Retiring in Hershey

Hershey offers retirees direct, in-community access to a genuine Level I Trauma Center academic medical center and a real, comparatively low combined local tax rate.

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Pennsylvania's real retirement-income tax treatment

Pennsylvania fully exempts Social Security and, at normal retirement age, pension/401(k)/IRA income from state tax -- a real, distinctive statewide advantage -- though Derry Township's own 1% EIT applies to EARNED income, not typical retirement-income sources.

Direct, in-community access to a major academic medical center

Penn State Health Milton S. Hershey Medical Center's direct, in-community presence gives retirees genuine, real access to Pennsylvania's only dual-age-group Level I Trauma Center.

A genuinely small-town setting with a global-brand identity

Hershey offers retirees a real, distinctive small-town-with-a-global-brand setting, balanced against the area's real, wide housing-price spread and genuinely car-dependent character.

Key takeaways

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Last reviewed: 2026-08-25. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.