Updated July 23, 2026. Quick answer: Where you retire changes what you keep. In 2026, 9 states levy no broad individual income tax at all; most states with an income tax now fully exempt Social Security (only a handful still tax any of it, generally above income thresholds); and pension/401(k)/IRA withdrawals range from fully exempt (Illinois, Mississippi, Pennsylvania) to fully taxable with no retiree break. The statute-cited table below covers all 50 states and DC across all three dimensions, including the 2025–2026 changes that stale listicles miss — several states cut rates or expanded exclusions retroactively this year.
Fast routes: Estate tax by state | Provisional income calculator (federal SS tax) | Social Security taxability calculator | Advisor statistics by state
Retirement taxes by state: the 2026 table
Columns: the state’s income-tax structure, how Social Security is treated, and how pensions and 401(k)/IRA withdrawals are treated (with recent changes noted in-line). Federal taxation of Social Security applies everywhere regardless of state — compute yours with the provisional income calculator.
| State | Income tax | Social Security | Pensions & 401(k)/IRA withdrawals | Sources |
|---|---|---|---|---|
| Alabama† | graduated to 5% (3 brackets: 2%/4%/5%) | not taxed (fully exempt by statute) | Defined-benefit pension income fully exempt (public and private, IRC 414(j) plans). 401(k)/IRA and other defined-contribution distributions taxable, except taxpayers 65+ may exempt the first $6,000 of taxable retirement distributions (Lynn Greer Retirement Income Tax Cut Act, Act 2022-294, effective 2023). The widely reported increase to $12,000 for 2026 did not happen: HB388 (2025) passed the House 103–0 but died in the Senate when the Legislature adjourned May 14, 2025, and the 2026 session enacted no replacement, so the exemption stays $6,000 per taxpayer. Military: Military retirement pay fully exempt. Recent: $6,000 65+ distribution exemption effective TY2023; the reported TY2026 increase to $12,000 was never enacted. | Ala. Code § 40-18-19; Act 2022-294 (Lynn Greer Retirement Income Tax Cut Act of 2022); ADOR: Income Exempt from Alabama Income Taxation |
| Alaska | none | not taxed (no state income tax) | Not taxed (no state income tax). | No individual income tax statute exists |
| Arizona | flat 2.5% | not taxed (subtracted from Arizona gross income) | Private pensions, 401(k), and IRA distributions fully taxable at 2.5%. Subtraction up to $2,500 for U.S. government civil service and Arizona state/local government pensions (A.R.S. § 43-1022). Military: Military retirement pay 100% exempt (since TY2021). SB1749 (effective 2026) expands exclusion to payments from all veterans’ pensions, not just disability pensions. Recent: SB1749 veterans’ pension exclusion expansion effective 1/1/2026. | A.R.S. § 43-1022; AZDOR: Identifying Other Taxable Income / Military Tax Filing |
| Arkansas | graduated to 3.9% (2 brackets: 2%/3.9%) | not taxed (fully exempt) | Up to $6,000 per person exemption for employer-sponsored pension/qualified plan distributions; same $6,000 covers traditional IRA distributions taken at 59½ or later (earlier only on death/disability). Amounts above $6,000 taxable. Military: Military retirement pay fully exempt (separate from and stackable with the $6,000 exemption for other retirement income). | Ark. Code § 26-51-307; DFA Subject 206: Pensions and Annuities |
| California | graduated to 13.3% (plus existing 1% mental health surtax included in that top rate; wages also face uncapped SDI, not relevant to retirement income) | not taxed (excluded from CA AGI) | Pensions, 401(k), and IRA distributions fully taxable as ordinary income — no age-based exclusion or retirement deduction. Military: NEW: for TY2025-2029, up to $20,000 of military retirement pay / Survivor Benefit Plan income excludable if AGI under $125,000 (single) / $250,000 (joint) — enacted in the 2025-26 budget signed June 27, 2025. Previously CA was the only state fully taxing military retirement. Recent: Partial military retirement exclusion effective TY2025 (sunsets after 2029). | FTB 2025 Schedule CA (540) instructions; Cal. Rev. & Tax. Code (2025-26 budget trailer legislation) |
| Colorado | flat 4.4% | Taxed only above deductions: age 65+ may subtract 100% of federally taxed Social Security; age 55-64 may subtract 100% if AGI ≤ $75,000 (single) / $95,000 (joint) (TY2025+), otherwise SS counts within the $20,000 pension/annuity subtraction cap. | Pension/annuity subtraction (includes pensions, 401(k), IRA distributions, and taxable SS within cap): up to $20,000 (age 55-64) or $24,000 (65+) per taxpayer. Amounts above caps taxed at 4.4%. SB25-136 (removing caps) was postponed, not enacted. Military: Under age 55: military retirement subtraction up to $15,000 (TY2022-2028), C.R.S. § 39-22-104(4)(y). At 55+ the regular pension subtraction applies. Recent: 55-64 full SS subtraction with AGI limits effective TY2025. | C.R.S. § 39-22-104(4)(f), (g), (y); CDOR Income Tax Topics: Social Security, Pensions, and Annuities |
| Connecticut | graduated to 6.99% (6 brackets, 2%-6.99%) | Fully exempt if federal AGI < $75,000 (single/MFS/HOH) / $100,000 (MFJ). Above thresholds, at most 25% of benefits taxable (75% still exempt), limited to the federally taxable amount. | Pension/annuity income: 100% deduction below the same $75,000/$100,000 AGI thresholds; deduction phases out above them, reaching zero at $100,000 (single) / $150,000 (joint) (phase-out replaced the cliff beginning TY2024). IRA distributions (non-Roth): deduction phased in — 75% for TY2025, 100% beginning TY2026, same thresholds and phase-out. Military: Military retirement pay 100% exempt regardless of income. Recent: IRA deduction phase-in completes at 100% for TY2026. | CGS § 12-701(a)(20); CT DRS 2024 CT-1040 instructions; CGA OLR Report 2024-R-0130 |
| Delaware | graduated to 6.6% (6 brackets, 2.2%-6.6%) | not taxed (excluded) | Age 60+: exclude up to $12,500 per person of pension plus eligible retirement income (includes 401(k), IRA, Keogh, 457, plus dividends/interest/capital gains/rental income used for retirement). Under 60: $2,000 pension exclusion. HB 108 (raising exclusion to $25,000) was still in committee, NOT enacted — current amount remains $12,500. Military: Military pension: up to $12,500 exclusion regardless of age (under-60 amount raised to $12,500 in 2022). | 30 Del. C. § 1106(b); Delaware Division of Revenue Personal Income Tax FAQs |
| District of Columbia | graduated to 10.75% (6 brackets, 4%-10.75%) | not taxed (excluded) | Pensions, 401(k), and IRA distributions fully taxable — no retirement income exclusion. The former $3,000 exclusion for DC/federal government pensions (62+) was repealed for tax years beginning on/after 1/1/2015 (D.C. Law 20-155); a restoration bill (B24-0071) was not enacted. Military: Military retirement fully taxable (no exclusion). | D.C. Code § 47-1803.02(a)(2); D.C. Law 20-155 (FY2015 Budget Support Act) |
| Florida | none | not taxed (no state income tax) | Not taxed (no state income tax). | Fla. Const. art. VII (no personal income tax) |
| Georgia | Flat 4.99% (HB 463, signed May 11, 2026, cut the rate retroactively to January 1, 2026; further trigger cuts of 0.125%/yr are scheduled toward 3.99%) | not taxed (fully excluded) | Retirement income exclusion (pensions, 401(k), IRA, interest, dividends, capital gains, rental, plus max $5,000 earned income): up to $35,000 per person ages 62-64; up to $65,000 per person 65+. Under 62 (non-military): no exclusion. Military: Military retirement: under 62, up to $17,500 plus an additional $17,500 with at least $17,500 of earned income. Beginning TY2026 (HB 266, signed 5/13/2025): up to $65,000 of military retirement excludable regardless of age. Recent: HB 266 military exclusion expansion effective TY2026; no rate cut triggered for 2026. HB 463 also raises Georgia’s retirement-income exclusion to $70,000 starting tax year 2027. | O.C.G.A. § 48-7-27(a)(5), (a)(5.1); Georgia DOR: Retirement Income Exclusion |
| Hawaii | graduated to 11% (12 brackets, 1.4%-11%) | not taxed (fully exempt) | Employer-funded (non-contributory) pension income fully exempt regardless of amount. Employee-funded portions taxable: 401(k) elective-deferral distributions and IRA withdrawals are taxable; contributory pensions split (employer-funded portion exempt, employee portion taxable). Per HRS § 235-7(a) and TIR 96-5. Military: Military retirement exempt (treated as employer-funded government pension). Recent: Act 46 (2024) is phasing in large standard deduction increases through 2031, lowering effective burdens. | HRS § 235-7(a); Hawaii DOTAX TIR 96-5 |
| Idaho† | flat 5.3% (cut from 5.695% by HB 40, 2025) | not taxed (subtracted in full) | Pensions, 401(k), and IRA distributions generally fully taxable. Narrow Retirement Benefits Deduction (Idaho Code § 63-3022A) only for: CSRS (not FERS), FSRDS, military retirement, Idaho Firefighters Retirement Fund, and certain Idaho police pensions — requires age 65+ (or 62+ disabled); MFJ must file jointly. 2025 maximums approximately $48,216 single / $72,324 joint, reduced dollar-for-dollar by Social Security/railroad benefits received. Military: Military retirement qualifies for the § 63-3022A deduction; 2025 change lets retired servicemembers under 62 qualify if disabled or employed with income requiring a federal filing. Recent: Rate cut to 5.3% (2025); military eligibility expansion for 2025. | Idaho Code § 63-3022A; Idaho State Tax Commission: Idaho Retirement Benefits Deduction; Form 39R Part B |
| Illinois | flat 4.95% | not taxed (federally taxed portion fully subtracted) | Fully exempt: all federally taxed retirement income is subtracted — qualified employer plans (401(k), 403(b), 457), traditional IRA distributions (including Roth conversions), private and government pensions, railroad retirement. IL-1040 Line 5; IDOR Publication 120. Military: Military retirement exempt (included in the general subtraction). | 35 ILCS 5/203(a)(2)(F); IDOR Publication 120 (Retirement Income) |
| Indiana | flat 2.95% for 2026 (down from 3% in 2025; 2.9% scheduled 2027; possible trigger cuts to 2.55% by 2030) plus county income taxes | not taxed (fully deducted) | Pensions, 401(k), and IRA distributions fully taxable at the state and county level — no general retirement exclusion. Limited deductions exist for civil service annuities (up to $16,000, 62+, offset by SS) and railroad retirement. Military: Military retirement and survivor benefits 100% deductible (IC 6-3-2-4, fully phased in since TY2022). Recent: Rate cut to 2.95% effective 1/1/2026 (HB1001). | IC 6-3-2-4; Indiana DOR Information Bulletins IB26/IB27 |
| Iowa | flat 3.8% (SF 2442, effective TY2025; unchanged 2026) | not taxed (fully exempt) | Fully exempt for taxpayers 55+ (also disabled taxpayers and eligible survivors): pensions (public and private, incl. IPERS), 401(k)/403(b)/457, traditional IRA distributions, annuities — no dollar cap (HF 2317, effective TY2023; Iowa Code § 422.7). Under 55 (non-disabled): taxable at 3.8%. Military: Military retirement exempt regardless of age. | Iowa Code § 422.7; Iowa DOR: Retirement Income Tax Guidance; HF 2317 (2022); SF 2442 (2024) |
| Kansas | graduated, 2 brackets: 5.2% / 5.58% (top bracket starts at $23,000 single / $46,000 joint) | not taxed — fully exempt for all incomes beginning TY2024 (SB 1, 2024 special session, eliminated the old $75,000 AGI cliff) | Public pensions exempt: KPERS, federal civil service, military, railroad retirement. Private-sector pensions, 401(k), and IRA distributions fully taxable with no exclusion. Military: Military retirement fully exempt (as federal government pension). Recent: SB 1 (June 2024): full SS exemption and 2-bracket structure. | K.S.A. 79-32,117(c); 2024 Special Session SB 1 (KLRD summary); KDOR Individual Income FAQs |
| Kentucky | flat 3.5% for 2026 (cut from 4% by HB 1, signed Feb 2025, via 2022 trigger mechanism) | not taxed (fully excluded) | Retirement income exclusion up to $31,110 per person covering pensions, annuities, 401(k), and IRA distributions (Schedule P / KRS 141.019). Government pension income attributable to service before 1/1/1998 is fully exempt beyond the cap (Schedule P exempt-percentage calculation). Military: Military retirement attributable to pre-1998 service fully exempt; post-1997 service portion falls within the $31,110 exclusion. Recent: Rate 4% (2025) → 3.5% (2026). | KRS 141.019; KY DOR Schedule P (Pension Income Exclusion) |
| Louisiana | flat 3% (Act 11, 2024 Third Extraordinary Session, effective TY2025) | not taxed (fully exempt) | Federal, Louisiana state/local government, and Louisiana public retirement system pensions fully exempt. Other retirement income (private pensions, 401(k), IRA): persons 65+ may exclude up to $12,000 per person per year (raised from $6,000 effective TY2025, CPI-indexed going forward); remainder taxed at 3%. Military: Military retirement and military survivor benefit plan income fully exempt (federal retirement benefits). Recent: Flat 3% and $12,000 (from $6,000) age-65 exemption effective TY2025. | La. R.S. 47:44.1 (annual retirement income exemption); La. R.S. 47:44.2; LAC 61:I.1311; LDR FAQ: excludable retirement system benefits |
| Maine | graduated to 7.15% (3 brackets, 5.8%-7.15%) | not taxed (fully subtracted) | Pension income deduction up to $48,216 per taxpayer for TY2025 (indexed annually; pegged to max SS benefit), covering pensions, 401(k), and IRA distributions — reduced by Social Security/railroad benefits received. NEW for TY2025+: deduction phases out for federal AGI above $125,000 single/MFS, $187,500 HOH, $250,000 MFJ (indexed after 2025); pre-age-55 non-periodic distributions no longer qualify. Military: Military retirement pay fully exempt with no cap and no SS offset. Recent: AGI-based phase-out of the pension deduction effective TY2025. | 36 M.R.S. § 5122(2)(M-2); Maine Revenue Services 2025 Form 1040ME general instructions and legislative changes bulletin |
| Maryland† | graduated to 6.5% (10 brackets; new 6.25%/6.5% high-income brackets added for TY2025+), plus county income taxes (local cap raised to 3.3%) | not taxed (fully subtracted) | Pension exclusion for age 65+ or totally disabled: up to $41,200 for TY2025 (indexed to max SS benefit; Comptroller publishes annual amount), reduced by Social Security/railroad benefits received. Applies only to employer-sponsored plans (pensions, 401(k), 403(b)) — traditional IRA distributions do NOT qualify and are fully taxable. Separate $15,000 subtraction for retired public safety employees 55+. Military: Military retirement subtraction: $12,500 under age 55; $20,000 at 55+. Recent: TY2025 budget added top brackets (6.25%/6.5%) and raised local rate cap. | Md. Tax-Gen. § 10-209 (pension exclusion); Md. Tax-Gen. § 10-207 (military); Comptroller Technical Bulletin No. 51 |
| Massachusetts | flat 5% plus 4% surtax on taxable income over ~$1,107,750 (2026, indexed) — effectively 2 brackets (5%/9%) | not taxed (exempt) | Massachusetts state/local and U.S. government contributory pensions exempt (as are pensions from states with reciprocal treatment). Private pensions, 401(k), and traditional IRA distributions taxable at 5% (IRA/annuity basis from previously MA-taxed contributions recovered tax-free). Large lump sums can trigger the 9% surtax band. Military: Military retirement (noncontributory U.S. pension) exempt. | M.G.L. c. 62 § 2(a)(2)(E); Mass.gov: Tax Treatment of Government Pensions in Massachusetts |
| Michigan† | flat 4.25% | not taxed (fully deducted) | TY2026 completes the 4-year phase-in under PA 4 of 2023 (HB 4001): ALL taxpayers regardless of birth year may deduct retirement and pension income (pensions, 401(k), IRA) up to the Tier-1 cap — approximately $67,610 single / $135,220 joint for 2026 (indexed annually; 2025 was 75% limitation = $49,422/$98,845). Treasury publishes final 2026 amounts; PA 24 of 2025 also lets those born after 1952, age 67+, claim both the standard retirement deduction and the SS deduction for TY2026-2028. Military: Military and railroad pensions and public safety (police/fire) retirement fully exempt without cap. Recent: Full pension-deduction restoration effective TY2026 (100% year of phase-in). | MCL 206.30; PA 4 of 2023 (HB 4001); Michigan Treasury: Retirement and Pension Benefits guidance; RAB 2026-1 |
| Minnesota | graduated to 9.85% (4 brackets, 5.35%-9.85%) | Partially taxed: full subtraction of federally taxable SS if AGI ≤ ~$84,490 single / ~$108,320 MFJ (TY2025, indexed); subtraction phases out 10% per $4,000 of AGI above threshold (per $2,000 MFS), fully phased out above ~$120,490 / ~$144,320. Above that, taxed like federal. | Pensions, 401(k), and IRA distributions generally fully taxable. Qualified public pension subtraction (TY2023+): up to $12,500 single / $25,000 MFJ (indexed) for public pension income from non-Social-Security-covered government employment (subject to income phase-outs). Military: Military retirement pay: full subtraction (M.S. 290.0132), or taxpayers may elect a tax credit instead. | Minn. Stat. § 290.0132 (SS, military, public pension subtractions); MN DOR: Social Security Benefit Subtraction; Qualified Public Pension Subtraction |
| Mississippi | flat 4% for 2026 (final cut under prior schedule; HB 1 of 2025 continues: 3.75% in 2027, then -0.25%/yr to 3% by 2030, with growth triggers toward elimination). First $10,000 of taxable income exempt. | not taxed (fully exempt) | Fully exempt: all qualified retirement income — pensions (public/private), 401(k)/403(b), IRA distributions taken per plan terms (normal retirement), annuities. Early/non-qualified distributions are taxable. Military: Military retirement fully exempt (included in retirement income exemption). Recent: Rate 4.4% (2025) → 4% (2026); HB 1 (2025) sets phase-down toward elimination. | Miss. Code § 27-7-15(4)(k) (retirement income exclusion); HB 1 (2025), ‘Build Up Mississippi Act’ |
| Missouri | graduated to 4.7% (top rate, after trigger reductions; 7 brackets from 2%) | not taxed — 100% deduction for SS retirement benefits (62+) and SS disability regardless of income, effective TY2024 (SB 190 of 2023 removed income limits) | Public pension exemption: up to the maximum annual Social Security benefit per taxpayer (about $46,381 for TY2024, indexed — DOR table shows $48,967 for 2026), no income limits since TY2024; reduced by SS deductions claimed. Private pensions/401(k)/IRA: only up to $6,000 exemption, and only if MO AGI ≤ $25,000 single / $32,000 MFJ. Widely reported change that did not happen: HB 426 (2025) would have made private retirement income 100% exempt beginning in 2026, but it died without passage, so the $6,000 limit above is still the law for 2026. The separate Missouri capital gains deduction (HB 594, 2025) is unaffected. Military: Military retirement pay 100% deductible (fully exempt). Recent: SS fully exempt and public pension income limits removed since TY2024; no 2026 private-pension change enacted. | RSMo § 143.125 (SS deduction); RSMo § 143.124 (pension exemptions); RSMo § 143.174 (military); MO DOR Pension FAQs |
| Montana | graduated, 2 brackets: 4.7% / 5.65% for 2026 (top rate cut from 5.9% by HB 337; falls to 5.4% in 2027; top bracket starts ~$47,500 single / ~$95,000 joint) | Taxed to the extent federally taxable: since TY2024 Montana starts from federal taxable income (SB 399 of 2021), so the federally taxed portion of SS flows into Montana taxable income with no additional state-specific SS exemption (federal thresholds $25k/$32k determine inclusion). | Pensions, 401(k), and IRA distributions fully taxable — the old partial pension/annuity exemption was repealed with the TY2024 restructure. Taxpayers 65+ receive a $5,500 subtraction (any income type) plus the state follows the larger federal standard deduction. Military: Partial exemption (TY2024-2033): qualifying retirees — those who became MT residents after 6/30/2023, or residents who began receiving military retirement/SBP while resident — may exempt the lesser of 50% of military retirement income or their MT-source earned income, for 5 consecutive years. Recent: Top rate 5.9% → 5.65% effective 1/1/2026 (HB 337). | Mont. Code Ann. § 15-30-2120 (subtractions incl. 65+ and military); SB 399 (2021); HB 337 (2025); MT DOR: Working Military Retirement Exemption |
| Nebraska | graduated, 2.46% to 4.55% top rate for TY2026 (LB 754 of 2023 schedule; falls to 3.99% in 2027) | Not taxed. 100% exemption effective TY2024 (LB 873 of 2022 phase-out accelerated by LB 754 of 2023), regardless of income. | Pensions, 401(k) and IRA withdrawals fully taxable as ordinary income; Nebraska has no general retirement income exclusion. Military: Military retirement benefits 100% excluded from Nebraska taxable income since TY2022 (LB 387 of 2021); no election needed. Recent: SS exemption completed TY2024; top rate stepping down annually (5.84% 2024, 5.20% 2025, 4.55% 2026, 3.99% 2027). | Neb. Rev. Stat. § 77-2716 (Social Security and military exclusions); Neb. Laws LB 754 (2023) rate schedule; NE DOR FAQ: Military Retirement Benefits Exclusion |
| Nevada | none | Not taxed (no state income tax). | Not taxed (no state income tax). Recent: None. | Nevada has no personal income tax (Nev. Const. art. 10, § 1(9) prohibits tax on personal income) |
| New Hampshire | none (Interest & Dividends Tax repealed for taxable periods beginning after 12/31/2024) | Not taxed. | Not taxed. NH never taxed wages or retirement distributions; with the I&D tax repeal effective 1/1/2025 (HB 2, 2023 session), NH imposes no individual income tax at all. Recent: I&D tax (3% on interest/dividends over $2,400/$4,800) repealed effective TY2025. | NH DRA Technical Information Release 2025-001 (I&D repeal); former RSA 77 (repealed) |
| New Jersey | graduated, 1.4% to 10.75% top rate | Not taxed (fully excluded from NJ gross income; also excluded when testing the pension-exclusion income limit). | Taxable, but age 62+ (or disabled) pension/retirement income exclusion: full exclusion up to $100,000 MFJ / $75,000 single / $50,000 MFS when total NJ income is $100,000 or less; for income $100,001-$125,000, 50%/37.5%/25% of pension income excludable (MFJ/single/MFS); $125,001-$150,000, 25%/18.75%/12.5%; NO exclusion once income exceeds $150,000 (hard cliff at $150,001). Military: Military pensions and survivor benefit payments fully exempt regardless of age or income. Recent: Partial (percentage-based) exclusion for $100k-$150k incomes added TY2021; structure unchanged through 2026. | N.J.S.A. 54A:6-2 (Social Security); N.J.S.A. 54A:6-10 and 54A:6-15 (pension/other retirement income exclusions); N.J.S.A. 54A:6-26 (military pensions); NJ Division of Taxation GIT-1&2 / njit7 |
| New Mexico | graduated, 1.5% to 5.9% top rate (bracket structure restructured effective TY2025 by HB 252 of 2024) | Not taxed for most retirees: full exemption (TY2022+) if AGI does not exceed $100,000 single / $150,000 MFJ, HoH, surviving spouse / $75,000 MFS. Above the caps, SS is fully taxable (no phase-out). A 2025 bill (HB 293) to remove the caps was NOT enacted – the NM Tax & Revenue page still shows the caps. | Pensions, 401(k) and IRA withdrawals taxable. Age 65+ may claim up to an $8,000 exemption against all income, phased out at moderate incomes (NMSA § 7-2-5.2); persons age 100+ with no dependents are fully exempt (NMSA § 7-2-5.7). Military: Military retirement pay exemption of $30,000 (TY2024+); HB 252 (signed March 6, 2024) made it permanent and extended it to surviving spouses (NMSA § 7-2-5.13). Recent: New lower-rate bracket structure effective TY2025; military exemption made permanent 2024. | NMSA 1978 § 7-2-5.14 (Social Security exemption); NMSA 1978 § 7-2-5.13 (armed forces retirement pay); NMSA 1978 § 7-2-5.2 (age 65+ exemption); NM Taxation & Revenue: Social Security Income Tax Exemption page |
| New York | graduated, ~4% to 10.9% top rate (top 10.9% bracket in effect through 2027; FY2026 budget cut middle-class bracket rates slightly starting 2026) | Not taxed (full subtraction from NY AGI). | Private pensions, annuities, IRA and 401(k) distributions taxable, but taxpayers age 59 1/2+ may exclude up to $20,000/person per year (Tax Law § 612(c)(3-a)); unchanged for 2026. NYS/local government, federal civil service pensions fully exempt (§ 612(c)(3)). Military: Military pensions fully exempt as government pensions. Recent: No change to the $20,000 exclusion; bills to raise it (e.g., S2571/A259) not enacted as of mid-2026. | N.Y. Tax Law § 612(c)(3) and (3-a); NY Dept. of Taxation & Finance pension exclusion guidance (Pub 36 / IT-201 line 29) |
| North Carolina | flat 3.99% for TY2026 (down from 4.25% in 2025 per S.L. 2023-134 schedule; revenue-trigger reductions possible for 2027+) | Not taxed (deducted from AGI). | Pensions, 401(k) and IRA withdrawals fully taxable at the flat rate; no general retirement exclusion. Exception: Bailey settlement – federal/state/local government retirement benefits are exempt if the retiree had 5+ years of creditable service as of August 12, 1989. Military: Military retirement pay and SBP payments deductible for retirees with 20+ years of service or medically retired (S.L. 2021-180, TY2021+). Recent: Rate stepping down annually; 3.99% reached in 2026. | N.C.G.S. § 105-153.5(b) (deductions incl. SS, Bailey, military); N.C.G.S. § 105-153.7 (rate); NCDOR Bailey settlement guidance |
| North Dakota | graduated, three brackets: 0%, 1.95%, 2.5% top rate (HB 1158, 2023) | Not taxed (full subtraction, all incomes, since TY2021; N.D.C.C. § 57-38-30.3). | Pensions, 401(k) and IRA withdrawals taxable (many retirees fall in the 0% bracket); no general retirement exclusion. Military: Military retirement pay fully deductible (TY2019+). Recent: None for 2026; flat-tax proposals in 2025 session did not change current rates. | N.D.C.C. § 57-38-30.3 (rates, SS and military subtractions); ND Office of State Tax Commissioner individual income tax pages |
| Ohio | flat 2.75% for TY2026 on income over $26,050 (0% below); HB 96 budget signed June 30, 2025 completed the move to a flat rate | Not taxed (deducted in computing Ohio adjusted gross income). | Pensions, 401(k) and IRA withdrawals taxable; modest nonrefundable credits: retirement income credit up to $200 (R.C. 5747.055), senior citizen credit $50 per return age 65+, both only if Ohio MAGI less exemptions is under $100,000; separate lump-sum credits. Military: Military retirement pay (uniformed services) fully deductible. Recent: 2026 is the first flat-rate year (2025 had 2.75% and 3.125% brackets). | Ohio Rev. Code § 5747.02 (rates, as amended by Am. Sub. H.B. 96, 2025); R.C. 5747.055 (retirement income credit); Ohio Dept. of Taxation Retirement Income FAQ |
| Oklahoma | graduated, top rate 4.5% for TY2026 (HB 2764, 2025: cut from 4.75% and consolidated brackets; automatic 0.25-point trigger cuts toward eventual phase-out) | Not taxed (fully exempt to the extent federally taxable). | Exclusion of up to $10,000 per person for qualifying retirement income (government pensions and private qualified plans incl. 401(k)/IRA distributions); amounts above that taxable. Military: Military retirement pay 100% exempt (TY2022+; previously greater of 75% or $10,000). Recent: HB 2764 (signed May 28, 2025): top rate 4.5% starting TY2026 with revenue triggers toward zero. | 68 O.S. § 2358 (SS, pension and military exclusions); 68 O.S. § 2355 as amended by HB 2764 (2025) (rates); OTC Form 511 instructions |
| Oregon† | graduated, 4.75% to 9.9% top rate | Not taxed (ORS 316.054 subtraction). | Pensions, 401(k) and IRA withdrawals generally fully taxable. Federal pension income attributable to service before October 1, 1991 is fully subtractable (prorated for mixed service). The low-income retirement income credit (ORS 316.157: age 62+, ~9% credit, household income under $22,500/$45,000) sunset – it may not be claimed for tax years beginning on or after January 1, 2026. Military: No blanket exemption; military retirement gets the same pre-October 1991 federal-service subtraction only. Recent: Retirement income credit expired after TY2025 (2025-session extension bill SB 112 status: no enacted extension found). | ORS 316.054 (Social Security); ORS 316.157 (retirement income credit sunset); ORS 316.680 federal pension subtraction; OAR 150-316-0225; Publication OR-PIT-VET |
| Pennsylvania | flat 3.07% | Not taxed. | Not taxed in retirement: distributions from eligible employer-sponsored plans (pensions, 401(k), 403(b)) are exempt when made after retirement upon meeting the plan’s age or years-of-service conditions; IRA distributions exempt when made on or after age 59 1/2 (or death/disability). Early distributions can be taxable to the extent they exceed previously-taxed contributions. Military: Military retirement pay not taxed. Recent: None. | 72 P.S. § 7301(d) (compensation definition excluding retirement payments); 61 Pa. Code § 101.6; PA DOR guidance: Gross Compensation / retirement income |
| Rhode Island | graduated, 3.75% / 4.75% / 5.99%; TY2026 brackets: 3.75% to $82,050, 4.75% to $186,450, 5.99% above (ADV 2025-22) | Taxed only above income limits: SS modification fully exempts federally-taxable SS for taxpayers at SSA full retirement age with federal AGI below $107,000 (single/HoH/MFS) or $133,500-$133,750 (RI DOR publications conflict on the exact MFJ figure; confirm on the RI-1040 instructions) (MFJ) for TY2025 (inflation-adjusted annually; TY2026 amounts set in a later advisory). Hard cliff – no partial exemption above the limits. | Pension/annuity/401(k)/403(b)/TSP income: modification of up to $50,000 per person (TY2025+, raised from $20,000) for taxpayers at full retirement age with AGI below the same limits; joint filers can reach $100,000 combined. IRA distributions do NOT qualify for this modification. Military: Military service pensions fully exempt (TY2023+), no age or income limits; surviving spouses eligible (R.I. Gen. Laws § 44-30-12(c)(11)). Recent: Pension/annuity modification increased $20,000 to $50,000 effective TY2025. A bill for unlimited pension deduction from 2026 (H5761) was not enacted. | R.I. Gen. Laws § 44-30-12; RI Division of Taxation ADV 2025-22 (Nov 3, 2025); RI Division of Taxation Publication 2026-01 (Retirement Income Guide, TY2025) |
| South Carolina† | restructured for TY2026 by H.4216 (signed March 30, 2026): 1.99% on income under $30,000; 5.21% marginal rate above (tax = 5.21% of income minus $966); new SCIAD standard deduction ($15,000 single / $30,000 MFJ, income-limited); revenue triggers to cut the top rate further | Not taxed (exemption preserved under H.4216). | Retirement income deduction (S.C. Code § 12-6-1170): up to $3,000/year under age 65, up to $10,000/year at 65+; plus, from the year a resident turns 65, a $15,000 deduction against any income (reduced by the retirement deduction claimed). Verify these deduction amounts on 2026 forms – H.4216 rewrote the deduction architecture (SCIAD) and SCDOR’s H.4216 notice does not address retirement deductions. (A $22,500 head-of-household tier also applies under the new SCIAD architecture.) Military: Military retirement income fully deductible regardless of age (S.C. Code § 12-6-1171, 2022), incl. surviving spouses. Recent: H.4216 / Act of March 30, 2026: biggest SC income tax overhaul in decades, effective TY2026; switches base to federal AGI with SC-specific deductions. | SCDOR: Information about H. 4216; S.C. Code § 12-6-1170 (retirement deduction); S.C. Code § 12-6-1171 (military retirement) |
| South Dakota | none | Not taxed (no state income tax). | Not taxed (no state income tax). Recent: None. | South Dakota imposes no personal income tax |
| Tennessee | none (Hall tax on interest/dividends fully repealed as of TY2021) | Not taxed (no state income tax). | Not taxed (no state income tax). Recent: None since Hall tax repeal (2021). | former Tenn. Code Ann. § 67-2-102 (Hall tax, repealed) |
| Texas | none (constitutionally prohibited since 2019 amendment) | Not taxed (no state income tax). | Not taxed (no state income tax). Recent: None. | Tex. Const. art. VIII, § 24-a |
| Utah | flat 4.45% for TY2026 (SB 60, 2026 session; was 4.50% TY2025, 4.55% TY2024) | Taxed, but a nonrefundable Social Security benefits credit fully offsets the tax for MAGI up to $54,000 single / $90,000 MFJ and HoH / $45,000 MFS (thresholds raised by SB 71, 2025); credit phases out at 2.5 cents per dollar of income above the threshold. Full repeal proposed (Gov. Cox) but not enacted as of the 2026 session. | Pensions, 401(k) and IRA withdrawals fully taxable at the flat rate; a retirement credit up to $450 exists only for those born before Jan 1, 1953 (income-limited, cannot combine with the SS credit). Military: Nonrefundable credit equal to the flat-tax on military retirement pay (effectively exempt; Utah Code § 59-10-1042? – enacted SB 11, 2021; cannot be combined with the SS or retirement credit). Recent: SB 71 (2025): SS credit thresholds raised from $45k/$75k to $54k/$90k; SB 60 (2026): rate cut to 4.45%. | Utah Code § 59-10-104 (rate); Utah Code § 59-10-1042 (Social Security benefits credit); Utah State Tax Commission incometax.utah.gov |
| Vermont | graduated, 3.35% to 8.75% top rate | Partially taxed: full exemption if AGI is at or below $55,000 (single/HoH) or $70,000 (MFJ) – thresholds raised $5,000 by Act 71 of 2025, effective TY2025; partial exemption phases out over the next $10,000 of AGI ($55k-$65k / $70k-$80k); fully taxable above that. | Pensions, 401(k) and IRA withdrawals generally fully taxable; a $10,000 exclusion exists for CSRS (federal civil service) and certain other retirement income for taxpayers within the SS-exemption income thresholds (one exclusion per taxpayer; verify current scope with VT DOT). Military: Act 71 (signed June 25, 2025, effective TY2025): military retirement and survivor benefit income fully exempt when AGI is $125,000 or less; exemption phases out for AGI $125,000-$175,000; none above $175,000. Recent: Act 71 (2025): SS thresholds +$5,000; near-full military pension exemption replaced the old $10,000 cap. | 32 V.S.A. § 5830e (retirement income exemptions); Vermont Act 71 (2025, S.51); VT Dept. of Taxes: Social Security Exemption page |
| Virginia | graduated, 2% to 5.75% top rate (top bracket starts at $17,000) | Not taxed (subtracted from federal AGI). | Pensions, 401(k) and IRA withdrawals taxable; Age Deduction: born on or before Jan 1, 1939 – full $12,000; age 65+ born after Jan 1, 1939 – $12,000 reduced $1-for-$1 by adjusted FAGI (excl. taxable SS) over $50,000 single / $75,000 married combined (single deduction gone at $62,000). Military: Military Benefits Subtraction up to $40,000 per veteran for TY2025 and after (phased in $10k/2022, $20k/2023, $30k/2024, $40k/2025; age-55 requirement removed from TY2024). Cannot claim both this subtraction and the age deduction on the same income. Recent: Military subtraction reached its full $40,000 in 2025 and applies in 2026. | Va. Code § 58.1-322.03 (age deduction and SS subtraction); Va. Code § 58.1-322.02(24) (military benefits subtraction); Virginia Tax: Subtractions page and Military Benefits FAQ |
| Washington | none on wages or retirement income (state levies a 7% excise on long-term capital gains above an inflation-adjusted deduction (~$270k+), plus a 2.9% surtax on gains over $1M enacted 2025 – retirement-account gains and distributions are exempt from it) | Not taxed (no personal income tax). | Not taxed (no personal income tax; capital gains excise explicitly exempts assets held in retirement accounts). Recent: 2.9% capital-gains surtax on gains over $1M (SB 5813, 2025) – irrelevant to most retirement income. | RCW 82.87 (capital gains excise; retirement account exemption at RCW 82.87.050) |
| West Virginia | graduated; TY2026 rates cut ~5% across the board retroactive to Jan 1, 2026 – top rate 4.58% (was 4.82% in 2025, 5.12% in 2023, 6.5% pre-2023); further trigger-based cuts possible | Not taxed beginning TY2026: HB 4880 (2024) phase-out complete – 35% exempt 2024, 65% 2025, 100% 2026, for all income levels (pre-2024 exemption applied only under $50k/$100k AGI). | Pensions, 401(k) and IRA withdrawals generally taxable; age 65+ may exclude up to $8,000 of any income ($16,000 MFJ both 65+) via the senior citizen modification; first $2,000 of WV state/federal civil service pensions exempt; WV police/firefighter/deputy sheriff pensions fully exempt. Military: Military retirement income fully exempt (W. Va. Code § 11-21-12). Recent: SS 100% exempt starting TY2026; 2026 rate-cut law signed spring 2026 (top 4.58%). | W. Va. Code § 11-21-12(c) (modifications incl. SS phase-out, $8,000 senior modification, military exemption); WV Tax Division: Senior Citizen Social Security Modification page; WV Tax Division: 2026 Income Tax Rate Cut page |
| Wisconsin | graduated, four brackets 3.5% to 7.65% top rate (2025 Act 15 widened the 4.4% second bracket) | Not taxed (fully subtracted). | Taxable, but from TY2025 (2025 Act 15, signed July 3, 2025): taxpayers age 67+ may exclude up to $24,000 each ($48,000 MFJ if both spouses qualify) of income from qualified retirement plans and IRAs – no income test (replaced the old $5,000 income-tested 65+ subtraction). Also exempt: pre-1964 WI state teacher/public retirement systems, and US uniformed-services pensions. Military: Military and uniformed services retirement pay fully exempt (Wis. Stat. § 71.05(6)(b)). Recent: 2025 Act 15 retirement exclusion ($24k/$48k, age 67+) first applies TY2025 and continues for 2026. | Wis. Stat. § 71.05(6)(b) as amended by 2025 Act 15; WI DOR Wisconsin Tax Bulletin 230 (July 2025); WI DOR Publication 106 (Tax Information for Retirees) |
| Wyoming | none | Not taxed (no state income tax). | Not taxed (no state income tax). Recent: None. | Wyoming imposes no personal income tax |
† Rows for Alabama, Idaho, Maryland, Michigan, Oregon, South Carolina rely partly on secondary sources or carry flagged uncertainty; verify with the cited statute or revenue department.
Checking this against AI answers
If you are cross-checking any figure on this page against an AI assistant, know where they fail. On settled statutory questions they did well in our testing; on tax bills that were introduced and then died they reported the failed bill as enacted law in every case we tried. AI Search and Failed Tax Legislation: A Statute-Verified Audit.
How to read this without fooling yourself
Three cautions from the data. First, “no income tax” is not “low tax” — the no-income-tax states typically recover revenue through property and sales taxes, which can matter more to a retiree who owns a home. Second, exclusions have fine print: age floors, income phase-outs, and public-vs-private pension distinctions decide whether the headline number applies to you. Third, this table moves every year — several 2026 figures here were changed retroactively by bills signed in spring 2026, which is why each row carries its statute or revenue-department citation and we re-verify annually.
The moving pieces a move won’t fix
Federal tax follows you everywhere: Social Security taxability (the 0%/50%/85% bands), required minimum distributions, Medicare IRMAA surcharges, and capital gains are federal questions. And the state where your estate pays tax is a separate table from the state where your income is taxed — see estate tax by state and probate cost by state before treating a move as a tax plan.
Weighing a retirement move? Model the whole picture
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Cite this page: Clear Money Guide, “Retirement Taxes by State 2026,” compiled from state statutes and revenue-department sources, July 2026. https://clearmoneyguide.com/retirement-taxes-by-state/ — free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Moving state? Four taxes change, not one
Most relocation comparisons price state income tax and stop. For a retiree, three others move at the same time — state estate tax, state inheritance tax, and what probate costs the people who inherit. Thirteen jurisdictions already exempt retirement-plan withdrawals entirely, so for those residents the income-tax saving from moving is exactly zero and the real money is at death. Corridor-by-corridor comparisons built from this same statute-cited dataset: retirement tax relocation.
Compare any two states yourself
The corridor pages cover the moves retirees make most often. For any other pair, the retirement tax comparison tool runs all 51 jurisdictions: pick two states and it returns the income-tax treatment of withdrawals, both death taxes and the probate fee model side by side. Enter an estate value and it tells you whether you cross either state’s estate-tax threshold — thresholds that run from Oregon’s $1,000,000 to Connecticut’s $15,000,000, several of them unindexed for years.
Which states should you even consider?
Published “best states to retire” lists blend an annual income-tax rate with a one-off estate threshold into a single score, which produces a ranking that is true for nobody. The personalised ranker takes your withdrawals and estate value and orders all 51 jurisdictions for your situation instead — Illinois ranks third for a $300,000 estate and drops off the list entirely at $6,000,000, because of a $4M cliff no listicle mentions.
Embed this table on your site
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<p style="font:13px/1.5 system-ui,sans-serif;margin:6px 0 0">Retirement tax data by state: <a href="https://clearmoneyguide.com/retirement-taxes-by-state/">Clear Money Guide</a></p>Methodology
This page was materially reviewed on July 23, 2026. Treatments were compiled from state statutes and revenue-department publications and independently spot-verified against primary sources, with corrections applied where 2026 legislation changed figures retroactively (e.g., Georgia HB 463); daggered rows note residual uncertainty. Nothing here is tax, legal, or personalized financial advice; state tax law changes every year and individual circumstances control — verify with the cited statute or a tax professional before acting. See our Editorial Policy, Corrections, Affiliate Disclosure, and Disclaimer.
State-by-state deep dives (2026)
Statute-cited guides combining retirement-income tax rules, estate and inheritance taxes, and probate costs for one state at a time: Florida · North Carolina · Pennsylvania · Michigan · Arizona · South Carolina · Tennessee · Texas · Georgia · New Jersey · Ohio · Kentucky · Washington · Illinois · Maryland · Virginia · Minnesota · Massachusetts · California · New York · Connecticut · Colorado · Missouri · Wisconsin · Indiana · Iowa · Maine · Delaware · Nebraska · New Hampshire · Nevada · Oregon · Alabama · Alaska · Arkansas · Hawaii · Idaho · Kansas · Louisiana · Mississippi · Montana · New Mexico · North Dakota · Oklahoma · Rhode Island · South Dakota · Utah · Vermont · West Virginia · Wyoming · Washington, D.C.. All 50 states and Washington, D.C. are now covered. New for 2026: the retiree tax changes that actually happened — and the widely reported ones that didn’t · does your state tax Roth conversions? · what a Roth conversion costs in 2026
Deferred compensation does not always move with you
Federal law stops your former state taxing retirement income — but for nonqualified deferred comp the protection has conditions most people never hear about:
- The 10-year rule — shorter payouts are not protected at all
- A lump sum follows you to your new state’s mailbox and your old state’s tax return
- California concedes the federal limit in its own statute — and sources what falls outside it
- New York uses a four-year ratio that the convenience rule quietly feeds
- Severance gets no protection