The 7 States with No State Income Tax in 2020 include (Remember the Acronym “WWF TANS”):
Washington –> No State Income Tax or Tax on Retirement Income
Wyoming –> No State Income Tax or Tax on Retirement Income
Florida –> No State Income Tax or Tax on Retirement Income
Texas –> No State Income Tax or Tax on Retirement Income
Alaska –> No State Income Tax or Tax on Retirement Income
Nevada –> No State Income Tax or Tax on Retirement Income
South Dakota –> No State Income Tax or Tax on Retirement Income
PLUS: The 7 States with No State Income Taxes on Pensions include (Remember the Acronym “I TAN MPH”):
Illinois –> Does not tax distributions from 401(k) plans, IRAs or pensions.
Tennessee –> Taxes unearned income less each year by 1% until the tax is eliminated at the start of 2021. Does not tax distributions from 401(k) plans, IRAs or pensions.
Alabama –> Taxes distributions from 401(k) plans and IRAs but not pensions.
New Hampshire –> Taxes dividends and interest but does not tax distributions from 401(k) plans, IRAs or pensions.
Mississippi –> Does not tax distributions from 401(k) plans, IRAs or pensions.
Pennsylvania –> Does not tax distributions from 401(k) plans, IRAs or pensions.
Hawaii –> Taxes distributions from 401(k) plans and IRAs but not pensions.
Please contact the office of Don Fitch Accountancy at (760)567-3110 or Email Don.Fitch@CPA.com if you have any questions or would like additional information.
DON FITCH, CPA
74478 Highway 111 #3
Palm Desert, CA 92260
Toll Free: (877)CPA-Help or (877)272-4357
Cell: (760)567-3110
Fax: (760)836-0968
Email: DonFitchCPA@paylesstax.com
Website: http://www.paylesstax.com
(Updated 02/27/2021 15:59)