary depending on where you live. Currently, there are just 12 states that take taxes out of your retirement income distributions. While I wouldn’t recommend someone move in retirement to save money on taxes, I would be remiss if I didn’t point out that tax planning doesn’t end once you retire.

Keep reading to find the 12 states that allow you to keep more of your retirement income. Remember that regardless of where in the U.S. you live, you will still owe federal taxes on your retirement income. You may also end up paying taxes to your state in other ways, like sales and property taxes.