You’re Free! These 5 States Won’t Tax Your Social Security

tax your social security
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4. Indiana

As opposed to some of the other states on our list, the Hoosier State does have its own state-specific tax system. Yet, the state will not tax your Social Security because they do not consider these earnings that come from benefits to be part of your taxable income.

So if you are considering moving to Indiana, rest assured that this state will not start taxing your social security benefits overnight. Another thing that you should be thankful for is the fact that this state also has a great tax percentage when it comes to any wages you would get, regardless of your age. So if you plan to keep on working in retirement, you will be taxed a flat rate of 3.23% on your income that is subject to taxes. Just keep in mind that localities can add their own taxes as well.

The Hoosier State also has virtually no local-imposed sales taxes, and the general state-wide one is 7%, with property taxes being under the median national average.

When it comes to taxes, Indiana is a great state to consider for relocation, especially since it also has four seasons and affordable housing options!

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