Illinois
Illinois’ varied economy, dynamic metropolis of Chicago, and lush farmlands make it an attractive retirement income taxation state. Despite its financial woes, Illinois continues to simplify taxes for seniors, making it a more appealing retirement destination.
Illinois is one of the few states that exempt entire retirement income. Illinois retirees don’t pay state income taxes on Social Security, pensions, or 401(k)s. Illinois’s approach lets retirees extend their savings.
This area provides extra tax incentives for seniors than retirement income exemption. Illinois exempts prescription and non-prescription medications, eligible food, and medical equipment from sales tax. This may save retirees a lot as health care and food are big expenditures.
However, Illinois retirees should be aware of some tax exclusions. The state exempts retirement income but taxes other income at 4.95%. Despite tax-friendly retirement income, Illinois has substantial property taxes. Retirees may be affected by county property tax rates.
There is ambiguous language in the bill that they passed for the “Millionaire’s Tax” that lets them tax pensions, which they will do, guaranteed. The wording is vague enough to allow them to also start taxing Social Security benefits. Stay away from Washington State unless you want to end up destitute.
Good article. Let’s see the government eliminate the federal income tax on capital gains on residential homes. Currently, we pay capital gains tax as a single person on any gain over $250,000 and, as a married couple filing jointly, on any gain over $500,000.
This would help many Americans!
Good article. I only wish the next no tax is on the capital gain of your principal (residential) home. Let’s do away with the $250,000 tax exemption if single and $500,000 if married filing jointly tax exemption and make it a 0% capital gains tax. Inflation is the key culprit in the appreciation of property values and also creates increased costs for all products and services.
Lou Masko, I’m a florida native, and it is entirely untrue that you don’t pay property taxes after 25 years
You forgot the state of Washington. We don’t have a state income tax for people who earn less than $1 million a year
attention imbeciles! Duh, the article is titled “12 States That Won’t Touch Your Pension, 401(k), or Social Security” that means they don’t tax those 3 forms of income…what it doesn’t mean is that you get out of paying property taxes, flood insurance, home insurance, etc…Jesus, how f____n’ stupid can you be!
How come you only showed Alabama show the other states too
I’ve been in my Florida home for 34 years and I’m now 63. I’ve never heard of what you are saying about not paying property taxes after 25 years and being 65. Is this something new ?
you still pay property taxes if you own your home over 25 years. I am 77 and have lived in my home 26 years and pay over 3000 a year in taxes. Get your facts straight.
Thats what I would expect coming from a wanta B USCG sailor. Puddle Jumper DC 2nd class. 😆 🤣 😂 😹