Which 13 States Don't Tax Retirement Income?

Core Insights - The location of retirement can significantly impact financial outcomes, similar to the importance of location in retail [1] Tax Implications - Living in certain states can lead to substantial tax savings for retirees, as 13 states do not impose state taxes on retirement income [2] - Nine states do not tax any income, while an additional four states do not tax income from retirement accounts [4] - Washington state has a unique tax structure where capital gains are taxed, but it does not classify them as personal income [6] States with Favorable Tax Policies - The nine states without income taxes include Alaska, Florida, New Hampshire, Nevada, South Dakota, and Tennessee [5] - The four additional states that do not tax retirement income are Illinois, Iowa, Mississippi, and Pennsylvania [10] - Early withdrawals from retirement accounts may incur state income taxes in Mississippi and Pennsylvania [8]