PA Retirement Taxes

Why do so many retirees love Pennsylvania? While there are plenty of reasons to spend your golden years in the Keystone State, such as easy access to major cities like Philadelphia and New York City, not to mention surrounding yourself with important historical significance, one huge advantage is Pennsylvania’s retirement tax-friendliness.

Pennsylvania is very tax-friendly towards retirees. Some of the retirement tax benefits of Pennsylvania include:

• Retirement income is not taxable: Payments from retirement accounts like 401(k)s and IRAs are tax exempt. PA also does not tax income from pensions for residents aged 60 and over.
• Social Security income is not taxable: Just like with a pension, in Pennsylvania, Social Security is tax exempt.
• Pennsylvania has the lowest flat tax rate in the country: At just 3.07%, PA has the lowest flat tax rate in the United States. This means your dollar stretches further!
• Property Tax/Rent Rebate Program: Pennsylvania provides a rebate to eligible retirees and people with disabilities ranging from $380 to $1,000.

In addition to the tax advantages offered to retirees in Pennsylvania, the cost of living is also slightly below the national average, and the average sales tax rate is just 6.17%.

Should You Consider Moving to a Retirement Community in Pennsylvania?

Pennsylvania is a fantastic place to retire, with all four seasons as well as excellent outdoor and cultural activities. Not only that, but PA is home to some amazing retirement communities for active seniors. And while you may think you’d like to stay in your home, you should know that in many cases, moving to a continuing care retirement community is more cost effective than aging in place, and ensures that healthcare will be covered should you ever need a higher level of care. To learn more, and get pricing information on Pennsylvania retirement communities, choose a community below and download a free information and pricing kit: