Question 105: I'm about to decide where to move to. Can you tell me which states exempt Railroad Retirement payments from income taxes?
Answer: The following nine states do not have personal income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
The following 14 states have personal income taxes but generally exempt retirement benefits from taxation: Alabama, Hawaii, Illinois, Kansas, Kenrucky, Louisiana, Massachusetts, Michigan, Mississippi, New York, North Carolina, Oregon, Pennsylvania, and Wisconsin.
Other states with personal income taxes might exempt a portion of Railroad Retirement payments.
Before making such an important decision, you should personally confirm the income tax status of Railroad Retirement payments with the state agency administering its income tax program.