39 States That Don't Tax Social Security Benefits
For many retirees, Social Security benefits -- or at least some of them -- are subject to federal income tax. Depending on your income after retirement, you may have to pay federal income tax on as much as 85% of your Social Security income.
But what about state taxes? Are you going to pay tax on your Social Security benefits to the IRS and pay even more tax when you file your state tax return?
The short answer is it depends where you live. Some states tax Social Security income, and others don't. Here's a rundown of the states that don't tax Social Security, those that do, and what to keep in mind when looking at your potential tax situation after retirement.
Source Fool.com
