States That Don't Tax Retirement Income: The 2026 List
Nine states have no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming), meaning all retirement income is tax-free at the state level. Beyond those, several other states exempt specific types of retirement income like Social Security, pensions, or military retirement pay.
This page pulls directly from verified state data files to show you exactly where each state stands. Federal income tax rules are separate and apply regardless of your state; this page covers only state-level treatment. Use the tables below to see the facts, then link through to each state's hub page for full detail.
The 9 states with no income tax
These states impose no broad-based personal income tax. All retirement income - Social Security benefits, pension payments, 401(k) and IRA distributions, and other retirement income - is free from state income tax for residents. Federal income tax still applies.
| State | Income Tax | Note |
|---|---|---|
| Alaska | None | Alaska has no state income tax. All retirement income - Social Security, pensions, 401(k), IRA - is exempt from state tax. Note: Alaska also distributes the Permanent Fund Dividend (PFD) to eligible residents. |
| Florida | None | verified_primary - No state income tax |
| Nevada | None | verified_primary - Nevada has no state income tax. All retirement income including Social Security, pensions, 401(k) distributions, and IRA withdrawals is exempt from Nevada state taxation. |
| New Hampshire | None | New Hampshire has no income tax, so all retirement income (Social Security, pensions, 401(k), IRA) is exempt from state taxation. |
| South Dakota | None | South Dakota has no state income tax. All retirement income - Social Security, pensions, 401(k), IRA - is exempt from state tax. |
| Tennessee | None | verified_primary - Tennessee has no state income tax (Hall Tax fully repealed effective January 1, 2021). All retirement income including Social Security, pensions, 401(k) distributions, and IRA withdrawals is exempt from Tennessee state taxation. |
| Texas | None | verified_primary - No state income tax |
| Washington | None | Washington has no state income tax, so all retirement income (Social Security, pensions, 401(k), IRA distributions) is fully exempt from state taxation. The capital gains excise tax may apply to capital gains realized in retirement accounts upon distribution only if they qualify as long-term capital gains above the threshold - verify specifics. |
| Wyoming | None | Wyoming has no state income tax. All retirement income - Social Security, pensions, 401(k), IRA - is exempt from state tax. |
Note: New Hampshire eliminated its interest and dividends tax at the end of 2024. For tax year 2026, New Hampshire has no personal income tax of any kind.
States that exempt Social Security (among states with income tax)
The following states have a personal income tax but do not tax Social Security benefits at the state level. This list is drawn from theretirementTax.taxesSocialSecurity field in each state's verified data file.
| State | Social Security Taxed? | Pension Treatment |
|---|---|---|
| Alabama | No | partial_exclusion |
| Arizona | No | partial_exclusion |
| Arkansas | No | partial_exclusion |
| California | No | full |
| Colorado | No | partial_exclusion |
| Connecticut | No | full |
| Delaware | No | partial_exclusion |
| District of Columbia | No | partial_exclusion |
| Georgia | No | partial_exclusion |
| Hawaii | No | partial_exclusion |
| Idaho | No | full |
| Illinois | No | exempt |
| Indiana | No | partial_exclusion |
| Iowa | No | exempt |
| Kansas | No | partial_exclusion |
| Kentucky | No | partial_exclusion |
| Louisiana | No | partial_exclusion |
| Maryland | No | partial_exclusion |
| Massachusetts | No | partial_exclusion |
| Michigan | No | exempt |
| Minnesota | No | full |
| Mississippi | No | exempt |
| Missouri | No | partial_exclusion |
| Nebraska | No | full |
| New Jersey | No | partial_exclusion |
| New Mexico | No | partial_exclusion |
| New York | No | partial_exclusion |
| North Carolina | No | partial_exclusion |
| North Dakota | No | full |
| Ohio | No | partial_exclusion |
| Oklahoma | No | partial_exclusion |
| Oregon | No | full |
| Pennsylvania | No | exempt |
| South Carolina | No | partial_exclusion |
| Utah | No | partial_exclusion |
| Virginia | No | partial_exclusion |
| West Virginia | No | partial_exclusion |
| Wisconsin | No | partial_exclusion |
States that do tax Social Security at the state level (based on current data): Maine, Montana, Rhode Island, and Vermont each have their own rules and phase-out thresholds. Check each state's hub page for details.
States that fully exempt pensions (among states with income tax)
These states have a personal income tax but fully exempt pension income from state taxation. "Pensions" here generally includes defined-benefit pension plans; treatment of 401(k) and IRA withdrawals may differ and is noted in each state's data.
| State | Pension Exemption | Social Security Taxed? |
|---|---|---|
| Illinois | Fully exempt | No |
| Iowa | Fully exempt | No |
| Michigan | Fully exempt | No |
| Mississippi | Fully exempt | No |
| Pennsylvania | Fully exempt | No |
States with partial pension exclusions - where a portion of pension income is excluded up to a dollar cap or age threshold - include: Alabama, Arizona, Arkansas, Colorado, Delaware, District of Columbia, Georgia, Hawaii, Indiana, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Missouri, Montana, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Rhode Island, South Carolina, Utah, Virginia, West Virginia, Wisconsin. Check each state's hub page for the specific exclusion amounts, which vary significantly.
Overall picture for retirees
The table below identifies income-tax states where the verified data shows both Social Security and pensions are fully exempt at the state level. These are often described as "tax-friendly for retirees" in broad terms, though other factors (property taxes, sales taxes, cost of living) matter equally for real financial planning.
| State | Social Security | Pensions | State Hub |
|---|---|---|---|
| Alaska | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Florida | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Nevada | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| New Hampshire | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| South Dakota | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Tennessee | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Texas | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Washington | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Wyoming | Not taxed (no income tax) | Not taxed (no income tax) | Hub page |
| Illinois | Exempt | Fully exempt | Hub page |
| Iowa | Exempt | Fully exempt | Hub page |
| Michigan | Exempt | Fully exempt | Hub page |
| Mississippi | Exempt | Fully exempt | Hub page |
| Pennsylvania | Exempt | Fully exempt | Hub page |
This table shows where both major retirement income streams are untaxed at the state level. It does not account for property tax rates, estate taxes, local income taxes, or other costs that affect a retiree's overall tax burden. No ranking or rating is implied; the facts are presented so you can evaluate what matters most to your situation.
What these facts mean for you
State income tax is one piece of the retirement tax picture. Even in a no-income-tax state, you will still pay federal income tax on traditional IRA and 401(k) withdrawals, and you may pay significant property taxes or sales taxes depending on where you live.
Before making any relocation decision based on tax considerations, it is worth working through your full expected tax picture - federal, state, and local - with a qualified tax professional or financial planner. State tax laws also change; the data on this page reflects verified figures for tax year 2026.
For details on how federal taxation of Social Security works, see Is Social Security Taxed in 2026?. For required minimum distributions and how they interact with your overall tax picture, see the RMD Withdrawal Table 2026.