Nine states have no income tax at all, so they tax none of your retirement income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Of the other 41 states and D.C., all but eight leave Social Security alone, and most give some break on pensions or 401(k) and IRA withdrawals — the size of that break is where the real differences are. I'm Paul Rodriguez, a licensed insurance producer. Below is every state in one table, each row pulled from that state's own revenue department or statute, with the source linked. Use it to see what your state actually does before you plan a move around it.
How to read the table
Four columns, one question each. State income tax is the rate structure. Social Security is whether the state taxes benefits that are already taxable on your federal return. Pensions covers defined-benefit pension and annuity payments. 401(k) / IRA covers withdrawals from your own accounts, which several states treat differently from a pension. Click a state for the exact dollar limits, age thresholds and the official source. "Partial exclusion" means the state exempts a set amount per person, usually past a certain age, and taxes the rest.
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| State | State income tax | Social Security | Pensions | 401(k) / IRA |
|---|---|---|---|---|
| Graduated 2–5% | Not taxed | Mostly exempt | Partial exclusion | |
Income tax: graduated 2–5% Social Security: not taxed Pensions: Defined benefit plan payments (IRC 414(j)) are fully exempt at any age, as are military retirement pay, federal civil service/railroad/TVA pensions, and Alabama Teachers, Employees and Judicial Retirement System benefits; private defined-benefit pensions are likewise exempt, with no dollar cap or age threshold. 401(k) / IRA / other accounts: 401(k), IRA and other defined-contribution distributions are taxable; taxpayers age 65+ may exclude the first $6,000 of taxable retirement income per person (Schedule RS, Act 2022-292/HB162, effective TY2023). Notes: No 2026 statutory change; the $6,000 age-65 exclusion is the most recent official figure (2025 Schedule RS, filed 2026). Source: www.revenue.alabama.gov · 2026 (page updated 2026-03-27; 2025 Schedule RS) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed; Alaska has no personal income tax. 401(k) / IRA / other accounts: Not taxed; Alaska has no personal income tax. Notes: No state income tax; Permanent Fund Dividend is federally taxable but not state-taxed. Source: commerce.alaska.gov · 2026 (current page) | ||||
| Flat 2.5% | Not taxed | Partial exclusion | Taxed | |
Income tax: flat 2.5% Social Security: not taxed Pensions: U.S. government, Arizona state and Arizona local government pensions get a subtraction of up to $2,500 per taxpayer (no age test); military retired/retainer pay is 100% exempt for tax years after 2020; private-employer pensions are fully taxable. 401(k) / IRA / other accounts: 401(k) and IRA withdrawals are fully taxable at 2.5%; no exclusion and no age threshold. Notes: Flat 2.5% rate in effect since TY2023; full military pension exemption under A.R.S. 43-1022(26). Source: azleg.gov · 2026 (current statute, A.R.S. 43-1022) | ||||
| Graduated 0–3.7% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 0–3.7% Social Security: not taxed Pensions: Employer-sponsored pension income gets a $6,000 exclusion per taxpayer (spouse gets own $6,000); military retirement pay is 100% exempt since TY2018; exclusion cannot be combined with the Low Income table or the '65 Special' box. 401(k) / IRA / other accounts: Traditional IRA and 401(k)/employer-plan distributions qualify for the same $6,000 exclusion only if received at age 59½ or later (or due to death/disability); amounts above $6,000 are taxable. Notes: HB1001 (2026 special session) cut the top rate from 3.9% to 3.7% retroactive to Jan 1, 2026; the $6,000 exclusion figure is from DFA Subject 206 (rev. 2023) and is unchanged. Source: www.dfa.arkansas.gov · 2023 (rev. 2023-02-24); rate per 2026 DFA withholding formula | ||||
| Graduated 1–12.3% | Not taxed | Taxed | Taxed | |
Income tax: graduated 1–12.3% (plus 1% mental-health surtax over $1M, 13.3% top) Social Security: not taxed Pensions: Public and private pensions are fully taxable as ordinary income with no age-based exclusion; military retirement pay is taxable, except qualified taxpayers may exclude up to $20,000 of military retirement/SBP pay for TY2025–2029. 401(k) / IRA / other accounts: 401(k) and IRA withdrawals are fully taxable (nondeductible basis recovered tax-free); no exclusion, no age threshold; California adds a 2.5% early-distribution tax before 59½. Notes: New $20,000 military retirement exclusion runs TY2025–2029; Tier 1 and Tier 2 railroad retirement benefits are also exempt. Source: www.ftb.ca.gov · 2025 (FTB Pub. 1005, 2025 tax year) | ||||
| Flat 4.4% | Partially taxed | Partial exclusion | Partial exclusion | |
Income tax: flat 4.4% Social Security: partially taxed (age 65+: fully subtracted; age 55–64: fully subtracted if AGI ≤ $75,000 single / $95,000 joint, otherwise only within the $20,000 pension cap; under 55: taxed) Pensions: Pension/annuity subtraction of $20,000 (age 55–64) or $24,000 (age 65+) per taxpayer; under 55 only death-benefit income qualifies (capped $20,000); public and private pensions treated the same. 401(k) / IRA / other accounts: Taxable IRA (traditional/SEP/SIMPLE) and 401(k) distributions count toward the same $20,000/$24,000 subtraction; federally premature distributions (before 59½) do not qualify. Notes: Statutory rate is 4.4%; SB24-228 allows temporary TABOR-triggered cuts to 4.25% only when surplus thresholds are met, so confirm with the 2026 DR 0104 instructions when published. Source: tax.colorado.gov · 2025 (Income Tax Topics, rev. Jan 2025) | ||||
| Graduated 2–6.99% | Partially taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 2–6.99% Social Security: partially taxed (100% exempt if federal AGI < $75,000 single/MFS or < $100,000 joint/HOH; above that, no more than 25% of benefits taxable) Pensions: Public and private pension/annuity income is 100% deductible if AGI is below $75,000 (single) / $100,000 (joint), phasing out to zero at $100,000 / $150,000; military retirement pay is 100% deductible at any income; no age test. 401(k) / IRA / other accounts: IRA distributions (non-Roth) are 100% deductible beginning TY2026 (75% in 2025) subject to the same AGI thresholds and phase-out; 401(k) distributions fall under the pension/annuity rule. Notes: 2026 is the first year the IRA deduction reaches 100% under the 2021 phase-in schedule. Source: prdext2.cga.ct.gov · 2025 (OLR Report 2025-R-0152, 2025-09-22) | ||||
| Graduated 2.2–6.6% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 2.2–6.6% Social Security: not taxed Pensions: Age 60+: up to $12,500 per person of pension plus eligible retirement income excluded; under 60: up to $2,000 of pension income, or up to $12,500 of U.S. military pension income (TY2022+); public and private pensions treated the same. 401(k) / IRA / other accounts: 401(k), IRA, Keogh and 457 distributions count as 'eligible retirement income' within the $12,500 exclusion only at age 60+; under 60 they are fully taxable. Notes: Additional $2,500 standard deduction at 65+ and $110 personal credit at 60+; first $2,000 of income is taxed at 0%. Source: revenue.delaware.gov · 2026 (page updated 2026-09-09) | ||||
| Graduated 4–10.75% | Not taxed | Taxed | Taxed | |
Income tax: graduated 4–10.75% (4% to $10,000; 6% to $40,000; 6.5% to $60,000; 8.5% to $250,000; 9.25% to $500,000; 9.75% to $1,000,000; 10.75% above; schedule in effect since TY2022 and used for 2026 estimated payments) Social Security: not taxed (SS and railroad retirement excluded from DC taxable income) Pensions: Private pensions fully taxable at graduated rates with no exclusion. DC government, federal government and military retired pay/pension/annuity income: first $3,000 excluded for taxpayers age 62 or older (D.C. Code §47-1803.02(a)(2)(N)); DC/federal survivor benefits also subtractable; no exclusion for state pensions from other jurisdictions. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable at graduated rates up to 10.75%; no exclusion or age threshold. Notes: No rate or retirement-rule changes for 2026; DC remains among the least favorable jurisdictions in this set for private pension and IRA income because the only exclusion is the $3,000 age-62+ government/military pension exclusion. Source: app.cfo.dc.gov · 2026 (OTR general filing FAQ; 2026 D-40ES booklet rate table; OTR Individual Income Tax Rates page) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed; Florida imposes no personal income tax. 401(k) / IRA / other accounts: Not taxed; Florida imposes no personal income tax. Notes: Personal income tax is constitutionally prohibited (Fla. Const. Art. VII, §5). Source: floridarevenue.com · 2026 (current FAQ) | ||||
| Flat 4.99% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: flat 4.99% Social Security: not taxed Pensions: Retirement income exclusion of $35,000 per person at age 62–64 (or permanently disabled) and $65,000 at 65+; covers pensions, annuities, interest, dividends, capital gains, rental and royalty income plus up to $5,000 earned income; military retirees under 62 may exclude $17,500 plus another $17,500 if Georgia earned income exceeds $17,500. 401(k) / IRA / other accounts: 401(k) and IRA withdrawals are included in the same $35,000 / $65,000 age-based exclusion; amounts above the cap are taxed at 4.99%. Notes: HB 463 (2026) cut the rate from 5.19% to 4.99% retroactive to Jan 1, 2026 and raises the 65+ exclusion to $70,000 beginning TY2027. Source: dor.georgia.gov · 2026 (DOR page; 2026 rate per DOR Important Tax Updates) | ||||
| Graduated 1.4–11% | Not taxed | Mostly exempt | Taxed | |
Income tax: graduated 1.4–11% Social Security: not taxed Pensions: Pensions funded entirely by the employer are fully exempt at any age (state ERS, federal civil service, military, and private defined-benefit plans with no employee contributions); the portion attributable to employee contributions is taxable. 401(k) / IRA / other accounts: Traditional 401(k) and IRA withdrawals are fully taxable; no exclusion, no age threshold. Notes: Act 46 (2024) raises the 2026 standard deduction to $8,000 single / $16,000 joint; Act 24 (2026) adds a 13% top bracket starting TY2027. Source: files.hawaii.gov · 2026 (DOTAX Tax Review Commission presentation, 2026-07-14) | ||||
| Flat 5.3% | Not taxed | Taxed | Taxed | |
Income tax: flat 5.3% Social Security: not taxed Pensions: Pensions are generally taxable; a retirement benefits deduction applies only to CSRS/FSRDS annuities (eligibility established before 1984), Idaho firefighter and police retirement funds, and military retirement, at age 65+ (or 62+ and disabled; military: disabled, 62+, or under 62 and employed), capped at $48,216 single / $72,324 joint for 2025, reduced by Social Security received. 401(k) / IRA / other accounts: 401(k) and IRA withdrawals are fully taxable at 5.3%; no exclusion, no age threshold. Notes: 5.3% flat rate set by HB 40 (2025) and carried into 2026; deduction caps are 2025 figures (2026 inflation-adjusted amounts not yet published). Source: tax.idaho.gov · 2025 (Form 39R instructions, tax year 2025) | ||||
| Flat 4.95% | Not taxed | Not taxed | Not taxed | |
Income tax: flat 4.95% Social Security: not taxed Pensions: All public and private qualified-plan pensions, government and military retirement, and 457 deferred compensation are fully subtracted; no cap, no age threshold. 401(k) / IRA / other accounts: 401(k), IRA and SEP distributions are fully subtracted, including early distributions and Roth conversion amounts; no cap, no age threshold. Notes: One of the few states exempting essentially all retirement income; Publication 120 reissued December 2025. Source: tax.illinois.gov · 2025 (Pub-120, Dec 2025) | ||||
| Flat 2.95% | Not taxed | Taxed | Taxed | |
Income tax: flat 2.95% Social Security: not taxed Pensions: Public and private pensions are fully taxable; military retirement and survivor benefits are 100% deductible (no age test); federal civil service annuities deductible up to $16,000 at age 62+ reduced by Social Security received. 401(k) / IRA / other accounts: 401(k) and IRA withdrawals are fully taxable at 2.95% plus county income tax; no exclusion, no age threshold. Notes: Rate drops from 3.0% (2025) to 2.95% for 2026 and 2.9% for 2027+; counties add 0.5–3% local income tax. Source: www.in.gov · 2025 (Information Bulletin #6, June 2025; rate per DOR Volunteer Handbook) | ||||
| Flat 3.8% | Not taxed | Mostly exempt | Mostly exempt | |
Income tax: flat 3.8% Social Security: not taxed Pensions: Public and private pension and annuity income is fully excluded for taxpayers age 55+ or disabled (and qualifying surviving spouses); military retirement pay is exempt at any age. 401(k) / IRA / other accounts: 401(k) and IRA distributions are fully excluded at age 55+ (or disabled); under 55 they are taxable at 3.8%. Notes: Flat 3.8% confirmed by IDR for TY2026; retirement exclusion effective since TY2023 under HF 2317. Source: revenue.iowa.gov · 2025 (IDR press release 2025-10-21; retirement guidance page rev. 2025-03-13) | ||||
| Graduated 5.2–5.58% | Not taxed | Partial exclusion | Taxed | |
Income tax: graduated 5.2–5.58% (5.2% on taxable income up to $23,000 single / $46,000 joint; 5.58% above) Social Security: not taxed (fully subtracted for tax years after 2023; $75,000 AGI cap removed by 2024 SB 1) Pensions: Federal, Kansas state/local (KPERS) and military retirement benefits are exempt regardless of age; private pensions are fully taxed with no exclusion 401(k) / IRA / other accounts: 401(k)/IRA withdrawals included in federal AGI are fully taxed; no exclusion or age threshold Notes: SB 269 (2025) revenue-trigger rate cuts did not fire for 2026 (Notice 25-06), so 2024 rates remain; residents 65+ get an extra $805 standard deduction. Source: www.ksrevenue.gov · Notice 24-08 (July 2024) and Notice 25-06 (Oct 2025) | ||||
| Flat 3.5% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: flat 3.5% (reduced from 4% by 2025 HB 1 for tax years beginning on/after Jan 1, 2026) Social Security: not taxed Pensions: Up to $31,110 per taxpayer of pension/annuity income excluded (Schedule P), no age threshold; federal, Kentucky state and local government pensions fully exempt if retired before Jan 1, 1998, or proportionally exempt for service before 1998 401(k) / IRA / other accounts: IRA, 401(k) and similar deferred-comp distributions count toward the same $31,110 per-person exclusion; excess fully taxed; no age threshold Notes: The $31,110 cap is statutory and not indexed; military retirement is covered by the same exclusion and the pre-1998 federal service rule. Source: revenue.ky.gov · Schedule P (2023 form; cap unchanged) and KY Acts ch. 1 of 2025 (HB 1) for the 3.5% rate | ||||
| Flat 3% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: flat 3% (effective tax years beginning Jan 1, 2025; standard deduction $12,500 single / $25,000 joint) Social Security: not taxed (R.S. 47:44.2) Pensions: Louisiana state/local system benefits (LASERS, TRSL, LSERS, etc.), federal civil service and military retirement are fully exempt; other pensions are taxable above the $12,000 annual retirement income exclusion for taxpayers 65+ (per spouse if each is 65+) 401(k) / IRA / other accounts: 401(k)/IRA withdrawals are taxable; taxpayers 65+ may exclude up to $12,000 per person of annual retirement income (R.S. 47:44.1), indexed to CPI going forward Notes: Act 11 (2024 special session) doubled the retirement exclusion from $6,000 to $12,000 beginning tax year 2025 and added annual CPI indexing. Source: revenue.louisiana.gov · LDR income tax reform FAQ (2025) and LDR retirement benefits FAQ | ||||
| Graduated 5.8–7.15% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 5.8–7.15% (2026: 5.8% under $27,400 single/$54,850 joint; 6.75%; 7.15% at $64,850+/$129,750+), plus 2% surcharge on taxable income over $1,000,000 single / $1,500,000 joint Social Security: not taxed Pensions: Pension income deduction up to $48,216 per taxpayer (2025 figure, tied to the max Social Security benefit at full retirement age), reduced dollar-for-dollar by Social Security/Railroad Retirement received; phases out above federal AGI of $125,000 single / $187,500 HOH / $250,000 joint; military retirement fully exempt 401(k) / IRA / other accounts: IRA/401(k) and other eligible plan distributions qualify for the same $48,216 deduction (net of Social Security); distributions before age 55 generally do not qualify unless substantially equal periodic payments Notes: 2026 deduction amount not yet published by Maine Revenue Services; it will track the 2026 maximum Social Security benefit at full retirement age. Source: www.maine.gov · MRS 2026 individual income tax rate schedule; pension deduction amount per 2025 Form 1040ME Schedule 1S | ||||
| Graduated 2–6.5% | Not taxed | Partial exclusion | Taxed | |
Income tax: graduated 2–6.5% (2%–5.75% standard brackets; 6.25% on $500,001–$1,000,000 and 6.5% over $1,000,000 effective tax year 2025) plus county income tax Social Security: not taxed Pensions: Pension exclusion up to $40,600 for tax year 2026 ($41,200 in 2025) for taxpayers 65+ or totally disabled, reduced by Social Security/Railroad Retirement benefits; applies to employee retirement plans qualified under IRC 401(a), 403, 457(b); military retirement subtraction $20,000 (55+) / $12,500 (under 55); public safety retirement subtraction $15,000 (55+) 401(k) / IRA / other accounts: Traditional/Roth/rollover IRAs, SEPs and Keoghs do NOT qualify for the pension exclusion and are fully taxed; 401(k) distributions qualify only if the plan is a 401(a)-qualified employee retirement system Notes: Nonrefundable senior tax credit of $1,000 (single, AGI ≤$100,000) or $1,750 (joint/HOH, AGI ≤$150,000) for taxpayers 65+; centenarian subtraction up to $100,000. Source: www.marylandcomptroller.gov · Technical Bulletin 51 (Apr 2025); 2026 cap per Comptroller Pension Exclusion Worksheet | ||||
| Flat 5% | Not taxed | Partial exclusion | Taxed | |
Income tax: flat 5% plus 4% surtax on taxable income over $1,107,750 (2026 threshold) Social Security: not taxed Pensions: Massachusetts state/local contributory pensions, federal (CSRS/FERS/USPS) contributory pensions and U.S. military pensions are exempt; out-of-state government pensions exempt only if that state reciprocates; private pensions and annuities fully taxed 401(k) / IRA / other accounts: Traditional IRA and 401(k) withdrawals are taxed at 5% (IRA contributions previously taxed by MA are recovered tax-free); Roth qualified distributions follow federal treatment Notes: Taxpayers 65+ get a $700 personal exemption per person; federal TSP distributions are fully taxable. Source: www.mass.gov · Updated Jan 12, 2026; rates per mass.gov Massachusetts Tax Rates page (2026) | ||||
| Flat 4.25% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: flat 4.25% Social Security: not taxed Pensions: 2026 completes the 2023 PA 4 phase-in: 100% of public and private pension benefits deductible up to the inflation-adjusted private retirement maximum (2025 limit: $65,897 single / $131,794 joint; 2026 figure pending) for taxpayers born after 1945; taxpayers born 1946–1952 and age 67+ may instead elect the Tier II standard deduction of $20,000 single / $40,000 joint against all income; born before 1946: full public pension deduction, private pension deduction capped 401(k) / IRA / other accounts: Qualified 401(k)/IRA distributions count toward the same retirement subtraction limits (2025: $65,897 / $131,794; 100% in 2026); employee-contribution-only 401(k) portions are generally not eligible Notes: 2025 PA 24 lets taxpayers born after 1952 and age 67+ claim both the standard deduction and the Social Security deduction for tax years 2026–2028 (RAB 2026-1). Source: www.michigan.gov · RAB 2026-1 (2026); 2025 limits shown, 2026 inflation-adjusted limit not yet published | ||||
| Graduated 5.35–9.85% | Partially taxed | Partial exclusion | Taxed | |
Income tax: graduated 5.35–9.85% (2026: 5.35% up to $33,310 single/$48,700 joint; 6.8%; 7.85%; 9.85% at $203,151+/$337,931+) Social Security: partially taxed (simplified method: full subtraction if AGI under $84,490 single/HOH or $108,320 joint, phased out 10% per $4,000 of AGI above; MFS threshold $54,160 with 10% per $2,000; 2025 thresholds, 2026 indexing not yet posted) Pensions: Fully taxed, except a qualified public pension subtraction (PERA, TRA, Police & Fire, State Patrol, certain federal/other-state plans) of up to $13,540 single / $27,080 joint for service not covered by Social Security, phased out above AGI of $103,489 single / $127,319 joint / $73,159 MFS 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxed at ordinary rates; no exclusion or age threshold Notes: Military retirement pay is fully subtractable; the Social Security subtraction uses either the simplified method or the pre-2023 provisional-income method, whichever is greater. Source: www.revenue.state.mn.us · MN DOR page updated Dec 17, 2025; 2026 brackets per MN DOR release Dec 16, 2025 | ||||
| Flat 4% | Not taxed | Not taxed | Not taxed | |
Income tax: flat 4% on taxable income over $10,000 (first $10,000 exempt) for tax year 2026, down from 4.4% in 2025 Social Security: not taxed Pensions: Public and private pensions, annuities and military retirement are fully exempt once plan retirement requirements are met; no age threshold or dollar cap 401(k) / IRA / other accounts: Qualified 401(k)/IRA distributions are fully exempt; early (pre-retirement-age) distributions are not treated as retirement income and are taxed Notes: HB 1 of 2025 (Build Up Mississippi Act) steps the rate to 4% (2026), 3.75% (2027), 3.5% (2028), 3.25% (2029), 3% (2030), then toward 0% subject to revenue triggers. Source: www.dor.ms.gov · MS DOR General Information, Jan 7, 2026 (2026 rate); retirement exemption per Miss. Code 27-7-15(4) | ||||
| Graduated 2–4.7% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 2–4.7% (2025 chart: top 4.7% on taxable income over $9,191; 2026 chart pending, rate held at 4.7%) Social Security: not taxed (100% deductible for taxpayers 62+ or receiving SS disability; income limit removed for tax years 2024+) Pensions: Public pensions (federal, state, local) deductible up to the maximum Social Security benefit ($48,967 for 2026), reduced by any Social Security deduction, no income limit since 2024; private pensions get a $6,000 exemption phased out dollar-for-dollar above Missouri AGI of $25,000 single / $32,000 joint / $16,000 MFS; military retirement fully exempt 401(k) / IRA / other accounts: 401(k)/IRA withdrawals taxable; may count toward the $6,000 private pension exemption subject to the same AGI limits; no age threshold Notes: The 2026 public pension cap of $48,967 is posted on the DOR pension FAQ; SB 3 (2022) revenue triggers could lower the top rate below 4.7% in later years. Source: dor.mo.gov · MO DOR Pension FAQ (tax years 2024+, includes 2026 cap); 2025 Tax Chart | ||||
| Graduated 4.7–5.65% | Taxed | Taxed | Taxed | |
Income tax: graduated 4.7–5.65% (2026: 4.7% up to $47,500 single / $95,000 joint; 5.65% above; drops to 5.4% with wider bracket in 2027 under HB 337) Social Security: taxed (the federally taxable portion is included in Montana taxable income) Pensions: Public and private pensions and military retirement are fully taxed; no pension-specific exclusion since the 2024 tax simplification repealed the former $5,060 partial exemption 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxed at ordinary rates; no exclusion or age threshold Notes: Taxpayers 65+ may subtract an indexed amount from income ($5,660 for 2025; 2026 figure not yet published); long-term capital gains taxed at 3%/4.1%. Source: revenue.mt.gov · MT DOR HB 337 notice (2025) for 2026 rates; senior subtraction per 2025 Form 2 instructions | ||||
| Graduated 2.46–4.55% | Not taxed | Partial exclusion | Taxed | |
Income tax: graduated 2.46–4.55% (top rate 4.55% for 2026 under LB 754; 3.99% in 2027) Social Security: not taxed (100% exclusion for tax years beginning on/after Jan 1, 2025 under LB 873) Pensions: Military retirement 100% excluded (tax years 2022+); all other public and private pensions fully taxed; no exclusion or age threshold 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxed; no exclusion or age threshold Notes: Nebraska has no general retirement income exclusion; Social Security and military retirement are the only retirement-specific exemptions. Source: revenue.nebraska.gov · NE DOR 2022 Legislative Changes (LB 873); 2026 rate per LB 754 (2023) as enrolled at nebraskalegislature.gov | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no state individual income tax) 401(k) / IRA / other accounts: Not taxed (no state individual income tax) Notes: Nevada has never imposed a personal income tax; the state relies on sales, gaming, property and modified business taxes. Source: tax.nv.gov · NV Department of Taxation page, current 2026 | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none (Interest & Dividends Tax repealed for taxable periods beginning after Dec 31, 2024) Social Security: not taxed Pensions: Not taxed (no tax on earned or retirement income) 401(k) / IRA / other accounts: Not taxed Notes: The final Interest & Dividends Tax rate was 3% for 2024; from tax year 2025 onward New Hampshire taxes no individual income, including investment income. Source: revenue.nh.gov · NH DRA Interest & Dividends Tax page (repeal effective 2025) | ||||
| Graduated 1.4–10.75% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 1.4–10.75% Social Security: not taxed Pensions: Retirement income exclusion for taxpayers 62+ (or disabled) with total income of $150,000 or less: up to $100,000 joint / $75,000 single/HOH / $50,000 MFS when total income is $100,000 or less; 50%/37.5%/25% of taxable pension at $100,001–$125,000 and 25%/18.75%/12.5% at $125,001–$150,000; no exclusion above $150,000; military pensions and survivor benefits fully exempt 401(k) / IRA / other accounts: IRA and 401(k) withdrawals (taxable portion) qualify for the same pension exclusion and limits (age 62+, total income ≤$150,000); contributions previously taxed by NJ are recovered tax-free Notes: An additional 'other retirement income exclusion' lets 62+ filers with ≤$3,000 of earned income use any unclaimed portion of the exclusion against other income. Source: www.nj.gov · NJ Division of Taxation, last updated Sept 28, 2026 (2025 return rules; limits unchanged for 2026) | ||||
| Graduated 1.5–5.9% | Partially taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 1.5–5.9% (1.5%, 3.2%, 4.7%, 4.9%, 5.9%; top rate above $210,000 single / $315,000 joint under 2024 HB 252) Social Security: partially taxed (fully exempt if AGI is $100,000 or less single, $150,000 or less joint/HOH/surviving spouse, $75,000 or less MFS; fully taxable above those thresholds) Pensions: Public and private pensions taxable; taxpayers 65+ (or blind) may claim an exemption of up to $8,000 that phases out with AGI (fully eliminated above $51,000 single/joint, $25,500 MFS); armed forces retirement pay and survivor benefit plan payments exempt up to $30,000 (permanent from tax year 2025) 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxed except as covered by the $8,000 age-65+ exemption; no separate retirement account exclusion Notes: 2024 HB 252 restructured brackets effective 2025 (1.5% bottom rate); 2025 SB 497/HB 264 made the $30,000 military exemption permanent and extended it to surviving spouses. Source: www.tax.newmexico.gov · NM TRD Social Security exemption notice (2022 law); military exemption per NMSA 7-2-5.13 (2025) | ||||
| Graduated 3.9–10.9% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 3.9–10.9% (2025–26 budget cut the five lowest brackets by 0.1 point beginning tax year 2026; top 10.9% over $25 million) Social Security: not taxed Pensions: New York State, local government, and federal (including military) pensions fully exempt at any age; private pensions and annuities get the $20,000 per-person pension and annuity income exclusion for taxpayers age 59½ or older (only income received after turning 59½ qualifies in that year) 401(k) / IRA / other accounts: IRA and 401(k) distributions count toward the same $20,000 per-person exclusion at age 59½+; excess fully taxed; unused spouse exclusion is not transferable Notes: New York City residents pay an additional city income tax (3.078%–3.876%); the $20,000 cap is statutory and not indexed. Source: www.tax.ny.gov · NYS Tax Department, updated Oct 20, 2025 | ||||
| Flat 3.99% | Not taxed | Partial exclusion | Taxed | |
Income tax: flat 3.99% (2026; 2026 session law lowers it to 3.49% for 2027–2029, 3.24% for 2030–2032, 2.99% from 2033) Social Security: not taxed Pensions: Bailey-settlement government pensions (TSERS, LGERS, judicial, CSRS, FERS, military) fully exempt if the retiree had five or more years of creditable service as of Aug 12, 1989; military retirement pay and SBP fully deductible for 20+ years of service or medical retirement (2021 law); all other public and private pensions fully taxed with no age-based exclusion 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxed at 3.99%; exempt only if a Bailey-qualified government 401(k)/457 plan the retiree contributed to before Aug 12, 1989 Notes: North Carolina has no general retirement income deduction; the 2026 rate-cut law (S.L. 2026) is the first change to the flat-rate schedule since S.L. 2023-134. Source: www.ncdor.gov · NCDOR tax rate schedules (2026 rate 3.99%); Bailey Decision page (tax year 2025) | ||||
| Graduated 0–2.5% | Not taxed | Taxed | Taxed | |
Income tax: graduated 0–2.5% (2026 brackets: 0% up to $57,625 single / $57,500 joint-equivalent threshold per withholding tables; 1.95% middle bracket; 2.5% over $258,450 single / $168,525 married) Social Security: not taxed (full subtraction of federally taxable benefits for all filers since TY2021; prior AGI thresholds of $50,000/$100,000 repealed by SB 2351) Pensions: Public and private pensions fully taxable at ordinary rates; no general pension exclusion and no age-based deduction. Exceptions: military retirement pay 100% deductible (since 2019); licensed peace officer retirement benefits excluded with 20+ years of service or disability retirement. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable to the extent in federal AGI; no exclusion amount or age threshold. Notes: Three-bracket 0%/1.95%/2.5% structure in effect since TY2023 with annual inflation indexing; 2026 bracket thresholds taken from the 2026 withholding booklet; no 2026 retirement-rule changes identified. Source: www.tax.nd.gov · 2026 (withholding booklet 2026; history page current through 2025 session) | ||||
| Flat 2.75% | Not taxed | Taxed | Taxed | |
Income tax: flat 2.75% on nonbusiness income over $26,050 (0% on the first $26,050); TY2026 is the first year of the single 2.75% rate Social Security: not taxed (taxable SS benefits deducted on the Ohio Schedule of Adjustments) Pensions: Public and private pensions taxable in Ohio AGI; no general exclusion. Nonrefundable retirement income credit of up to $200 per return if modified AGI less exemptions is under $100,000 (credit scales with retirement income, max at $8,000+ of qualifying retirement income); senior citizen credit of $50 per return at age 65+. Uniformed services/military retirement pay and survivor benefit plan payments are fully deductible. 401(k) / IRA / other accounts: 401(k)/IRA distributions taxable if in federal AGI; eligible for the same $200 max retirement income credit (under $100,000 MAGI); early withdrawals do not qualify for the credit; no age-based exclusion. Notes: HB 96 (2025 budget) cut the top rate from 3.5% to 3.125% for TY2025 and to a flat 2.75% for TY2026 and later; the 0% bracket below $26,050 is retained. Source: tax.ohio.gov · 2025 (IT 1040 booklet TY2025; FAQ current; 2026 rate per HB 96 via ohiohouse.gov) | ||||
| Graduated 0–4.5% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 0–4.5% (TY2026 under HB 2764: single 0% to $3,750, 2.5% to $4,900, 3.5% to $7,200, 4.5% above; joint thresholds doubled at $7,500/$9,800/$14,400) Social Security: not taxed (benefits in federal AGI subtracted on Schedule 511-A) Pensions: Up to $10,000 exclusion per person for government/civil service pensions (federal civil service, Oklahoma state/local public systems) and up to $10,000 for other qualified retirement income (401, 403(b), 408 IRAs, 457); combined cap $10,000 per person; no age requirement; capped at amount in federal AGI. Military retirement: 100% exempt since TY2022. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals qualify for the same $10,000-per-person retirement income exclusion (shared with any government pension exclusion); no age threshold; amounts above $10,000 taxed at ordinary rates. Notes: HB 2764 (2025) replaced the 0.25%–4.75% six-bracket schedule with a 0%/2.5%/3.5%/4.5% schedule starting TY2026, with a trigger allowing a further 0.25% across-the-board cut when revenue targets are met (certified each February). Source: oklahoma.gov · 2026 (OTC help center; 2025 Legislative Update PDF for HB 2764 rates) | ||||
| Graduated 4.75–9.9% | Not taxed | Taxed | Taxed | |
Income tax: graduated 4.75–9.9% (2026 estimated indexed brackets: single 4.75% to $4,550, 6.75% to $11,400, 8.75% to $125,000, 9.9% above; joint thresholds $9,100/$22,800/$250,000) Social Security: not taxed (SS and Tier 1 Railroad Retirement subtracted in full) Pensions: Public and private pensions taxable at ordinary rates; no general exclusion. Federal government pension income attributable to service before October 1, 1991 is subtractable (prorated). Retirement income credit of 9% of qualifying pension income for taxpayers age 62+, limited to base of $7,500 single/$15,000 joint reduced by Social Security received and by household income over $15,000; available only if household income plus SS is $22,500 or less single / $45,000 joint (limits not indexed). Military retirement has no separate exemption beyond the pre-1991 federal service subtraction. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable; 401(k), 457 and IRA income counts as qualifying pension income for the age-62+ retirement income credit above (effectively limited to low-income filers). Notes: 2026 rate chart figures are DOR estimates from Publication OR-ESTIMATE 2026; the retirement income credit (ORS 316.157) was under sunset review in the 2025 session (extension cost ~$400K/yr) and should be confirmed for TY2026. Source: www.oregon.gov · 2026 (OR-ESTIMATE 2026; credit rules from Oregon LRO 2025 Tax Credit Review and DOR PIT page) | ||||
| Flat 3.07% | Not taxed | Mostly exempt | Mostly exempt | |
Income tax: flat 3.07% Social Security: not taxed Pensions: Public and private pensions not taxed when paid from an eligible employer-sponsored retirement plan after meeting the plan's retirement age or years-of-service requirements (no fixed statutory age; plan terms control); SERS, PSERS, municipal, federal civil service and uniformed services retired pay all exempt; no dollar cap. 401(k) / IRA / other accounts: 401(k) distributions after plan retirement age exempt; IRA (traditional and Roth) distributions exempt after age 59½ (or on death/disability); premature withdrawals before 59½ are taxable to the extent they exceed previously taxed contributions (cost-recovery method); no dollar cap. Notes: Pennsylvania taxes no retirement income for retirees who meet age/retirement conditions, but local earned income taxes may apply to wages; no 2026 changes identified. Source: www.pa.gov · 2025 (PA PIT Guide, Gross Compensation; REV-581 Personal Income Tax brochure) | ||||
| Graduated 3.75–5.99% | Partially taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 3.75–5.99% (2026: 3.75% to $82,050; 4.75% to $186,450; 5.99% above) Social Security: partially taxed (taxable SS benefits fully excludable once the taxpayer reaches Social Security full retirement age (66–67 by birth year) and federal AGI is at or below $107,000 single/HoH/MFS or $133,750 joint (2025 limits; 2026 limits not yet published); above the limit, taxable SS is fully taxed) Pensions: Pension/annuity modification: up to $50,000 per person (raised from $20,000 starting TY2025) of federally taxable pension, 401(k), 403(b), 457(b) or annuity income excluded if taxpayer has reached SS full retirement age and federal AGI is within the same $107,000/$133,750 limits; joint filers may exclude up to $100,000 if both qualify. Military service pensions 100% deductible with no age or income test (since TY2023). 401(k) / IRA / other accounts: 401(k)/403(b)/457(b) distributions qualify for the $50,000 modification (full retirement age + AGI limits); traditional/Roth IRA, SEP-IRA and SIMPLE-IRA withdrawals do NOT qualify and are fully taxable. Notes: The $50,000 pension/annuity modification took effect TY2025 (up from $20,000); 2026 bracket thresholds are from ADV 2025-22; 2026 modification income limits not yet published, so 2025 limits are shown. Source: tax.ri.gov · 2026 (PUB 2026-01 Retirement Income Guide; ADV 2025-22 Inflation Adjustments for 2026 brackets) | ||||
| Graduated 1.99–5.21% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 1.99–5.21% (TY2026 under H.4216: 1.99% on taxable income under $30,000; 5.21% on $30,000 and above, less $966) Social Security: not taxed Pensions: Retirement income deduction: up to $3,000 under age 65 and up to $10,000 at age 65+ per taxpayer from qualified plans (public and private pensions, 401/403/408/457 plans); separate age 65+ deduction of up to $15,000 per person ($30,000 joint if both 65+) against any income, reduced by the retirement deduction claimed. Military retirement income 100% deductible at any age since TY2022 (reduces the other two deductions). 401(k) / IRA / other accounts: 401(k)/IRA withdrawals qualify for the same $3,000 (under 65) / $10,000 (65+) retirement income deduction, and the age 65+ $15,000 deduction can absorb additional IRA/401(k) income. Notes: H.4216, signed March 30, 2026, replaces the three-bracket schedule (top 6.0% in 2025) with 1.99%/5.21% starting TY2026, decouples from federal standard/itemized deductions with a new SC Income Adjusted Deduction ($15,000 single/$30,000 joint, income-phased), and preserves existing SC-specific deductions; 2026 trigger allows further top-rate cuts from TY2027. Source: dor.sc.gov · 2026 (SCDOR H.4216 notice; 2025 SC1040 instructions for deductions) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no state income tax on public or private pensions). 401(k) / IRA / other accounts: Not taxed (no state income tax on 401(k)/IRA withdrawals). Notes: South Dakota imposes no individual income tax; revenue comes from sales and property taxes. Source: dor.sd.gov · 2026 | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no state income tax on pensions; the former Hall tax on interest/dividends never applied to pension income and was fully repealed for tax years beginning January 1, 2021). 401(k) / IRA / other accounts: Not taxed (401(k)/IRA distributions were never subject to the Hall tax, which is now repealed). Notes: The Hall Income Tax on interest and dividends was repealed effective TY2021, leaving Tennessee with no tax on any individual income. Source: revenue.support.tn.gov · 2021 repeal (TN DOR Hall Income Tax page, current) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no state personal income tax). 401(k) / IRA / other accounts: Not taxed (no state personal income tax). Notes: The Texas Constitution requires voter approval before any personal income tax could take effect; Texas relies on sales and property taxes. Source: tlc.texas.gov · Texas Legislative Council, Texas Taxes Overview (current edition) | ||||
| Flat 4.5% | Partially taxed | Taxed | Taxed | |
Income tax: flat 4.5% (lowered from 4.55% by HB 106 effective TY2025; no 2026 rate change published by the Tax Commission as of the Jan/May 2026 updates) Social Security: partially taxed (benefits in federal AGI are taxed, offset by a nonrefundable Social Security benefits credit equal to the tax on those benefits; since TY2025 (SB 71) the credit phases out at 2.5% of state taxable income above $54,000 single / $90,000 joint-HoH / $45,000 MFS) Pensions: Public and private pensions fully taxable at 4.5%; no exclusion. Retirement credit of up to $450 per person ($900 joint) only for taxpayers born on or before December 31, 1952, phased out at 2.5% of modified AGI above $25,000 single/$32,000 joint/$16,000 MFS; cannot be combined with the SS or military credits. Military retirement credit offsets Utah tax on military retirement pay in AGI (effectively exempt). 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable at 4.5%; only relief is the $450 retirement credit for those born before 1953 (low income phase-out). Notes: SB 71 (2025) raised the Social Security credit phase-out thresholds (from $45,000/$75,000 to $54,000/$90,000) and switched the test to state taxable income; HB 60 adds a 2026 subtraction for repaid Social Security previously taxed. Source: files.tax.utah.gov · 2026 (Utah State Tax Commission Jan 2026 update; TC-40 2025 instructions; incometax.utah.gov retirement credit page) | ||||
| Graduated 3.35–8.75% | Partially taxed | Taxed | Taxed | |
Income tax: graduated 3.35–8.75% (2025 schedule: single 3.35% to $49,400, 6.6% to $119,700, 7.6% to $249,700, 8.75% above; joint 3.35% to $82,500, 6.6% to $199,450, 7.6% to $304,000, 8.75% above; 2026 brackets are inflation-indexed with the same rates) Social Security: partially taxed (full exemption of taxable SS benefits for AGI up to $55,000 single/HoH/MFS or $70,000 joint; phases out to zero at $65,000 single / $80,000 joint; thresholds raised $5,000 by S.51 effective TY2025) Pensions: Public and private pensions taxable; no general exclusion. Military retirement and survivor benefits: 100% exempt for AGI up to $125,000, phasing out at $175,000 (the former $10,000 cap removed by S.51, TY2025+), and may now be combined with the SS exemption. Federal CSRS and other non-SS-covered government retirement systems: first $10,000 exempt for AGI up to $55,000 single / $70,000 joint (phase-out $10,000 above), only one of the SS/CSRS/other-system exemptions may be claimed. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable at graduated rates; no exclusion or age threshold. Notes: S.51 (2025) raised Social Security/CSRS exemption thresholds by $5,000 and uncapped the military retirement exemption up to $125,000 AGI, retroactive to January 1, 2025; 2026 rate schedule PDF not retrievable, so 2025 brackets are shown. Source: tax.vermont.gov · 2025 (VT Dept. of Taxes SS Exemption page TY2025; 2025 Tax Rate Schedules; S.51 as passed) | ||||
| Graduated 2–5.75% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 2–5.75% (2% to $3,000; 3% to $5,000; 5% to $17,000; 5.75% over $17,000; unchanged for 2026) Social Security: not taxed (taxable SS and Tier 1 Railroad Retirement subtracted in full) Pensions: Public and private pensions taxable; no general pension exclusion. Age deduction: up to $12,000 per person for those born on or before January 1, 1939; for those born January 2, 1939 through January 1, 1961 (age 65+), the $12,000 is reduced $1-for-$1 by adjusted federal AGI (AGI minus taxable SS) over $50,000 single / $75,000 married. Military retirement and survivor benefits subtraction: up to $40,000 per eligible spouse for TY2025 and later (phased in from $20,000 in 2023), no age requirement, stackable with the age deduction. 401(k) / IRA / other accounts: 401(k)/403(b)/traditional IRA withdrawals fully taxable at graduated rates; only relief is the income-phased $12,000 age deduction for taxpayers 65+ (born on/before Jan 1, 1961 for TY2025); qualified Roth distributions not taxed. Notes: Military benefits subtraction reached its full $40,000 cap in TY2025 (age-55 requirement removed in TY2024); Virginia is a fixed-date conformity state so verify federal conformity changes for 2026. Source: www.tax.virginia.gov · 2025 (Virginia Tax subtractions page; 2025 Form 760 instructions; Military Benefits FAQ) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no individual income tax). 401(k) / IRA / other accounts: Not taxed; Washington's 7% capital gains excise tax (9.9% on gains over $1 million from 2025) explicitly excludes transactions inside 401(k)s, IRAs, Roth IRAs, deferred compensation and defined benefit/contribution plans. Notes: DOR states Washington currently has no individual income tax, but a 9.9% tax on individuals and joint filers with AGI above $1 million is scheduled to begin in 2028 and could affect very large retirement distributions. Source: dor.wa.gov · 2026 (WA DOR Income tax page; capital gains tax FAQ) | ||||
| Graduated 2.11–4.58% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 2.11–4.58% (TY2026 after the 5% across-the-board cut retroactive to January 1, 2026: 2.11% to $10,000; 2.81% to $25,000; 3.16% to $40,000; 4.22% to $60,000; 4.58% over $60,000; MFS thresholds halved) Social Security: not taxed (TY2026 is the first year of a 100% decreasing modification for all filers; for AGI at or below $50,000 single / $100,000 joint the 100% exemption applied since TY2022, and above those thresholds it phased in at 35% in 2024 and 65% in 2025) Pensions: Public and private pensions taxable; general senior modification of up to $8,000 of income from any source per person age 65+ or permanently disabled (taken as the greater of $8,000 or itemized modifications). Up to $2,000 deduction for WV Teachers Retirement, WV Public Employees Retirement and federal retirement (CSRS/FERS) benefits at any age; 100% exemption for WV state/local police, deputy sheriff and firefighter retirement systems; military retirement pay (DFAS) 100% exempt. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals fully taxable; only relief is the $8,000 age 65+ senior modification per person. Notes: HB 4880 (2024) completed the Social Security phase-out in TY2026 and W. Va. Code §11-21-4j (effective June 12, 2026) cut all 2026 rates by 5% from the prior 2.22%–4.82% schedule, with updated withholding tables for 2026. Source: tax.wv.gov · 2026 (WV Tax Division 2026 Income Tax Rate Cut page; Social Security Modification page; TSD-413) | ||||
| Graduated 3.5–7.65% | Not taxed | Partial exclusion | Partial exclusion | |
Income tax: graduated 3.5–7.65% (four brackets: 3.5%, 4.4%, 5.3%, 7.65%; 2025 Act 15 widened the 4.4% second bracket, brackets indexed for 2026) Social Security: not taxed Pensions: New retirement income subtraction (TY2025+): up to $24,000 per person age 67+ ($48,000 joint if both 67+) of income from qualified retirement plans and IRAs, no income limit, but claiming it forfeits all Wisconsin tax credits for the year. Older subtraction: up to $5,000 per person age 65+ only if federal AGI under $15,000 single / $30,000 joint. Military and uniformed services retirement (including SBP, DFAS pay) 100% exempt; pre-1964 membership in specified Milwaukee/State Teachers/police/fire systems and CSRS exempt; federal TSP not exempt. Age 65+ filers also get an extra $250 deduction plus $700 personal exemption. 401(k) / IRA / other accounts: 401(k)/IRA withdrawals taxable but eligible for the $24,000-per-person (age 67+) subtraction, or the $5,000 (age 65+, low-income) subtraction; amounts above the cap taxed at graduated rates. Notes: 2025 Wisconsin Act 15 (biennial budget) created the $24,000/$48,000 age-67+ retirement income exclusion starting TY2025 and expanded the 4.4% bracket; the credit forfeiture rule means filers must compare the exclusion against credits (e.g., homestead, married couple credit). Source: www.revenue.wi.gov · 2026 (Publication 126, rev. 1/26; DOR Retired Persons FAQ) | ||||
| None | Not taxed | Not taxed | Not taxed | |
Income tax: none Social Security: not taxed Pensions: Not taxed (no individual income tax). 401(k) / IRA / other accounts: Not taxed (no individual income tax). Notes: Wyoming has neither an individual nor a corporate income tax; a property tax refund program for seniors is the main state-level retiree relief. Source: www.wyo.gov · 2026 | ||||
Rates and limits are for tax year 2026 where the state has published them, otherwise the most recent official figures, with the year noted in each row. Last reviewed October 27, 2026.
States with no income tax on retirement
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no personal income tax, so Social Security, pensions and 401(k) or IRA withdrawals are not taxed at the state level, period. New Hampshire joined the list for 2025 when it repealed its tax on interest and dividends. Washington is the one to read carefully: no income tax, but a 7% excise tax on long-term capital gains over roughly $270,000–280,000 a year (inflation-indexed), which can touch a retiree selling a business or a large taxable position.
Four more states tax wages but exempt most or all retirement income: Illinois (all qualified-plan, pension, 401(k) and IRA income), Mississippi (all qualified retirement income, as long as it is not an early withdrawal), Pennsylvania (pensions and plan distributions after the plan's retirement age) and Iowa (all of it from age 55). For a retiree with no wages, those four behave almost like the no-tax nine.
States that tax Social Security
Eight. Colorado, Connecticut, Minnesota, New Mexico, Rhode Island, Utah and Vermont tax some benefits, and each has an income threshold below which the benefit is fully exempt; most retirees in those states fall under the threshold. Montana is the only state that simply includes the federally taxable portion with no state-level break. West Virginia finished its phase-out for 2026, Nebraska and Kansas finished theirs earlier, and Missouri's exemption now has no income limit. The trend for twenty years has been states dropping this tax, not adding it.
The number that actually matters
The column that fools people is the first one. A "graduated 1–12.3%" rate in California sounds like a 12.3% tax; for a couple with $80,000 of retirement income it is an effective rate near 2%, after the standard deduction and senior credit. Arizona's flat 2.5% is lower than almost any graduated state's top rate, but Arizona exempts nothing from 401(k) withdrawals, so a retiree with a big IRA pays 2.5% on every dollar, while a Georgia retiree over 65 with the same IRA pays 4.99% on nothing until the $65,000 per-person exclusion is used up. Run your own numbers: take last year's retirement income, apply your state's exclusion from the table, and multiply what is left by the rate. That is your state tax. For most households it is a smaller number than they feared, and a smaller number than their fund fees.
Moving for taxes
I have clients who left Illinois for Texas and clients who left Texas for Illinois. The ones who did it for taxes alone usually found that property tax, insurance, and being a plane ride from their grandchildren cost more than the income tax they saved. The states that look best in this table — Texas, Florida, Tennessee — fund themselves through property and sales tax instead, and a homestead in Houston carries a tax bill that would surprise a retiree from Pennsylvania. Before a move, add up all four: state income tax on your actual retirement income, property tax on the house you would buy, sales tax on what you spend, and the cost of visiting family. Then decide.
If you do move, two things. Establish domicile cleanly — driver's license, voter registration, days in state — because high-tax states audit people who claim to have left. And remember that a 401(k) or IRA is taxed where you live when you withdraw, not where you earned it, so a move before you start withdrawals changes the tax on all of it; a move after changes only what is left.
What is federal and does not change with your state
Federal tax on Social Security, the 10% penalty on withdrawals before 59½, required minimum distributions at 73, the income-tax-free death benefit on life insurance, and the tax-deferred growth inside an annuity all work the same in every state. The state column changes the second bill, not the first. That is why, in a Lifetime Income Audit, I look at the federal side of each account first and the state side second.
Where this data comes from and how to use it
Every row links to the state department of revenue, the state statute, or an official legislative summary — not a news article or a comparison site. I update the table when a state changes its law, and I note the tax year each figure comes from. It is a reference, not advice: exclusions have fine print (age, income phase-outs, which plans qualify), and the state's own instructions or a CPA licensed there decide your case. If your state's row surprised you, that is the right moment to pull your statements and see what you are actually paying.
Related reading
- Lifetime Income Audit: what we review and what you get
- Fixed indexed annuity: lump-sum protection in retirement
- Life insurance in retirement
- IUL and retirement planning by state
Disclosures: state tax information is general, reflects published law and guidance as of the review date, and can change. Thresholds and exclusions depend on filing status, age and income. This page is educational and is not tax or legal advice; consult a tax professional licensed in your state. Paul Rodriguez is a licensed insurance producer (NPN 20452373), not a CPA or attorney.
Which states do not tax retirement income? +
Nine states have no personal income tax and therefore tax no retirement income: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Illinois, Mississippi, Pennsylvania and Iowa (from age 55) tax wages but exempt most or all pension, 401(k) and IRA income.
Which states tax Social Security benefits in 2026? +
Eight: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. All but Montana exempt benefits fully below an income threshold, so most retirees in those states pay nothing on Social Security. West Virginia's exemption reached 100% in 2026.
Does Texas tax retirement income? +
No. Texas has no personal income tax, and the state constitution requires voter approval before one could be enacted. Social Security, pensions and 401(k) or IRA withdrawals are not taxed by the state; federal tax still applies.
Does Florida tax retirement income? +
No. Florida's constitution prohibits a personal income tax, so Social Security, pensions and retirement-account withdrawals are not taxed at the state level.
Are 401(k) and IRA withdrawals taxed differently from pensions? +
In many states, yes. Some states exempt pensions but tax 401(k) and IRA withdrawals (Arizona, Hawaii, Kansas, Maryland, Massachusetts, New York for private plans), while others fold both into one per-person exclusion (Georgia, Kentucky, Delaware, Rhode Island, Wisconsin). Check both columns for your state.
Should I move to a state with no income tax when I retire? +
Only after adding up all four costs: state income tax on your actual retirement income after exclusions, property tax on the home you would buy, sales tax, and the cost of being far from family. No-income-tax states fund themselves through property and sales taxes, and for many households the income-tax savings are smaller than expected.
Where does this data come from? +
Each row links to the state's department of revenue, statute, or official legislative summary, with the tax year noted. The table is reviewed when states change their law. It is educational, not tax advice; confirm your situation with a tax professional licensed in your state.