Clear Money Guide
What this guide covers
A quick view of the questions and evidence developed below.
Updated July 28, 2026. Quick answer: Generally yes wherever the state taxes retirement income — but the nuance that catches people is that a state’s retirement-income exclusion may be written around the recipient’s own retirement, and a beneficiary drawing an inherited account may not qualify.
State by state, what each state’s own documents say about taxing an inherited IRA withdrawal: Montana tax on inherited IRA withdrawals, New Mexico tax on inherited IRA withdrawals, North Dakota tax on inherited IRA withdrawals, Oklahoma tax on inherited IRA withdrawals, Oregon tax on inherited IRA withdrawals, Rhode Island tax on inherited IRA withdrawals, South Carolina tax on inherited IRA withdrawals, Utah tax on inherited IRA withdrawals, Vermont tax on inherited IRA withdrawals, Washington tax on inherited IRA withdrawals, West Virginia tax on inherited IRA withdrawals and Wyoming tax on inherited IRA withdrawals.
State by state, what each state’s own documents say about taxing an inherited IRA withdrawal: Alabama tax on inherited IRA withdrawals, Arkansas tax on inherited IRA withdrawals, Connecticut tax on inherited IRA withdrawals, Delaware tax on inherited IRA withdrawals, Hawaii tax on inherited IRA withdrawals, Idaho tax on inherited IRA withdrawals, Indiana tax on inherited IRA withdrawals, Kansas tax on inherited IRA withdrawals, Louisiana tax on inherited IRA withdrawals, Maine tax on inherited IRA withdrawals, Massachusetts tax on inherited IRA withdrawals, Minnesota tax on inherited IRA withdrawals, Mississippi tax on inherited IRA withdrawals and Missouri tax on inherited IRA withdrawals.
State by state, what each state’s own documents say about taxing an inherited IRA withdrawal: Arizona tax on inherited IRA withdrawals, California tax on inherited IRA withdrawals, Colorado tax on inherited IRA withdrawals, Florida tax on inherited IRA withdrawals, Georgia tax on inherited IRA withdrawals, Illinois tax on inherited IRA withdrawals, Iowa tax on inherited IRA withdrawals, Kentucky tax on inherited IRA withdrawals, Maryland tax on inherited IRA withdrawals, Michigan tax on inherited IRA withdrawals, Nebraska tax on inherited IRA withdrawals, New Jersey tax on inherited IRA withdrawals, New York tax on inherited IRA withdrawals, North Carolina tax on inherited IRA withdrawals, Ohio tax on inherited IRA withdrawals, Pennsylvania tax on inherited IRA withdrawals, Tennessee tax on inherited IRA withdrawals, Texas tax on inherited IRA withdrawals, Virginia tax on inherited IRA withdrawals and Wisconsin tax on inherited IRA withdrawals.
State by state, the tax on your own withdrawals: state tax on 401(k) and IRA withdrawals, state by state.
The exclusion may not reach you
Many states exclude some retirement income from tax, often with an age gate. Those exclusions are generally drafted around a taxpayer’s own retirement income — and a 35-year-old emptying a parent’s IRA is not retired, whatever the money’s origin.
This is the same distinction that makes Roth conversions a separate question from ordinary retirement withdrawals: the character of the payment and the status of the recipient are different tests, and state statutes are not consistent about which one they use.
We publish per-state treatment of retirement income with statute cites, but we are deliberately NOT publishing a per-state verdict on inherited-account withdrawals specifically — the statutes largely do not address the beneficiary case directly, and inventing 51 confident answers from silent authority is exactly the failure this site exists to avoid. Use the state data as the starting point and confirm the beneficiary question with a preparer in that state.
Get the inherited-account decision right the first time
Deciding when to take money out of an inherited account is a tax question as much as a rules question, and an adviser can price the withdrawal schedule against the rest of your income before a deadline sets the timing for you.
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The one clean case
The nine states with no income tax do not tax these withdrawals, because there is nothing to apply. Everywhere else, ask specifically whether the exclusion reaches a beneficiary.
Figures verified against the final required minimum distribution regulations (89 FR 58886, July 19, 2024) and New Hampshire RSA chapter 77 on September 30, 2026; the nine-state no-income-tax count (other than New Hampshire), and the state exclusion statements were not re-checked.
Sources
Final regulations on required minimum distributions, published 19 July 2024; SECURE Act (2019) and SECURE 2.0 (2022); IRC §401(a)(9); IRC §2518 (qualified disclaimers); IRC §408(d)(8) (qualified charitable distributions). Cross-checked July 2026 against professional analyses from Kitces, Grant Thornton, Ascensus, Charles Schwab and Kiplinger. Where a deadline or dollar figure is indexed or was not read in primary source for this page, the text says so rather than asserting it.
This states what the cited authority says. It is not tax advice, and inherited account deadlines turn on facts about the decedent and the plan that no page can verify for you.