Why state of residence matters so much in retirement
Unlike your working years, retirement income is portable — you can live anywhere and still collect your FERS pension, TSP withdrawals, and Social Security. That makes state income tax one of the largest controllable costs in retirement: the same $70,000/year of income can net thousands of dollars more per year in a no-tax state than in a high-tax one.
How this comparison works
Nine states charge no state income tax at all, and several more fully exempt federal pension income specifically. For every other state, we apply a flat, disclosed approximate effective rate to your combined pension + TSP + Social Security income — the same classification the FedHorizon report engine uses for your state of residence, just run across all 51 jurisdictions at once instead of one.
See your full retirement picture
State tax is one factor among many — cost of living, healthcare access, and proximity to family usually matter just as much. The FedHorizon Timeline models your full income picture, and the full report lets you enter your actual state of residence for a single-state estimate built into every figure.
Your state tax comparison is one input. Your full report combines pension, supplement, survivor election, and FEHB into one decision.
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