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.