Retirement taxes by state · 2026
9 states tax no retirement income. 8 still tax Social Security. Here is every state.
Social Security, pensions, 401(k) and IRA withdrawals, and what happens to your estate, for all 50 states and DC. Figures come from state revenue departments and the Tax Foundation, current for tax year 2026. The state page for each one carries the rest of the picture: property tax, sales tax, housing, healthcare.
States with no tax on any retirement income
The 9 states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Four states with an income tax exempt retirement income anyway: Illinois and Mississippi exempt all of it, Pennsylvania after age 59½, Iowa from age 55. In those 13 states a 401(k) or IRA withdrawal owes no state tax.
States that tax Social Security
Colorado (SS taxed but up to $24K pension deduction); Connecticut; Minnesota; Montana; New Mexico (Exempt below $100K single / $150K joint (2022 law); taxed above those thresholds); Rhode Island; Utah; Vermont. Most use income thresholds or credits, so lower and middle incomes usually owe nothing. Kansas, Missouri and West Virginia have all ended the tax since 2024.
States with an estate or inheritance tax
16 states plus DC: Connecticut (estate, above $13.61M); Hawaii (estate, above $5.49M); Illinois (estate, above $4M); Kentucky (inheritance); Maine (estate, above $6.8M); Maryland (estate, above $5M); Massachusetts (estate, above $2M); Minnesota (estate, above $3M); Nebraska (inheritance); New Jersey (inheritance); New York (estate, above $6.94M); Oregon (estate, above $1M); Pennsylvania (inheritance); Rhode Island (estate, above $1.77M); Vermont (estate, above $5M); Washington (estate, above $2.193M). Maryland levies both. The federal estate tax exemption is far higher, so for most families the state tax is the one that bites.
Why no income tax is not the whole answer
A state that skips income tax collects property and sales tax instead. Texas has no income tax and a 1.60% effective property-tax rate, about $5,440 a year on its median home. New Hampshire has no income or sales tax and the highest property taxes relative to income in the country. Match the tax mix to how you will actually live: renters and small-home owners do well in no-income-tax states; large-home owners with modest pensions often do better where retirement income is exempt and property tax is low.
Every state, side by side
| State | Income tax | Taxes Social Security | Pension income | 401(k) / IRA withdrawals | Estate / inheritance |
|---|---|---|---|---|---|
| Alabama | Up to 5% | No | Exempt | Taxed as income | None |
| Alaska | None | No | Not taxed | Not taxed | None |
| Arizona | Flat 2.5% | No | Partly exempt | Taxed as income | None |
| Arkansas | Up to 3.9% | No | Partly exempt | Taxed as income | None |
| California | Up to 13.3% | No | Taxed | Taxed as income | None |
| Colorado | Flat 4.4% | Yes · SS taxed but up to $24K pension deduction | Partly exempt | Taxed as income | None |
| Connecticut | Up to 6.99% | Yes | Partly exempt | Taxed as income | Estate (>$13.61M) |
| Delaware | Up to 6.6% | No | Partly exempt | Taxed as income | None |
| Florida | None | No | Not taxed | Not taxed | None |
| Georgia | Flat 5.49% | No | Partly exempt | Taxed as income | None |
| Hawaii | Up to 11% | No | Exempt | Taxed as income | Estate (>$5.49M) |
| Idaho | Flat 5.8% | No | Partly exempt | Taxed as income | None |
| Illinois | Flat 4.95% | No | Exempt | All retirement income exempt | Estate (>$4M) |
| Indiana | Flat 3.05% | No | Partly exempt | Taxed as income | None |
| Iowa | Flat 3.8% | No | Exempt | Exempt for residents 55 and over (since 2023) | None |
| Kansas | Up to 5.7% | No | Partly exempt | Taxed as income | None |
| Kentucky | Flat 4% | No | Partly exempt | Taxed as income | Inheritance |
| Louisiana | Up to 3% | No | Partly exempt | Taxed as income | None |
| Maine | Up to 7.15% | No | Partly exempt | Taxed as income | Estate (>$6.8M) |
| Maryland | Up to 5.75% | No | Partly exempt | Taxed as income | Both |
| Massachusetts | Up to 9% | No | Partly exempt | Taxed as income | Estate (>$2M) |
| Michigan | Flat 4.25% | No | Partly exempt | Taxed as income | None |
| Minnesota | Up to 9.85% | Yes | Partly exempt | Taxed as income | Estate (>$3M) |
| Mississippi | Flat 4.7% | No | Exempt | All retirement income exempt | None |
| Missouri | Up to 4.7% | No | Partly exempt | Taxed as income | None |
| Montana | Up to 5.9% | Yes | Partly exempt | Taxed as income | None |
| Nebraska | Up to 3.99% | No | Partly exempt | Taxed as income | Inheritance |
| Nevada | None | No | Not taxed | Not taxed | None |
| New Hampshire | None | No | Not taxed | Not taxed | None |
| New Jersey | Up to 10.75% | No | Partly exempt | Taxed as income | Inheritance |
| New Mexico | Up to 5.9% | Yes · Exempt below $100K single / $150K joint (2022 law); taxed above those thresholds | Partly exempt | Taxed as income | None |
| New York | Up to 10.9% | No | Exempt | Taxed as income | Estate (>$6.94M) |
| North Carolina | Flat 4.5% | No | Partly exempt | Taxed as income | None |
| North Dakota | Up to 2.5% | No | Partly exempt | Taxed as income | None |
| Ohio | Up to 3.5% | No | Partly exempt | Taxed as income | None |
| Oklahoma | Up to 4.75% | No | Partly exempt | Taxed as income | None |
| Oregon | Up to 9.9% | No | Partly exempt | Taxed as income | Estate (>$1M) |
| Pennsylvania | Flat 3.07% | No | Exempt | Exempt after age 59½ | Inheritance |
| Rhode Island | Up to 5.99% | Yes | Partly exempt | Taxed as income | Estate (>$1.77M) |
| South Carolina | Up to 6.2% | No | Partly exempt | Taxed as income | None |
| South Dakota | None | No | Not taxed | Not taxed | None |
| Tennessee | None | No | Not taxed | Not taxed | None |
| Texas | None | No | Not taxed | Not taxed | None |
| Utah | Flat 4.65% | Yes | Partly exempt | Taxed as income | None |
| Vermont | Up to 8.75% | Yes | Partly exempt | Taxed as income | Estate (>$5M) |
| Virginia | Up to 5.75% | No | Partly exempt | Taxed as income | None |
| Washington | None | No | Not taxed | Not taxed | Estate (>$2.193M) |
| West Virginia | Up to 5.12% | No | Partly exempt | Taxed as income | None |
| Wisconsin | Up to 7.65% | No | Partly exempt | Taxed as income | None |
| Wyoming | None | No | Not taxed | Not taxed | None |
| District of Columbia | Up to 10.75% | No | Partly exempt | Taxed as income | Estate (>$4M) |
Sources: state departments of revenue, Tax Foundation 2026 state tax data, Kiplinger state tax guides. Pension and Social Security treatment often depends on age and income; the state pages carry the thresholds. Data as of September 2026. This is information, not tax advice.
Frequently asked questions
Which states do not tax retirement income at all?
9 states have no income tax, so no retirement income is taxed: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Four more states with an income tax exempt retirement income broadly: Illinois, Mississippi, Pennsylvania (after age 59½) and Iowa (age 55 and over). That makes 13 states where a 401(k) or IRA withdrawal owes no state tax.
Which states tax Social Security benefits in 2026?
8 states tax at least some Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont. Most of them exempt lower and middle incomes through thresholds or credits, so many retirees in those states still owe nothing. The other 42 states and DC do not tax Social Security. Kansas, Missouri and West Virginia all dropped the tax between 2024 and 2026.
Does a state with no income tax always cost a retiree less?
No. A state with no income tax has to fund itself somewhere, usually property and sales tax. Texas has no income tax but a 1.60% effective property tax rate, so a retiree in a $340,000 home pays about $5,440 a year in property tax. A retiree with a modest pension in a state that exempts retirement income and has low property tax, such as Pennsylvania or Illinois outside Cook County, can come out ahead. Run your own numbers in the retirement calculator.
Which states have an estate or inheritance tax?
16 states plus DC tax an estate or an inheritance: Connecticut, Hawaii, Illinois, Kentucky, Maine, Maryland, Massachusetts, Minnesota, Nebraska, New Jersey, New York, Oregon, Pennsylvania, Rhode Island, Vermont, Washington. Maryland has both. Exemptions range from $1 million (Oregon) to the federal level (Connecticut). Inheritance tax is paid by the heir and depends on the relationship; spouses are exempt everywhere, children in most states.
How is pension income treated?
7 states with an income tax exempt pension income fully; most others exempt part of it, often with an age or income test. Military retirement pay is exempt in the large majority of states. Public pensions from the state's own systems are often treated better than private pensions.