5 States with the Highest Taxes on Retirement Income in the US

1. Minnesota

Social Security: Partially Taxable

Pensions: Taxable

401(k) and IRA Distributions: Taxable

Most types of retirement income are taxed in the state of Minnesota. Even Social Security may be partially taxable. According to AARP, taxpayers with taxable income up to $78,000, or $100,000 for a couple, are exempt from paying state taxes on their benefits. Those who earn more than these amounts may qualify for a partial tax break. The state has a graduated state individual income tax, with rates ranging from 5.35% to 9.8%. Making it to the top of our list of states with the highest taxes on retirement income in the US, even the lowest income tax bracket is higher when compared to many other states in the country.

If you wish to check out more states and our detailed analysis of the tax reality in the US, you may go to 20 States with the Highest Taxes on Retirement Income in the US. 

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