CRLLS
Thinks s/he gets paid by the post
pb4uski, I can't speak to Vt taxes. You are right ish. Ill tax rate is 4.95% that is based on federal AGI.
Each State gets to decide what deductions are allowed and their own tax rates. Flat tax vs progressive tax rates make comparison dependent on income. To compare one state vs an other requires an assumption of income. Change that assumption and the results of that comparison change. Change your income assumption from 100K to 200K and I believe that Vt taxes will be higher than Illinois
My original point was not Illinois doesn't have high taxes. We do. Just not as high as some might think when it comes to "income" tax, and it currently favors retirees.
rk911, I won't comment on whether Illinois will tax pensions in the future. I am not a prognosticator. I can only deal with what is before me today. Today, pensions are exempt, as are many other retirement incomes. I wonder if your lower effective tax rate situation is primarily due to the Federal deduction being ~2x what it was in 2017. I do know that my 2018 taxes to Illinois is Zero, nil, nada, zilch. This is my first year with no earned income and I had some Roth conversions. And that, I do like.
Each State gets to decide what deductions are allowed and their own tax rates. Flat tax vs progressive tax rates make comparison dependent on income. To compare one state vs an other requires an assumption of income. Change that assumption and the results of that comparison change. Change your income assumption from 100K to 200K and I believe that Vt taxes will be higher than Illinois
My original point was not Illinois doesn't have high taxes. We do. Just not as high as some might think when it comes to "income" tax, and it currently favors retirees.
rk911, I won't comment on whether Illinois will tax pensions in the future. I am not a prognosticator. I can only deal with what is before me today. Today, pensions are exempt, as are many other retirement incomes. I wonder if your lower effective tax rate situation is primarily due to the Federal deduction being ~2x what it was in 2017. I do know that my 2018 taxes to Illinois is Zero, nil, nada, zilch. This is my first year with no earned income and I had some Roth conversions. And that, I do like.