Statistics show that 38 out the 50 states give those who contemplate retirement a much-needed break as Social Security benefits are NOT taxable. That is a GOOD thing if you ask me as senior citizens  with lower and middle incomes are shielded from any Social Security taxes. However, if your income falls above a certain amount, you could see a deduction on the Federal portion, however it doesn't amount to an exorbitant sum. it all depends on how much you made in the past while in the working world.

Tax Free Wording & Calculator on Chalkboard

Do you want to avoid paying any type of tax regarding your Social Security benefits? If so, consider your location and we have some GOOD news if you live in our immediate tri-state region. Massachusetts and New York are 2 of the 38 states that will NOT charge any extra taxes. Neighboring New Hampshire has NO state tax and is also included in the mix. But a pair of states in our vicinity WILL tax your Social Security income.

Evgenia Parajanian
Evgenia Parajanian

Connecticut and Vermont are NOT included in this perk, but in the long run, 2 more states will join in on this venture and we hope those aforementioned are on the list. You can minimize your tax burden by exercising the following options: Lowering your tax burden in retirement isn't just about choosing a tax-friendly state. During your working years, consider contributing to tax-advantaged accounts that don't give you an upfront tax break so you can get the tax benefits later on.


Investing in a Roth IRA OR Roth 401(k) is a good option because your withdrawals won't be taxed in retirement, though you won't lower your tax bill for the year you contribute. This income won't count against you for Social Security's purposes, as you can make strong contributions to help shield your future benefits from taxes.


You can also consider a health savings account (HSA) if you have a high-deductible health plan as money stays with you from year to year if you don't use it, and withdrawals are never taxed if they're being used for a qualifying medical expense. Given the high costs of healthcare in retirement, an HSA can provide a tax-free source of income to help with those expenses. This reminder: You'll pay ordinary income taxes on withdrawals from non-Roth retirement accounts.

A man opening wallet looking for some money

BOTTOM LINE: More MOOLAH, MOOLAH, MOOLAH in your pocket and that's a good thing if you ask me!

(Some information obtained in this article courtesy of

READ MORE: See 50 remote jobs that can pay well


More From WSBS 860AM