Which States Tax Social Security?
Build a sizable nest egg? Check. Purchase a new set of golf clubs? Check. Plan for taxes on your retirement income? Chhhh ... Wait a minute. Plan for what?
Lots of retirees are surprised by the big bite that taxes can take out of their savings. And depending on where you live, the tax hit can be especially painful. In fact, some states even tax Social Security benefits, the most important source of income for many retirees.
The 13 states that tax Social Security are:
- New Mexico
- North Dakota
- Rhode Island
- West Virginia
Kiplinger's tax maps can help. Check out the most tax-friendly states for retirees and the least tax-friendly states for retirees to identify your best place for retirement.