If you are collecting your United States Social Security pension, you are probably still living in the United States. There are many options for living abroad with just the SSA pension, but the most common is to continue living in some of the States. If you’ve ever wondered if the States are equal tax-wise the short answer is no. And below we will look at an expansion of that answer to better understand some aspects of Social Security.
The state we live in matters a lot in terms of having more pension each month. If you have to pay more taxes you will have less money for your monthly expenses. That is why this aspect is so important. To have a higher purchasing power take note of the states where you can have a slightly higher Social Security pension.
States where you can get a higher Social Security pension
Your Social Security pension will depend on several factors such as the age at which you apply for it. Another important factor is your salary as a worker for 35 years. You can consider these variables before you apply for retirement. When you apply for retirement, none of that can be changed anymore, so it is important to know if you can live better in some states than in others.
The only factor we can change when we have our Social Security is the amount of taxes we pay. We cannot choose exactly how much we want to pay, but we can choose where we live. In these states there are no state taxes to pay, so you can save a great deal of money on your monthly SSA check.
List of States Where You Don’t Pay Retirement Pension Taxes
Despite not paying state taxes in these places remember that we do have to pay federal taxes whenever we have the obligation. So we are not 100% exempt from paying taxes, but any kind of savings in these cases is always welcome.
Countries with no state Social Security taxes:
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- South Carolina
- South Dakota
Therefore, if you live in a State that does not appear on this list you will have to pay the corresponding State Social Security. Knowing this, we can decide which is the best option for us to live and where we can have a more peaceful retirement with greater purchasing power.