Best states for taxes


Q. I was looking at what states are best for retiring when it comes to tax rates. I’ve read that North Carolina doesn’t tax annuities. That’s great for my TSP annuity, but is my Postal Service retirement considered an annuity?

A. Civil service annuities in North Carolina aren’t taxed if you had five years of creditable government service as of Aug. 12, 1989. If you didn’t, they’re taxable.


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Reg Jones was head of retirement and insurance policy at the Office of Personnel Management. Email your retirement-related questions to

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