Updated October 9, 2026. Quick answer: This table covers 20 states so far. Of the first 18, 9 have no individual income tax that reaches a TSP withdrawal on the documents read; Michigan, Virginia and Wisconsin tax it; New York and Pennsylvania exempt it on stated conditions; and North Carolina, Oregon, Missouri and Hawaii depend on vesting, service dates, a cap or the plan’s funding. Of the 2 added later, Kansas exempts it and Arkansas taxes it after a $6,000 exemption. Every row comes from the state’s own documents, linked on the state’s page.
How the 20 states treat TSP withdrawals
Open a state’s page for the document quotes, the form line, a worked example at $30,000 and what the documents leave open.
| State | Treatment | Basis |
|---|---|---|
| Alaska | No state income tax | No individual income tax (Tax Division) |
| Arkansas | Taxed after $6,000 | Thrift savings plans named on line 16; first $6,000 of employment-related plan distributions exempt; 3.9% for 2025 |
| Florida | No state income tax | No personal income tax (Department of Revenue); Constitution bars one for residents |
| Hawaii | Partly or fully taxable | TSP named as a deferred compensation plan; employer-funded pension distributions not taxed |
| Kansas | Exempt | Schedule S line A14 names Thrift Savings Plans as exempt; K.S.A. 79-32,117 subtraction |
| Michigan | Taxed | Listed as not subtractable on Form 4884; 4.25% for 2025 |
| Missouri | Capped subtraction | Letter Ruling 8197: TSP withdrawals qualify for the public pension subtraction, up to a cap |
| Nevada | No state income tax | No state income tax on individuals (Department of Taxation) |
| New Hampshire | No state income tax | No tax on W-2 wages; Interest and Dividends Tax repealed after December 31, 2024 |
| New York | Exempt (advisory opinion) | Subtraction under Tax Law 612(c)(3)(ii) for federal employee and employer contributions |
| North Carolina | Taxed unless vested by 1989 (Bailey) | Deduction on Schedule S, line 20 only if vested before August 12, 1989; 4.25% for 2025 |
| Oregon | Partly subtractable | Subtraction by share of federal service before October 1, 1991; retirees only |
| Pennsylvania | Not taxed after retirement | Payments after you qualify for retirement and retire are not taxed; 3.07 percent otherwise |
| South Dakota | No state income tax | No state income tax (Department of Revenue) |
| Tennessee | No state income tax | Hall tax repealed for periods beginning January 1, 2021; never covered wages |
| Texas | No state income tax | No personal income tax (Comptroller Fiscal Notes) |
| Virginia | Taxed | Starts from federal AGI; subtraction only for contributions another state taxed; age deduction up to $12,000 |
| Washington | No state income tax | No individual income tax today; 9.9% tax on AGI over $1 million from January 1, 2028 |
| Wisconsin | Taxed | TSP payments are not exempt; general subtractions: $24,000 at 67 (from 2025), $5,000 at 65 |
| Wyoming | No state income tax | Individual income tax 0% (Legislative Service Office) |
Federal rules for nonresidents
Whatever a state does, federal law limits it for people who have left: “No State may impose an income tax on any retirement income” of an individual who is not a resident or domiciliary of that state (4 U.S.C. 114(a)). See CMG’s TSP withdrawal options page for the federal side.
States not yet covered
A state is added only when its own tax documents name the Thrift Savings Plan or, for states with no individual income tax, say so. Several states whose documents read start from federal income or cover only ’retirement income’ or ’pensions’ generically are left out until a document names the plan.
Related: TSP withdrawal options, and retirement taxes by state.
Each row comes from the state’s own tax documents; the first document for each state is linked below, and the rest are on the state’s page.
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Sources
- Personal Income (Tax Types): https://tax.alaska.gov/programs/programs/index.aspx?10001
- Florida Dept. of Revenue: Report Tax Violations: https://floridarevenue.com/taxes/compliance/Pages/violations.aspx
- 2025 N-11 Hawaii Resident Income Tax Instructions: https://files.hawaii.gov/tax/forms/2025/n11ins.pdf
- 2025 Michigan Retirement and Pension Schedule (Form 4884) Instructions: https://www.michigan.gov/taxes/-/media/Project/Websites/taxes/Forms/IIT/TY2025/4884-Instr.pdf
- Letter Ruling LR 8197: Withdrawals from a Thrift Savings Plan may be Retirement Benefits from other than Privately Funded Sources: https://dor.mo.gov/rulings/show/8197
- Income Tax in Nevada: https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/
- Interest & Dividends Tax: https://web.archive.org/web/2025/https://www.revenue.nh.gov/taxes-glance/interest-dividends-tax
- TSB-A-17(1)I Advisory Opinion Petition No. I160302A: https://www.tax.ny.gov/pdf/advisory_opinions/income/a17_1i.pdf
- Directive PD-99-1: https://www.ncdor.gov/taxes-forms/individual-income-tax/personal-taxes-division-directives/directive-pd-99-1
- 2025 Publication OR-17, Individual Income Tax Guide (Rev. 01-29-26): https://www.oregon.gov/dor/forms/FormsPubs/publication-or-17_101-431_2025.pdf
- PA Personal Income Tax Guide: Gross Compensation (DSM-12 08-2025): https://www.pa.gov/content/dam/copapwp-pagov/en/revenue/documents/formsandpublications/papersonalincometaxguide/documents/pitguide_grosscompensation.pdf
- Taxes (Individuals): https://dor.sd.gov/individuals/taxes/
- Hall Income Tax: https://www.tn.gov/revenue/taxes/hall-income-tax.html
- Texas is open for small business (Fiscal Notes, December 2025): https://comptroller.texas.gov/economy/fiscal-notes/industry/2025/small-biz-info/
- Tax Commissioner ruling 24-133 (Subtractions: Retirement Income: Thrift Savings Plan): https://www.tax.virginia.gov/laws-rules-decisions/rulings-tax-commissioner/24-133
- Income tax | Washington Department of Revenue: https://dor.wa.gov/taxes-rates/income-tax
- Publication 126, How Your Retirement Benefits Are Taxed (1/26): https://revenue.wi.gov/pubs/pb126.pdf
- Wyoming Statutory Tax Structure: Title 39: https://wyoleg.gov/InterimCommittee/2025/03-202506032-01WyomingtaxstructureratesandcollectionsJune32025.pdf
- 4 U.S.C. 114, Limitation on State income taxation of certain pension income (U.S. Code, GovInfo): https://www.govinfo.gov/content/pkg/USCODE-2023-title4/html/USCODE-2023-title4-chap4-sec114.htm
- 2025 AR1000F and AR1000NR Instructions: https://www.dfa.arkansas.gov/wp-content/uploads/2025_AR1000F_and_AR1000NR_Instructions.pdf
- 2025 Individual Income Tax (Kansas K-40 / Schedule S instruction booklet, IP21 file ip25): https://www.ksrevenue.gov/pdf/ip25.pdf
Sources: the primary documents linked above, read on October 7, 2026. General information, not tax advice. Your own facts decide the outcome, and a tax professional or the state agency itself is the right place to confirm anything consequential.