Updated October 7, 2026. Quick answer: A state can tax a pension only if you live there or the income comes from a source in that state, because federal law bars a state income tax on retirement income of an individual “who is not a resident or domiciliary of such State”. The table below gives each state’s own treatment of a pension earned elsewhere and links to the state’s page.
Out-of-state pensions, state by state
| State | Out-of-state pension treatment | Rate (2025) |
|---|---|---|
| Florida | No personal income tax | No income tax |
| Texas | Constitution bars income tax | No income tax |
| Tennessee | Hall tax repealed 2021 | No income tax |
| Washington | No income tax | No income tax |
| Pennsylvania | Taxes residents; retirement payments exempt | 3.07% flat (2025) |
| Illinois | Taxes residents; retirement income subtracted | 4.95% flat (2025) |
| California | Nonresident pensions not taxed | 1.00% to 12.30% (2025) |
| New York | Nonresident pensions not taxed | 4% to 10.9% (2025) |
| New Jersey | Nonresident pensions not taxed | 1.4% to 10.75% (2025) |
| Massachusetts | Residents taxed; nonresidents on MA sources | 5.00% flat (2025) |
| Arizona | Residents taxed; $2,500 public pension subtraction | 2.5% flat (2025) |
| North Carolina | Residents taxed; Bailey exclusion for NC and federal retirees | 4.25% flat (2025) |
| Georgia | Residents only; exclusion at 62 and 65 | 5.19% flat (2025) |
| Virginia | Residents only; age deduction | 2% to 5.75% (2025) |
| Ohio | Residents only; retirement credit | 0% to 3.125% (2025) |
| Michigan | Resident only; birth-year deduction | 4.25% flat (2025) |
| Minnesota | Resident only; Social Security subtraction | 5.35% to 9.85% (2025) |
How to read the table
A rate is the figure printed in the state’s own document for the year shown. Where a state’s documents print no rule for a point, the state’s page says so instead of guessing.
Related: retirement taxes and moving states.
Optional adviser-matching service
Plan around your pension and investment income
For U.S. investors with $250,000 or more in investable assets. Want help coordinating investment income with your wider plan? Request adviser introductions through WiserAdvisor.
This is investment-adviser matching, not tax-return preparation.
WiserAdvisor is an independent matching service. Free to request, with no obligation to hire. Request up to three adviser introductions; a match is not guaranteed. Submitting its form allows calls, texts and emails from WiserAdvisor and up to three advisers.
Clear Money Guide may earn a referral payment for a qualifying completed form. Advisers pay for introductions; an introduction is not a Clear Money Guide recommendation.
Compare investment advisersOpens on WiserAdvisor’s site in a new tab.
Sources
- Florida Constitution, Article VII, Section 5 (Florida Senate): https://www.flsenate.gov/Laws/Constitution
- Report Tax Violations: Income Tax as Related to Child Support (Florida Department of Revenue): https://floridarevenue.com/taxes/compliance/Pages/violations.aspx
- Property Tax Cuts as Large as Texas, Fiscal Notes December 2023 (Texas Comptroller of Public Accounts): https://comptroller.texas.gov/economy/fiscal-notes/archive/2023/dec/proptax.php
- H.J.R. 38, 86th Legislature, enrolled text (Texas Legislature): https://capitol.texas.gov/tlodocs/86R/billtext/html/HJ00038F.htm
- Constitutional amendment election details, H.J.R. 38 (Texas Legislative Reference Library): lrl.texas.gov
- Hall Income Tax (Tennessee Department of Revenue): https://www.tn.gov/revenue/taxes/hall-income-tax.html
- Hall Income Tax: Due Date and Tax Rates (Tennessee Department of Revenue): https://www.tn.gov/revenue/taxes/hall-income-tax/due-date-and-tax-rates.html
- Income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax
- Frequently asked questions about income tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/income-tax/frequently-asked-questions-about-income-tax
- Capital gains tax (Washington Department of Revenue): https://dor.wa.gov/taxes-rates/other-taxes/capital-gains-tax
- 2025 Pennsylvania Personal Income Tax Return Instructions Booklet, PA-40 (Pennsylvania Department of Revenue): https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/formsforindividuals/pit/documents/2025/2025_pa-40in.pdf
- 2025 Form IL-1040 Instructions (Illinois Department of Revenue): https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-instr.pdf
- 2025 Schedule NR IL-1040 Instructions (Illinois Department of Revenue): https://tax.illinois.gov/content/dam/soi/en/web/tax/forms/incometax/documents/currentyear/individual/il-1040-schedule-nr-instr.pdf
- 2025 California 540 Forms and Instructions, Personal Income Tax Booklet (Franchise Tax Board): https://www.ftb.ca.gov/forms/2025/2025-540-booklet.pdf
- 2025 California 540NR Forms and Instructions, Nonresident or Part-Year Resident Booklet (Franchise Tax Board): https://www.ftb.ca.gov/forms/2025/2025-540nr-booklet.pdf
- 2025 Instructions for Form IT-201, Full-Year Resident Income Tax Return (NY Department of Taxation and Finance): https://www.tax.ny.gov/pdf/current_forms/it/it201i.pdf
- 2025 Instructions for Form IT-203, Nonresident and Part-Year Resident Income Tax Return (NY Department of Taxation and Finance): https://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf
- 2025 NJ-1040 New Jersey Resident Return instructions (NJ Division of Taxation): https://www.nj.gov/treasury/taxation/pdf/current/1040i.pdf
- 2025 NJ-1040NR Nonresident Return instructions (NJ Division of Taxation): https://www.nj.gov/treasury/taxation/pdf/current/1040nri.pdf
- Massachusetts tax rates page (Department of Revenue): https://www.mass.gov/info-details/massachusetts-tax-rates
- General Laws chapter 62 section 2 (Legislature): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section2
- General Laws chapter 62 section 5A (Legislature): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section5A
- General Laws chapter 62 section 5 (Legislature): https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section5
- 2025 Arizona Form 140 resident booklet (Department of Revenue): https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140Booklet.pdf
- 2025 Arizona Form 140PY part-year booklet (Department of Revenue): https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140PYBooklet.pdf
- 2025 Arizona Form 140NR nonresident booklet (Department of Revenue): https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140NRBooklet.pdf
- Arizona Revised Statutes 43-1091 gross income of a nonresident (Legislature): https://www.azleg.gov/ars/43/01091.htm
- Arizona Revised Statutes 43-1022 subtractions (Legislature): https://www.azleg.gov/ars/43/01022.htm
- 2025 North Carolina Individual Income Tax Instructions, Form D-401 booklet (Department of Revenue): https://www.ncdor.gov/2025-d-401-individual-income-tax-instructions/open
- 2025 IT-511 Individual Income Tax Instruction Booklet (Georgia Department of Revenue): https://dor.georgia.gov/document/document/2025-it-511-individual-income-tax-booklet/download
- Important Tax Updates, 2026 Income Tax Changes (Georgia Department of Revenue): https://dor.georgia.gov/taxes/important-tax-updates
- 2025 Form 760 Resident Individual Income Tax Instructions (Virginia Department of Taxation): https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760-instructions.pdf
- 2025 Form 760PY Part-Year Resident Individual Income Tax Instructions (Virginia Department of Taxation): https://www.tax.virginia.gov/sites/default/files/vatax-pdf/2025-760py-instructions.pdf
- Va. Code 58.1-322 Virginia taxable income of residents (Virginia Law): https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-322/
- Va. Code 58.1-320 Imposition of tax (Virginia Law): https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-320/
- 2025 Ohio IT 1040 / SD 100 Instructions (Ohio Department of Taxation): https://dam.assets.ohio.gov/image/upload/v1767095693/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf
- Ohio Revised Code 5747.02 Levy of tax (Ohio Laws): https://codes.ohio.gov/ohio-revised-code/section-5747.02
- Ohio Revised Code 5747.05 Credits (Ohio Laws): https://codes.ohio.gov/ohio-revised-code/section-5747.05
- 2025 MI-1040 Individual Income Tax Forms and Instructions (Michigan Department of Treasury): https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/MI-1040-Book.pdf
- 2025 Schedule NR, Nonresident and Part-Year Resident Schedule (Michigan Department of Treasury): https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/Schedule-NR.pdf
- 2025 Minnesota Individual Income Tax Forms and Instructions, Form M1 (Minnesota Department of Revenue): https://www.revenue.state.mn.us/sites/default/files/2026-10/m1-inst-25.pdf
- 2025 Schedule M1NR, Nonresidents/Part-Year Residents (Minnesota Department of Revenue): https://www.revenue.state.mn.us/sites/default/files/2026-07/m1nr-25.pdf
- 2025 Schedule M1M, Income Additions and Subtractions (Minnesota Department of Revenue): https://www.revenue.state.mn.us/sites/default/files/2026-07/m1m-25.pdf
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Government Publishing Office, 2023 edition): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.