Does north carolina tax pensions?

Income from a pension, a 401(k), an IRA and any other type of retirement account are all taxed at the North Carolina state income tax rate of 5.499%. Unlike many other states, North Carolina does not allow deductions on any type of retirement income. read more

Currently, North Carolina has a generous exemption of $5.25 million per person that matches the federal estate tax exemption. North Carolina’s move will bring the tally of states where you have to worry about a separate state estate or inheritance tax down to 19 states–plus the District of Columbia. read more

No-Tax States for Government Pensions The type of pension you have determines if a state taxes it. Eight states with income tax do not make retired military personnel pay it on their pensions: Alabama, Kansas, Massachusetts, New Jersey, Hawaii, Wisconsin, Louisiana and Michigan. read more