Retirement and State Taxes

by Rojo
(Detroit Michigan)

I will retire this year from the USPS. I want to move to Arizona permanently. Will I have to pay Michigan State Taxes out of my Pension? And will I have to pay Arizona State Taxes out of my pension?

Wendy: First, just have to say I am in the Detroit area too. I am north of Detroit, near Sterling Heights. Small world!

Moving to Arizona makes your pension taxable in AZ. I remember one police officer who was really surprised when he realized that (at tax time... AFTER moving). That was when Michigan pensions weren't yet taxed.

Try Arizona's neighbor, Nevada. My parents have a condo in Las Vegas... and there are lots of retirement communities out there. Tax free too!

This website has a very complete State Income Tax guide.. click on the state and all the information is right there to print out or study.

Best Wishes!

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