Alabama has a state income tax, but it doesn’t include Social Security benefits in its taxable income calculations. That means you won’t have to pay taxes on your Social Security benefits.
Alaska, also known as the Last Frontier, doesn’t have a state income tax. This can provide significant tax savings and means Alaska won’t tax your Social Security benefits.
Arizona’s state income tax system exempts any federally taxable Social Security benefits you may have. This means your Social Security benefits are tax-free in Arizona.
Arkansas doesn’t tax your Social Security benefits because they aren’t included in this state’s taxable income calculations. For the not-yet-retired, Arkansas state income tax rates range from 0% to 4.7%.
Although California has plenty of state-level taxes, you don't pay state income taxes on your Social Security benefits. As a pre-retiree, your marginal income tax will range from 1% to 13.3% depending on your income.
Delaware’s state income tax system excludes federally taxable Social Security benefits. As a result, you don’t have to pay state income tax on Social Security benefits in this state.
That said, it doesn’t include Social Security benefits in its taxable income so you won’t pay on your benefits at the Washington, D.C. level.
Florida is another state that doesn’t have its own income tax, so your Social Security benefits won’t be taxed there. The state does have a 6% sales tax, with localities adding a little more than 1% to the rate on average.
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