State Taxes
State income tax is automatically applied to a client's Plan, depending on the state in which they reside. This is determined when setting up the family profile or when setting up a primary home. This incorporates relocation — state taxation is automatically updated at the indicated date on the Primary Home Relocation Goal card.
Local Taxes
State Tax details
RightCapital incorporates state-specific tax rates, deductions, and exemptions for all states. We also support certain state-specific rules:
Whether or not Social Security income is subject to state taxes is determined on a state-by-state basis. States that are subject to Social Security taxes include:
CT, CO, KS, MN, MT, NM, RI, UT, VT, WV
For more information on Social Security taxation, refer to our Tax on Social Security article.
Whether or not qualified distributions are subject to state taxes is determined on a state-by-state basis. States that exclude qualified distributions from state tax calculations include:
IL, MS, NH, PA
For clients residing n New York, up to $20,000 in qualified distributions is deducted when calculating state income taxes.
Note: Deduction amounts are combined across both categories.
State | Pension/Annuity Deduction limit | 401(k)/IRA Deduction limit | ||
|---|---|---|---|---|
Arkansas | $6,000 | $6,000 | ||
Colorado | $20,000 | $20,000 | ||
Delaware | $12,500 | $12,500 | ||
Georgia | $65,000 | $65,000 | ||
Hawaii | Tax-free | No Deduction | ||
Illinois | Tax-free | Tax-Free | ||
Iowa | $6,000 | $6,000 | ||
Kentucky | $31,110 | $31,110 | ||
Louisiana | $6,000 | $6,000 | ||
Mississippi | Tax-free | Tax-free | ||
Montana | $4,370 | $4,370 | Exclusion only if Federal AGI is below: Single: $38,605; MFJ: $40,790 | |
New Hampshire | No deduction | Tax-free | ||
New Jersey | $50,000 | $50,000 | ||
New York | $20,000 | $20,000 | ||
Oklahoma | $10,000 | $10,000 | ||
Pennsylvania | Tax-free | Tax-free | ||
Rhode Island | $15,000 | No deduction | Exclusion only if Federal AGI is below: Single: $84,700; MFJ: $105,850 | |
South Carolina | $10,000 | $10,000 |
