State Income Tax
: 3% to 5% State Sales Tax
: 7% Estate Tax/Inheritance Tax
Mississippi turns on its Southern charm for retirees. It not only exempts Social Security benefits from state income taxes, but it is one of only two states that excludes all qualified retirement income -- including pensions, annuities, IRAs and 401(k) distributions -- from state income taxes. Non-retirement income is taxed at a maximum 5%. Property taxes in the low-cost Magnolia State are below the national average, according to the annual 50-state property-tax comparison study conducted by the Minnesota Taxpayers Association. Single-family homes are taxed at just 10% of assessed value, and statewide, property taxes average about $1,070 per $100,000 of a home's market value, according to Kiplinger's calculations. In addition, for residents 65 and older, the first $75,000 of property value is exempt from taxes.
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: Kiplinger’s State-by-State Guide to Retiree Taxes 10 Things You Must Know About Social Security 12 Smart Year-End Tax Moves for 2012 The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.