PHILADELPHIA (CBS) – A recent article by the personal finance and business advice website http://kiplinger.com/ ranked the top 10 “retiree friendly” states. Out of the tri-state area, only Pennsylvania made the cut. A local expert explains.
Vito Cosmo, Director of State and Local Taxes at Grant Thornton in Center City, says it was not an error. Pennsylvania really is a great place for retirees to live.
“Pennsylvania does not subject retirement income to the personal income tax. Retirement income includes IRA’s, company sponsored retirement plans and social security … none of that is taxable so long as the person is actually severed from service, is retired and met certain conditions under the statues,” Cosmo said.
One aspect mentioned was property taxes. Cosmo says lower-income earners are able to enjoy property tax rebates.
“While your retirement income is not subject to tax, say your interest and dividends is subject to tax. It’s only subject to tax at a low rate of 3.07 percent which is one of the lowest rates in the country. There’s also for lower-income earners and you’d be surprised as to who would become a lower-income earner. That they would come under a special tax forgiveness,” Cosmo said.
Reported by Michelle Durham, KYW Newsradio