Retirement income tax rates by state
State-by-State Guide to Taxes on Retirees Click on any state in the map below for a detailed summary of taxes on retirement income, property and purchases, as well as special tax breaks for seniors. In addition to the state income tax (which has a top rate of 5.75%), Maryland’s 23 counties and Baltimore City levy additional income taxes ranging from 1.75% to 3.20% of taxable income; per the And while your home is taxed at 10 percent of its assessed value, retirees can qualify for the Homestead Exemption, which means the first $75,000 of its value is tax exempt. State Income Tax: 3 – 5 percent (The highest rate applies to incomes over $10,000.) State Sales Tax: 7 percent; Estate Tax: No; Inheritance Tax: No; Low Tax State #3: Pennsylvania