Current Pension
Topics
Taking Out Taxes in Texas
By JOEL L. FRANK
Q.:
When I retire I will be moving to Texas, which has no state
tax. Will I have to pay New York State/City taxes when I start to
withdraw my 457(b) dollars?
J.B.
A.: The tax laws of the state where you are domiciled govern your tax
liability. Texas does not tax 457(b) withdrawals.
The Retired Public Employees' Association has prepared the following chart
dealing with taxation by the 50 state governments. Please double-check with the
taxing authority of the state you will be domiciled in.
The information in the table below was reviewed and found to be accurate, as
of July 1, 2006.
| State |
Income |
Tax N Y |
Tax IRC 457's or |
Tax |
Exclusions |
Comments |
|
Tax |
Pension |
Deferred |
Social |
|
|
|
|
|
Comp. |
Security |
|
|
| Alabama |
Yes |
No |
Yes |
No |
|
|
| Alaska |
No |
No |
No |
No |
|
No Income Tax |
| Arizona |
Yes |
Yes |
Yes |
No |
|
|
| Arkansas |
Yes |
* Yes |
Yes |
No |
* See |
Exclude up to |
|
|
|
|
|
Comments |
$6,000 of Pension Income |
| California |
Yes |
Yes |
Yes |
No |
|
|
| Colorado |
Yes |
* Yes |
Yes |
*Yes |
* See |
* Age 55: exclude up to $20,000 of Pension and/ or
Social Security income. Age 65: exclude up to |
|
|
|
|
|
Comments |
$24,000 of pension and or Social Security. |
| Connecticut |
Yes |
Yes |
Yes |
* See |
* See |
* Social Security excluded if CT1040 line1 is $50,000
single or married filing separately or |
|
|
|
|
Comments |
Comments |
$60,000 for married filing jointly. |
| Delaware |
Yes |
* Yes |
*Yes |
No |
* See |
* Under age 60 exclusion is: $2,000. |
|
|
|
|
|
Comments |
Age 60 and over exclusion for pension & Def. Comp up to
$12,500 combined. |
| Dist. Of Columbia |
Yes |
Yes |
Yes |
No |
|
|
| Florida |
No |
No |
No |
No |
|
No Income Tax |
| Georgia |
Yes |
Yes * |
Yes |
No |
* See |
At age 62 an exclusion of up to $15,000 may be |
|
|
|
|
|
Comments |
allowed. |
| Hawaii |
Yes |
No |
* See |
No |
|
*Contact 1-800-222-3229 for latest information |
|
|
|
Comments |
|
|
|
| Idaho |
Yes |
Yes |
Yes |
No |
|
|
| Illinois |
Yes |
No |
No |
No |
|
|
| Indiana |
Yes |
*Yes |
Yes |
No |
|
*May have county income tax. |
|
|
|
|
|
|
call:317-232-2240 |
| Iowa |
Yes |
*Yes |
Yes |
Yes |
* See |
*May exclude up to either $6,000 or $12,000 depending
on filing status and age. |
|
|
|
|
|
Comments |
|
| Kansas |
Yes |
Yes |
Yes |
Yes |
|
|
| Kentucky |
Yes |
*Yes |
*Yes |
No |
* See |
*Exclusion up to $41,010. Pension & Def Comp |
|
|
|
|
|
Comments |
|
| Louisiana |
Yes |
Yes * |
Yes |
No |
* See |
Maximum Exclusion is $6,000. |
|
|
|
|
|
Comments |
|
| State |
Income |
Tax NY |
Tax IRC 457's or |
Tax |
Exclusions |
Comments |
|
Tax |
Pension |
Deferred |
Social |
|
|
|
|
|
Comp. |
Security |
|
|
| Maine |
Yes |
Yes |
Yes |
Yes |
* See |
No exclusion if Social Security exceeds $6,000. |
|
|
|
|
|
Comments |
|
| Maryland |
Yes |
*Yes |
Yes |
No |
* See |
*Age 65 Exclusion up to $21,500. |
|
|
|
|
|
Comments |
|
| Massachusetts |
Yes |
*Yes |
Yes |
No |
* See |
At age 59-1/2 Pension exclusion of $20,000. |
|
|
|
|
|
Comments |
|
| Michigan |
Yes |
*Yes |
Yes |
No |
* See |
For Single filers Exclusion is $39,570. |
|
|
|
|
|
Comments |
For Married filing Joint exclusion is $79,140. |
|
|
|
|
|
|
Interest, Dividends & Capital Gains: Single:
$8,828 |
|
|
|
|
|
|
Married Filing Jointly: $17,655 |
| Minnesota |
Yes |
Yes |
Yes |
Yes |
|
|
| Mississippi |
Yes |
No |
*No |
No |
|
*If all requirements for this plan have been met. |
| Missouri |
Yes |
*Yes |
Yes |
Yes |
* See |
* Pension exclusion is $6,000 with Adjusted Gross Income
limits. Call 1-573-751-3505 for latest AGI limits |
|
|
|
|
|
Comments |
|
| Montana |
Yes |
*Yes |
Yes |
Yes |
* See |
* Pension exclusion is $3,600 with Adjusted Gross Income
limits of $30,000. |
|
|
|
|
|
Comments |
|
| Nebraska |
Yes |
* Yes |
*Yes |
*Yes |
* See |
*If federal tax is withheld, Nebraska State tax must be
withheld. |
|
|
|
|
|
Comments |
|
| Nevada |
No |
No |
No |
No |
No |
No Income Tax |
| New Hampshire |
No** |
No |
No |
No |
No |
**Income tax on Interest & Dividends. |
| New Jersey |
Yes |
* Yes |
Yes |
No |
* See |
* Provided your gross income for the year does |
|
|
|
|
|
Comments |
not exceed $100,000 and you are age 62 you may exclude for
a Single Filer $15,000, married filing jointly $20,000 or
$10,000 for married filing separately. Contact New Jersey Division of
Taxation @ 1-609-292-6400 for additional exclusion information. |
| New Mexico |
Yes |
Yes |
Yes |
Yes |
* See |
At age 65 up to $8,000 exclusion |
|
|
|
|
|
Comments |
|
| New York |
Yes |
No |
Yes * |
No |
* See |
*Up to $20,000 exclusion per year for Def. Comp &
IRA' S |
|
|
|
|
|
Comments |
|
| State |
Income |
Tax N Y |
Tax IRC 457's or |
Tax |
Exclusions |
Comments |
|
Tax |
Pension |
Deferred |
Social |
|
|
|
|
|
Comp. |
Security |
|
|
| North Carolina |
Yes |
Yes * |
Yes |
No |
* See |
$4,000 Public Pension Exclusion per taxpayer |
|
|
|
|
|
Comments |
|
| North Dakota |
Yes |
Yes |
Yes |
Yes |
|
|
| Ohio |
Yes |
Yes |
Yes |
No |
* See |
Retirement Income Credit $200. |
|
|
|
|
|
Comments |
Senior Citizen Credit. |
| Oklahoma |
Yes |
Yes* |
Yes * |
No |
* See |
Retirement income exclusion up to $7,500. Exclusion |
|
|
|
|
|
Comments |
amount must be in Adjusted Gross Income. |
| Oregon |
Yes |
Yes |
Yes |
No |
|
|
| Pennsylvania |
Yes |
No |
Yes |
No |
|
|
| Rhode Island |
Yes |
Yes |
Yes |
Yes |
|
|
| South Carolina |
Yes |
Yes * |
Yes |
No |
|
|
| South Dakota |
No |
No |
No |
No |
No |
No Income Tax |
| Tennessee |
No ** |
No |
No |
No |
No |
**Income tax on Interest & Dividends. |
| Texas |
No |
No |
No |
No |
No |
No Income Tax |
| Utah |
Yes |
Yes |
Yes |
Yes |
|
|
| Vermont |
Yes |
Yes |
Yes |
Yes |
|
|
| Virginia |
Yes |
Yes |
Yes |
No |
* See |
Age 65 exclusion $12,000. Subject to
income limitations. |
|
|
|
|
|
Comments |
Contact Revenue agency at 1-804-367-8031 for those
limits. |
| Washington |
No |
No |
No |
No |
No |
No Income Tax |
| West Virginia |
Yes |
Yes |
Yes |
Yes |
* See |
An age exclusion up to $8,000 may be deducted. |
|
|
|
|
|
Comments |
|
| Wisconsin |
Yes |
Yes |
Yes |
*Yes |
* See |
Wisconsin taxes up to 50% of Social Security benefit |
|
|
|
|
|
Comments |
|
| Wyoming |
No |
No |
No |
No |
No |
No Income Tax |
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