Would also be good to include state treatment of HSA accounts. California, for instance, taxes HSA dividends and asset sale “profit” (where there are capital gains) as ordinary income.

Illinois doesn’t tax retirement accounts (including Roth conversions) or social security. This has a significant impact on large amount of my plan (4.95%)

More links:
https://www.bankrate.com/retirement/states-that-dont-tax-retirement-income
https://smartasset.com/retirement/illinois-retirement-taxes

I think I found a partial workaround for my situation in IL. I added a “tax consequence” on my Retirement milestone with a (fake) move to TX to get rid of the state income taxes after retirement. Then, in that same tax consequence, I added a 4.95% modifier to capital gains page under the “estimate for me” section. Since IL doesn’t tax retirement income, but will tax the brokerage capital gains in retirement, I think this workaround just about covers it. Note: I don’t see the modified capital gains taxes in the “effective brackets” or “rate progression” sections of the tax analytics screen, and they’re not attributed to the state anywhere, but the state capital gain tax does appear to go into the tax chart as added capital gains tax. So the total overall numbers are adjusted and it seems good enough to get a more accurate tax forecast for now. I’d still like to see this improved of course. It still isn’t good for pre-retirement Roth conversions, but I’m hopefully retiring soon anyway. If anyone thinks there is an issue I missed with my workaround, let me know.

Interesting work around. I like it!!!

Now that said, my situation doesn’t fit this perfect and needs a nuanced treatment when Kyle finally implements more state deduction control:

That situation is that Virginia applies a “subtraction” before deductions for Military Retirement pay. That subtraction is NOT index to inflation. So ignoring the “subtraction” vs deduction question as a detail Kyle might need to ignore for simplicity, I still need this modeled as an actual State-Only deduction in actual dollars.

Which is another way of saying, just adding a check-box of sorts to the already existing “Tax Deduction” card to designate it as only applying to State and not federal.

To me this is a critical feature of the overall planning process. Income/expense/investments relatively simple in an excel spreadsheet… starting to bring in tax consequences and maximize income using various tax strategies (including the state you live in) is a massive value add imho.

Moving states to avoid taxes in retirement is a popular strategy! Whether a state taxes retirement income (and which types) is an important feature. Please add!