DALLAS (KDAF) — Texas is one of eight states in the country that don’t have state income tax along with Tennessee, Wyoming, Washington, South Dakota, Alaska, Florida and Nevada.
And according to a report from SmartAsset, that also means that Texas doesn’t tax retirement income. They’ve also shared some helpful facts about retiring in the Lone Star State:
- Texas is tax-friendly to retirees
- Social Security isn’t taxed
- Withdrawals from retirement accounts aren’t taxed
- Wagers are taxed at normal rates and marginal state tax rate is 0%
- Public/private pension incomes aren’t taxed
SmartAsset says, “Eleven states levy no income taxes on retirement income from any source. Others offer resident retirees varying degrees of exemptions from taxation on Social Security, retirement account distributions, pension payments and other types of retirement income. Some of the exemptions are generous enough that many retirees in those states won’t pay any income tax. Details such as the retiree’s income matter and vary by state, so it’s important to check with the state tax office for details before relocating to save on taxes.”
For more information including some tips on retirement and more, click here!