The States With The Heaviest Tax Burden On Social Security Benefits

Preparing for the tax burden is a very important component of retirement planning. The tax requirements can vary from state to state and this article examines the 13 states that tax Social Security benefits. The tax rates in these states can range and there are different age and income thresholds. Minnesota does not have an income exemption for Social Security taxes and has some of the highest tax rates. Some of the states listed in this article adopt rules that are similar to the federal government’s rules. People who are planning for retirement should meet with an experienced estate planning professional who is familiar with the local tax rules. It is important for retirement tax planning to be done right.

See Zina Kumok, Worst States for Taxes on Social Security Benefits, Investopedia, March 15, 2016.