In Pennsy I pay no tax on pensions, IRA Disributions or SS payments but they do tax annuity payouts - go figure. Sales tax is 6% but I pay big property taxes, about $6300 a year for a 2800 sq ft home on 1.5 acres. 5K of the tax is for schools. School tax is set by the district school boards and there are more than 510 of them here. It's crazy but the unions have the legislature in their pockets and every year there is legislation introduced to reform it but every year it gets to the floor too late in the session to vote on, but "next year we'll really take action ...."