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State Withholding on Retirement Withdrawals: 43 States and DC (2026)

Updated October 9, 2026. Quick answer: This table covers 43 states and the District of Columbia so far. Of these, 8 withhold unless you opt out (Arkansas, California, Maine, Michigan, Minnesota, North Carolina, Oklahoma, Oregon); 6 tie state withholding to federal withholding (Iowa, Kansas, Maryland, Nebraska, Vermont, Virginia); 17 withhold on a one-time withdrawal only if you ask (Alabama, Arizona, Georgia, Idaho, Illinois, Indiana, Kentucky, Louisiana, Missouri, Montana, New Jersey, New Mexico, New York, North Dakota, Ohio, West Virginia, Wisconsin); 2 require it only on a lump sum (Connecticut, the District of Columbia); 9 have no individual income tax to withhold (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming); and 2 are unsettled in the documents read (Mississippi, Pennsylvania). Every row comes from the state’s own documents, linked on the state’s page.

How the 43 states and DC withhold

Open a state’s page for the document quotes, the form to start or stop withholding, and a worked $50,000 example.

StateRuleRate or form
AlabamaNot required; payer may withhold voluntarilyNo rate or form stated
AlaskaNone; no individual income taxNo rate
ArizonaNot required; on your written request0.5% to 3.5% of each payment; Form A-4P
ArkansasWithheld unless you opt out (5% on rollover-eligible plan payments is mandatory)3% flat on one-time payments, 5% on eligible rollover distributions; Form AR4P
CaliforniaWithheld unless you opt outPayer’s choice of method, including 10% of the federal amount; Form DE 4P
ConnecticutRequired only on lump sums; otherwise on request6.99% on a lump sum with no form; Form CT-W4P
FloridaNone; no personal income taxNo rate
GeorgiaLump-sum withdrawals only if you elect; periodic payments withheld unless you opt outWage withholding tables; Form G-4P
IdahoNot automatic; the payer might not withhold, so you askNo fixed rate; allowances and extra amount on Form ID W-4
IllinoisNot required; a taxpayer can request itNo rate stated in the answer read
IndianaNot required; written request onlyA flat whole-dollar amount per payment; Form WH-4P
IowaFollows federal withholding; none for qualifying recipientsPayers may use 3.8%; Form IA W-4P
KansasFollows federal withholdingNo pension rate stated; Form K-4 for allowances
KentuckyNot required; may be withheld voluntarilyNo rate or form stated in the guide read
LouisianaNot required; you may request itNo rate or form stated in the FAQ read
MaineWithheld unless an exemption is claimedA flat 5% on a one-time distribution when federal withholding applies (Rule 803); Form W-4ME
Maryland7.75% when federal withholding is mandatory on a rollover-eligible payout; otherwise only on request7.75% of the payment; on a request, a whole-dollar amount on Form MW507P
MichiganWithheld unless you opt out4.25% default for recipients born in 1946 or after; Form MI W-4P
MinnesotaWithheld unless you opt out6.25% default; Form W-4MNP
MississippiNo for qualifying retirement income; early or excess distributions may count as withholdable wagesNo rate stated
MissouriNot required on regular payments; the 2026 guide gives a lump-sum rate4.7% on lump sum distributions; Form MO W-4P for regular payments
MontanaNot required; you may request a flat amountA flat dollar amount each period; Form MW-4
NebraskaFollows federal withholding; IRA premature distributions exempt3.5% of the distribution; Form W-4N
NevadaNone; no personal income taxNo rate
New HampshireNone; interest and dividends tax repealed after 2024No rate
New JerseyNot required; voluntary on Form NJ-W-4P$10 or more per payment; no percentage
New MexicoNot required; written request to the payorNo percentage; payor need not withhold under $10.00
New YorkNot required; voluntary on Form IT-2104-P$5 a month minimum; annuity or pension payable over more than a year
North CarolinaWithheld unless you opt out4% flat on one-time distributions; Form NC-4P
North DakotaNot required; voluntary if the payer agreesA percentage or dollar amount you name; 2.5% if you name none
OhioNot required; you may request itEstimated tax apportioned over the year
OklahomaWithheld unless you opt out4.5% on nonperiodic payments and rollover-eligible distributions; Forms OK-W-4-R and OK-W-4-P
OregonWithheld unless you opt outCapped at 10 percent of a one-time distribution; Form OR-W-4
PennsylvaniaNo withholding rule for retirement distributions foundEmployer wage rate 3.07%; qualifying IRA distributions are not compensation
South DakotaNone; no individual income taxNo rate
TennesseeNone; Hall income tax repealed in 2021No rate
TexasNone; no personal income taxNo rate
VermontFollows federal withholdingEstimated at 30% of the federal amount
VirginiaFollows federal withholding; IRA payments exempt4% on one-time payments; Form VA-4P
WashingtonNone; no individual income tax todayNo rate today; a 9.9% income tax starts January 1, 2028 above $1 million
Washington, DCRequired only on a lump sum of the whole accountHighest DC income tax rate in effect at the time
West VirginiaNot required; on request with Form IT-104A dollar amount you enter on line 6
WisconsinNot required; on written request$5 minimum per payment; no rate stated
WyomingNone; individual income tax rate is 0%No rate

The federal rule every state starts from

The IRS says a taxable eligible rollover distribution paid to you from an employer plan is subject to “mandatory income tax withholding (generally at a rate of 20%)”, and that “The mandatory withholding doesn’t apply in a direct rollover”. See IRS Topic 413 and CMG’s 20% withholding on a pension lump sum page.

States not yet covered

A state is added only when its own tax documents state the withholding rule for retirement distributions. States whose documents could not be archived, or contradict themselves, are left out until a document settles them.

Related: 20% withholding on a pension lump sum, 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

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.

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