"The state has no income tax. That's where I'm moving." I wish had a dollar for each time I heard this. I would already be retired.

It seems that when people get to thinking about retirement, they invariably look at those states that have no income tax or where retirement income is not taxed. I'm a Pennsylvanian by birth and education, and I always knew that my state is one of the best to live because of its tax treatment of retirement income. In fact, Social Security benefits, IRA distributions, public and private pensions are all exempt from Pennsylvania state income tax. Sounds good, but be careful because if you look at the 50 state capitals, Harrisburg, Pennsylvania is one of the most taxing cities for retirees.

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