State Retirement Income Tax. Some States exempt all or a portion of retired pay from income taxation. In all States, disability payments received from VA and all Social Security payments are exempt from taxation. State income tax, where applicable, is not withheld from retired pay unless a state has entered into an agreement with the Department of Defense to permit finance centers to withhold state income tax.
http://www.military.com/benefits/military-pay/state-retirement-income-tax.html
But estate-tax exemptions in some states are lower than the federal estate-tax exemption, which for 2014 is $5.34 million. In Minnesota, for instance, estates larger than $1.2 million are subject to state estate tax in 2014, gradually rising to $2 million by 2018.
http://www.kiplinger.com/article/retirement/T055-C000-S004-retirees-watch-out-for-the-state-tax-bite.html
As of 2015, Nebraska, which now taxes benefits the way Uncle Sam does, joins this group. Starting next year, Nebraskans whose adjusted gross income is $58,000 or less if married filing jointly, or $43,000 or less for all other filers, will avoid having to pay state income tax on Social Security.
http://www.kiplinger.com/article/retirement/T055-C000-S004-retirees-watch-out-for-the-state-tax-bite.html
While some states tax pension benefits, only 14 states impose tax on Social Security income, according to CCH. Those include Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.
http://www.marketwatch.com/story/the-most-tax-friendly-states-for-retirees-2013-02-21
Some states offer tax breaks on certain categories of retirement income. Kansas, for example, exempts in-state public pensions but taxes all private retirement income. Alabama excludes private pensions but taxes distributions from defined-contribution plans, such as 401(k)s.
http://www.kiplinger.com/article/retirement/T055-C000-S004-retirees-watch-out-for-the-state-tax-bite.html
Other states exclude a set amount of retirement income from taxation. These amounts vary greatly, from a few hundred bucks to thousands of dollars. Georgia offers the largest retirement-income exclusion, at $65,000 for a taxpayer 65 or older (couples can exclude $130,000).
http://www.kiplinger.com/article/retirement/T055-C000-S004-retirees-watch-out-for-the-state-tax-bite.html
Those include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two other states—New Hampshire and Tennessee—impose income taxes only on dividends and interest (5% for New Hampshire and 6% for Tennessee for 2012 and remain the same in 2013), CCH said.
http://www.marketwatch.com/story/the-most-tax-friendly-states-for-retirees-2013-02-21
While the federal government taxes up to 85% of Social Security benefits, the majority of states exclude Social Security from state income tax. Iowa is the newest member of that group—as of 2014, Iowa has completely phased out its state tax on Social Security benefits.
http://www.kiplinger.com/article/retirement/T055-C000-S004-retirees-watch-out-for-the-state-tax-bite.html
State Retirement Income Tax. Military.com. Some States exempt all or a portion of retired pay from income taxation. In all States, disability payments received from VA and all Social Security payments are exempt from taxation.
http://www.military.com/benefits/military-pay/state-retirement-income-tax.html
States Without Personal Income Tax. Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming do not have a personal income tax. Two others, New Hampshire and Tennessee, tax only dividend and interest income.
http://www.military.com/benefits/military-pay/state-retirement-income-tax.html
what states tax retirement income
Kansas has a tax on retirement income. The state's tax retirement income refers to some states exempt all or a portion of retired pay from income taxation. Kansas is a state that tax on retirement income.