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Mark Miller: Remaking Retirement

How Retirees Are Taxed

Policies on income and property levies can differ starkly from state to state.

The fight leading up to passage of the new tax law featured a controversial battle over deductibility of state and local taxes, with the final version limiting deductibility to $10,000 beginning this year.

The controversy put a focus on differences in tax policy among high- and low-tax states. But the states also differ sharply when it comes to taxing retirees. A few exempt all retirement income from taxes, and many exempt all Social Security income. Many states give seniors a break of some kind on property taxes; policy on taxation of income from pensions, 401(k), and IRA accounts varies widely.

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