Pennsylvania has been hailed by Forbes as one of the “Best (Unknown) Retirement Tax Havens” in America and recognized in Kiplinger’s “Best States for Retiree Taxes” in part to its retirement-friendly tax benefits.
Pennsylvania’s personal income tax is a flat 3.07%. Unlike most states, the state does not have a graduated income tax (for example, compared to ranges of up to 5.5% in Maryland, 6.5% in West Virginia and 8.97% in New Jersey). Interest and dividends are taxed at a flat 3.07% as well.
With its income-tax exclusions, Pennsylvania is one of the most generous states to retirees. The following retirement income sources are exempt from the state’s income tax—even if earned in another state:
Here at Country Meadows, we provide our residents with everything they need for Independent Living, Assisted Living or Personal Care, specialized Memory Care or Rehabilitative Services—even Skilled Nursing Care at our Bethlehem campus—all on a vibrant campus with activities, social events, day trips and personalized services. Contact us today to set up a visit or to learn more.
*Federation of Tax Administration, January 2012; Forbes.com “2007 Seven Best (Unknown) Retirement Tax Havens”; Kiplinger Personal Finance Magazine “Best and Worst States for Retiree Taxes,” 11/18/2010.