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How Retirement Income Is Taxed in Every State

February 16, 2025

6 min Read

Written by Heather Taylor

Edited by Chris Cluff

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Every state taxes retirement income a bit differently. More often than not, the way retirement income is taxed can impact a person’s decision on where to spend retirement.

The good news is there is a healthy chunk of states that won’t tax certain types of retirement income, like Social Security or pensions. GOBankingRates referenced TIME Stamped’s breakdown of how every state taxes retirement income and the results reveal a surprising number of tax-friendly states across the United States.

Take a look at how retirement income is taxed across America.

Alabama

Won’t tax Social Security income
Won’t tax pension income
Won’t tax pension, but will tax 401(k)s and IRAs
Doesn’t tax military retirement income

Alaska

No state income tax
No income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Arizona

Won’t tax Social Security income
Won’t tax your estate or inheritance

Arkansas

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

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California

Won’t tax Social Security income
Won’t tax your estate or inheritance

Colorado

Won’t tax your estate or inheritance
Does tax your Social Security income

Connecticut

Doesn’t tax military retirement income

Delaware

Won’t tax Social Security income
Won’t tax your estate or inheritance

Florida

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Georgia

Won’t tax Social Security income
Won’t tax your estate or inheritance

Hawaii

Won’t tax Social Security income
Won’t tax pension income
Will tax 401(k)s and IRAs
Doesn’t tax military retirement income

Idaho

Won’t tax Social Security income
Won’t tax your estate or inheritance

Illinois

Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Doesn’t tax military retirement income

Indiana

Won’t tax Social Security income
Won’t tax your estate or inheritance

Iowa

Won’t tax Social Security income (but used to help determine filing status)
Won’t tax pension income (but used to help determine filing status)
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Kansas

Won’t tax your estate or inheritance
Doesn’t tax military retirement income
Does tax Social Security income

Kentucky

Won’t tax Social Security income
Won’t tax your estate or inheritance

Louisiana

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

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Maine

Won’t tax Social Security income
Doesn’t tax military retirement income

Maryland

Won’t tax Social Security income
Won’t tax your estate or inheritance

Massachusetts

Won’t tax Social Security income
Doesn’t tax military retirement income

Michigan

Doesn’t tax military retirement income
Does tax Social Security income

Minnesota

Doesn’t tax military retirement income
Does tax Social Security income

Mississippi

Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Doesn’t tax military retirement income

Missouri

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Montana

Won’t tax your estate or inheritance
Does tax Social Security income

Nebraska

Won’t tax your estate or inheritance
Does tax Social Security income

Nevada

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

New Hampshire

Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax pension, but will tax 401(k)s and IRAs
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

New Jersey

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

New Mexico

Won’t tax your estate or inheritance
Does tax Social Security income

New York

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

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North Carolina

Won’t tax Social Security income
Won’t tax your estate or inheritance

North Dakota

Won’t tax your estate or inheritance
Doesn’t tax military retirement income
Does tax Social Security income

Ohio

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Oklahoma

Won’t tax Social Security income
Won’t tax your estate or inheritance

Oregon

Won’t tax Social Security income

Pennsylvania

Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Rhode Island

Won’t tax Social Security income
Won’t tax pension income
Doesn’t tax military retirement income

South Carolina

Won’t tax Social Security income
Won’t tax your estate or inheritance

South Dakota

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Tennessee

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Texas

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Utah

Won’t tax your estate or inheritance
Doesn’t tax military retirement income
Does tax Social Security income

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Vermont

Won’t tax Social Security income
Won’t tax pension income
Doesn’t tax military retirement income

Virginia

Won’t tax Social Security income
Won’t tax your estate or inheritance

Washington

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

West Virginia

Won’t tax your estate or inheritance
Doesn’t tax military retirement income
Does tax Social Security income

Wisconsin

Won’t tax Social Security income
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

Wyoming

No state income tax
Won’t tax Social Security income
Won’t tax pension income
Won’t tax Thrift Savings Plan (TSP) income
Won’t tax 401(k) or IRA
Won’t tax your estate or inheritance
Doesn’t tax military retirement income

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Alabama

Alaska

Arizona

Arkansas

California

Colorado

Connecticut

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kansas

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Mississippi

Missouri

Montana

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

South Carolina

South Dakota

Tennessee

Texas

Utah

Vermont

Virginia

Washington

West Virginia

Wisconsin

Wyoming

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