Best States, Worst States For Dividend Lovers (2024)

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Best States, Worst States For Dividend Lovers (2024)

FAQs

What is the best state to live in for dividend income? ›

Good places for dividend-loving retirees would be the seven states that don't tax dividends: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming.

What is the most tax-friendly state to live in? ›

According to the updated MoneyGeek analysis, the most “tax friendly” state overall was Nevada, where the median family owes about 3% of its income in taxes. Meanwhile, 13 states earned either a D or F grade for tax burdens. For some of those states, like Oregon, high personal income tax rates are to blame.

What is the most tax-friendly state for retirees? ›

Florida. Florida is ranked as very tax-friendly toward seniors. Florida has no state income tax. This means that there is no state income tax on Social Security benefits, distributions from retirement accounts such as IRAs or 401(k)s, or pension benefits from public or private pensions.

What state has the lowest tax burden? ›

States with the lightest tax burden:

Alaska: 5.06% Delaware: 6.12% New Hampshire: 6.14% Tennessee: 6.22%

What is the hardest state to live in financially? ›

California has the largest number of unemployed persons at 1.6 million and an unemployment rate that ranks in the top five in the nation. Additionally, its cost of living is 34.5% above the national average. The debt-to-income ratio in the Golden State is also relatively high compared to the majority of U.S. states.

What state has the best pay and lowest cost of living? ›

South Dakota is among the states with the highest minimum wage and low cost of living, with housing and utilities costing an estimated 15% less than the national average in the US. The minimum wage in the state is set to increase 40 cents from January 1, 2024.

What is the best state to retire in 2024? ›

Florida is the No. 1 state to retire in 2024—No. 2 is nearly 2,000 miles away
  • Affordability, which considered factors such as cost of living and tax benefits.
  • Quality of life, which looked at metrics like weather and the share of the state's population over the age of 65.
Jan 27, 2024

What state has the lowest tax burden for retirees? ›

Of all the states that won't take a cut of traditional retirement income, Mississippi has the lowest property taxes, with a median tax bill of $1,145. So, Mississippi earns its place as the most tax-friendly U.S. state for retirees.

What is the most heavily taxed state? ›

New York has the highest overall tax burden, while Alaska has the lowest. Maine has the highest property tax burden, while Alabama has the lowest. California has the highest individual income tax burden, while seven states (including Texas, Florida and Washington) have the lowest.

Which states do not tax pensions and Social Security? ›

The following 39 states do not tax Social Security in retirement:
  • Alabama.
  • Alaska.
  • Arizona.
  • Arkansas.
  • California.
  • Delaware.
  • Florida.
  • Georgia.
Apr 16, 2024

What is the best state for seniors on Social Security? ›

1. Iowa. Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the monthly cost of living-rent, groceries, healthcare, utilities, transportation, and any miscellaneous expenses-comes to just under $3,000.

What state is Social Security not taxed in? ›

California. Colorado (as of 2023)

What are the best states to live in without taxes? ›

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not levy state income taxes, while New Hampshire doesn't tax earned wages. States with no income tax often make up the lost revenue with other taxes or reduced services.

What state has no income tax? ›

Eight U.S. states currently have no state income tax whatsoever: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. New Hampshire, the ninth state on our list, only taxes interest and dividend income.

What state has no sales tax? ›

There are five states with no general statewide sales tax: Alaska, Delaware, Montana, New Hampshire, and Oregon.

Which US state taxes only interest and dividend income? ›

New Hampshire exclusively taxes dividend and interest income while Washington only taxes capital gains income. Seven states levy no individual income tax at all. Of those states taxing wages, 12 have single-rate tax structures, with one rate applying to all taxable income.

How do you live tax free from dividends? ›

Your “qualified” dividends may be taxed at 0% if your taxable income falls below $44,625 (if single or Married Filing Separately), $59,750 (if Head of Household), or $89,250 (if (Married Filing Jointly or qualifying widow/widower) (tax year 2023). Above those thresholds, the qualified dividend tax rate is 15%.

Can you live off dividend income? ›

Living off dividends is a financial strategy that appeals to those aiming for a reliable income stream without tapping into their investment principal. This approach has intrigued many investors, from early-career individuals to those nearing retirement.

Is dividend income taxable by state? ›

Most states tax personal dividend income as ordinary income. Thus, states with high income tax rates have the highest taxes on personal dividends.

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