10 States Cut Taxes on $90,000 Pensions by Up to $12,000 a Year
Updated
Updated · 24/7 Wall St. · May 29
10 States Cut Taxes on $90,000 Pensions by Up to $12,000 a Year
2 articles · Updated · 24/7 Wall St. · May 29
Summary
$90,000-a-year retired couples can save roughly $5,000 to $12,000 annually by living in the most retirement-friendly states instead of high-burden states such as New York or New Jersey.
Florida, Wyoming, Nevada, South Dakota, Texas, Alaska, Tennessee, Mississippi, Alabama and Pennsylvania rank best when comparing pension income taxes, property taxes, sales taxes and estate or inheritance taxes.
Wyoming and Alaska offer the cleanest overall tax picture because they pair no pension tax with relatively low sales-tax pressure, while Florida also benefits from no income tax and lower property taxes than Texas.
Headline savings narrow in some no-income-tax states: Tennessee has a 9.55% average combined sales tax, Texas property taxes average 1.74%, and Pennsylvania exempts pensions but taxes inheritances for many non-spouse heirs.
New York and New Jersey remain costly benchmarks, with New York’s total annual burden estimated at $10,000 to $14,000 and New Jersey hit especially hard by the nation’s highest average property-tax rate.