For all United States citizens, paying taxes during your time as a worker is mandatory. This happens regardless of the state in which you bring or live. But something changes when we enter retirement. When Social Security starts paying your monthly retirement benefit check, living in one state or another is critical to whether or not you pay taxes.
To avoid paying Social Security taxes, you can look at the list of these states. If you live in one of them, you already know you don’t have to pay taxes. However, if you don’t live in one of them, you may want to check to see if you can move. Paying no retirement benefit taxes means considerable savings every month, so we’re looking at some very interesting information.
States where not to pay Social Security taxes
This list of 38 different states is perfect for avoiding paying taxes when you start collecting your Social Security. Then if you live in one of these places, remember that you don’t have to pay taxes, so every month you’ll get some nice benefits that you won’t get in other states where taxes for SSA benefits are mandatory. The order of this list of states is alphabetical:
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- South Carolina
- South Dakota
On the other hand, we have several states where it is mandatory to pay Social Security taxes every year. Consider this list important to avoid tax problems in the future. As in the previous list, this list is in alphabetical order:
- New Mexico
- Rhode Island
- West Virginia
Consult your local office for any questions
Although the general rule is that you do not have to pay Social Security taxes in these states, it is always good to make sure. Then to do so, go to your local office and ask if you have to pay taxes or not. So this way you can rest assured that you won’t have to worry about whether you are really doing things right or not.
As a conclusion, each situation is totally particular, so it can depend on many different factors. The general recommendation is to make sure you go to a local office, but you can also contact an experienced lawyer who can help you and advise you with your individual situation. This is the best way to avoid unpleasant surprises.