How All 50 States Tax Retirees

Alabama taxes

A new law effective last year makes the first $6,000 or distributions from retirement plans (like IRAs and 401(k)s tax-exempt for retirees 65 and older in Alabama.

Income Tax on Taxable Income: Low of 2% (on up to $500 for single filers and $1,000 for joint filers) and a high of 5% (on more than $3,000 for single filers and $6,000 for joint filers)

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Partially taxable

More: Alabama State Tax Guide

Alaska taxes

Alaska doesn’t have a personal income tax, meaning that none of your retirement income is taxable on the state level.

Income Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: Alaska State Tax Guide

Arizona taxes

Arizona taxes most types of retirement income, but a new flat income tax rate, effective last year, might help lower your tax bill.

Income Tax on Taxable Income: 2.5% flat rate

Social Security: Not taxable
401(k) and IRA Distributions: Taxable
Pensions: Taxable (some types of pensions qualify for an exemption of up to $2,500)

More: Arizona State Tax Guide

Arkansas taxes

Arkansas is another state that taxes most types of retirement income, but taxpayers 59.5 or older can deduct up to $6,000 of eligible retirement income from their taxable income.

Income Tax on Taxable Income: Low of 0% (on up to $5,099) and a high of 4.4% (on more than $24,300)

Note: The tax rates above only apply to taxpayers with net incomes up to $84,500. Taxpayers with higher net incomes may reach higher tax brackets sooner.

Social Security: Not taxable
401(k) and IRA distributions: Taxable
Pensions: Taxable (military pensions are tax-exempt)

More: Arkansas State Tax Guide

California taxes

Most types of retirement income are taxable in California. Some retirees might pay an income tax rate as high as 14.4% (if they are still working and their taxable income reaches $1,000,000), but most retirees will pay a lower rate.

Income Tax on Taxable Income: California has ten income tax brackets, which is more than in most states. Rates range from 1% to 14.4%. Effective in 2024, a California tax expansion mandates a 1.1% payroll tax for employees making more than $1 million. So, if you’re a high earner who is still working during retirement, you could pay more state tax than you did last year.

Social Security: Not taxable
401(k) and IRA Distributions: Taxable
Pensions: Taxable

More: 10 Cheapest Places To Live in California

Colorado taxes

Although Colorado taxes Social Security benefits, some retirees can exclude all their Social Security benefits from their taxable income. Colorado also allows a retirement income deduction of up to $20,000 for taxpayers 55 and older. Retirees 65 and older may deduct up to $24,000.

Income Tax on Taxable Income: Flat rate of 4.4%

Social Security: Partially taxable for some retirees (fully deductible for taxpayers 65 and older)
Pensions: Partially taxable
401(k) and IRA Distributions: Taxable

More: Colorado EV Tax Credit Rises to $5,000

Connecticut taxes

Delaware taxes

Delaware taxes most types of retirement income, but the good news is that Delaware offers a pension exclusion that allows taxpayers 60 and older to deduct up to $12,500 of qualified retirement plans (including 401(k)s from their taxable income.

Income Tax on Taxable Income: Low of 0% (on up to $2,000) and a high of 6.6% (on more than $60,000)

Social Security: Not taxable
Pensions: Partially taxable
401(k) and IRA Distributions: Partially taxable

More: Most Expensive States for Retired Military Service Members

District of Columbia taxes

Most of your retirement income is taxable in DC. However, residents can deduct up to $3,000 of retirement income when filing their taxes. Washington DC has an estate tax on estates worth more than $4,528,800, and your heirs could pay up to 16% in taxes to call the estate their own.

Income Tax on Taxable Income: Low of 4% (on less than $10,000) and a high of 10.75% (on more than $1,000,000)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: District of Columbia Tax Guide

Florida taxes

There is no personal income tax in Florida. The state won’t tax your pension or any other type of retirement income. There are no estate or inheritance taxes either.

Income Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: 5 Reasons People Retire in Florida

Georgia taxes

Georgia taxes most retirement income, but the state offers a hefty retirement income exclusion. Taxpayers age 62 and older may exclude up to $35,000 of their retirement income, and those age 65 and older can exclude up to $65,000 of retirement income.

Income Tax on Taxable Income: Flat 5.49%

Social Security: Not taxable
Pensions: Partially taxable
401(k) and IRA Distributions: Partially taxable

More: Another New IRS Georgia Tax Deadline: What You Need to Know

Hawaii taxes

Hawaii exempts some retirement income, but income tax rates are on the high end for retirement income that is taxable. Hawaii also has an estate tax. The estate tax exemption is $5.49 million in Hawaii, and estates that exceed the exemption are taxed between 10% and 20%.

Income Tax on Taxable Income: Low of 1.4% (on up to $4,800 for joint filers and $2,400 for single filers) and a high of 11%

Social Security: Not taxable
Pensions: Not taxable (as long as you don’t make contributions)
401(k) and IRA Distributions: Taxable

More: States That Won’t Tax Your Pension

Idaho taxes

Idaho taxes most types of retirement income and has a flat tax rate. However, there are no estate or inheritance taxes in Idaho.

Income Tax on Taxable Income: 5.8% flat tax rate

Social Security: Not taxable
Pensions: Partially taxable (Some military and government pensions might qualify for an exemption)
401(k) and IRA Distributions: Taxable

More: Idaho State Tax Guide

Illinois taxes

Illinois is a state that exempts all retirement income. But there is an estate tax in Illinois, which has a $4 million exemption. Estates exceeding that value are taxed between 0.8% and 16%.

Income Tax on Taxable Income: Flat 4.95%

Social Security: Not taxable
Pensions: Not taxable
401k and IRA Distributions: Not taxable

More: States That Don’t Tax Retirement Income

Indiana taxes

Indiana has a low flat tax rate for taxable income, and that’s a good thing since the state only exempts Social Security. However, there are no estate or inheritance taxes in Indiana.

Income Tax on Taxable Income: Flat 3.05%

Social Security: Not taxable
401(k) and IRA Distributions: Taxable
Pensions: Taxable

More: Indiana State Tax Guide

Iowa taxes

Iowa recently made retirement income tax-exempt for residents 55 and older. Iowa has an inheritance tax, but it will be eliminated in 2025.

Income Tax on Taxable Income: High of 5.7% for 2024 (on more than 31,050 for single filers and more than $62,100 for joint filers)

(Note: Iowa will move to a flat tax rate of 3.9% in 2026.)

Social Security: Not taxable
Pensions: Not taxable
401k and IRA Distributions: Not taxable

More: Iowa State Tax Guide

Kansas taxes

Kansas only exempts retirement income for some retirees depending on adjusted gross income (AGI), but some state lawmakers are trying to expand the exemption to include more residents.

Income Tax on Taxable Income: Low of 3.1% (on up to $30,000) and a high of 5.7% (on more than $60,000)

Social Security: Partially taxable (Exempt for retires with an AGI of $75,000 or less)
Pensions: Taxable (Public pensions are exempt)
401(k) and IRA Distributions: Taxable

More: Kansas State Tax Guide

Kentucky taxes

Kentucky taxes most types of retirement income. However, some types of retirement income qualify for an exclusion. For example, there is a $31,110 deduction available for state, private and military retirement plans.

Tax on Taxable Income: Flat 4% for 2024

Social Security: Not taxable
Pensions: Partially Taxable
401(k) and IRA Distributions: Taxable

More: Kentucky State Tax Guide

Louisiane taxes

Louisiana taxes some retirement income, but there is an income exclusion of up to $6,000 for retirees age 65 and older. There is no inheritance tax in Louisiana.

Income Tax on Taxable Income: Low of 1.85% (on up to $12.500 for single filers and $25,000 for joint filers) and a high of 4.25% (on more than $50,000 for single filers and $100,000 for joint filers)

Social Security: Not Taxable
Pensions: Taxable (Public and government pensions are exempt)
401(k) and IRA Distributions: Taxable

More: States With the Lowest Property Taxes

Maine taxes

Maine taxes some forms of retirement income, but there is a pension exclusion of up to $30,000 ($35,000 in 2024). However, Maine has an estate tax. The estate exemption is $6.41 million, and heirs are taxed between 8% and 12%.

Income Tax on Taxable Income: Low of 5.8% (on up to $24,500 for single filers and $49,050 for joint filers) and a high of 7.15% (on more than $58,050 for single filers and $116,100 for joint filers)

Social Security: Not taxable
Pensions: Partially taxable (Federal pension income is exempt)
401(k) and IRA Distributions: Taxable

More: Tax Relief for Maine and Massachusetts Following Hurricane Lee

Maryland taxes

Maryland taxes some retirement income, and localities can tax your income. However, there is a pension exclusion of up to $34,300 for retirees aged 65 and older. Maryland has both an estate and inheritance tax. The estate tax exemption is $5 million, and the inheritance tax ranges from 0.9% to 10%.

Income Tax on Taxable Income: Low of 2% (on up to $1,000) and a high of 5.75% (on more than $250,000 for single filers and $300,000 for joint filers)

Social Security: Not taxable
Pensions: Partially taxed (due to pension exclusion)
401(k) and IRA Distributions: Taxable

More: States With the Highest Gas Taxes

Massachusetts taxes

Massachusetts taxes most retirement income and imposes an estate tax. The estate tax exemption is $2 million for 2024. Estate taxes can jump as high as 16% in the Bay State.

Tax on Taxable Income: Flat rate of 5%

(Note: Income over $1 million is subject to an additional 4% tax.)

Social Security: Not taxable
Pensions: Taxable (Government and public pension plans may be tax-exempt)
401(k) and IRA Distribution: Taxable

More: Massachusetts Millionaire’s Tax Funds Free K-12 School Lunches

Michigan taxes

For tax year 2023, retirees born in 1945 or before can deduct up to $61,518 ($123,036 for joint filers) of eligible retirement income. Retirees born between 1946 and 1952 may exclude up to $15,379.50 ($30,759 for joint filers) of eligible retirement income in 2023. Michigan recently passed legislation allowing retirees to claim the maximum pension deduction in 2026, regardless of age.

Tax on Taxable Income: Flat 4.25% for 2024 (4.05% for the 2023 tax year)

Social Security: Not taxable
Pensions: Partially taxable (Military pensions are tax-exempt)
401(k) and IRA Distributions: Partially taxable

More: Michigan State Tax Guide

Minnesota taxes

Minnesota taxes most retirement income. To make matters worse, the lowest income tax bracket is high in Minnesota when compared to other states. There is also an estate tax that applies to estates valued over $3 million. The bright side is Minnesota does not have an inheritance tax.

Tax on Taxable Income: Low of 5.3% (on up to $30,070 for single filers and $43,950 for joint filers) and a high of 9.85% (on more than $183,340 for single filers and $304,970 for joint filers)

Social Security: Partially taxable
Pensions: Taxable (Maryland allows a deduction for Military retirement pay)
401(k) and IRA Distributions: Taxable

More: IRS Will Tax Your ‘Walz Check’ Minnesota Rebate: What to Know

Mississippi taxes

Retirement income is exempt in Mississippi, but other types of income (including early withdrawals from retirement accounts) are still taxable. However, the income tax rate on taxable income is low, and it is set to decrease in the coming years.

Tax on Taxable Income: Flat 4.7% tax rate for 2024

(Note: Mississippi’s income tax rate will gradually decrease until it reaches 4% in 2026.)

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: Mississippi State Tax Guide

Missouri taxes

Missouri eliminated the tax on all Social Security retirement benefits, effective beginning with the 2024 tax year.

Tax on Taxable Income: Low of 2% (on up to $2,414) and a high of 4.8% (on more than $8,449)

Social Security: Not taxable
Pensions: Partially taxable (Public pensions are exempt.)
401(k) and IRA Distributions: Taxable

More: Missouri State Tax Guide

Montana taxes

Montana repealed several tax deductions, including the partial pension, annuity, and IRA deduction, for the 2024 tax year. Retirees can now deduct up to $5,500 of qualified retirement income.

Tax on Taxable Income: Low of 4.7% (on up to $20,500 for single filers and $41,000 for joint filers) and a high of 5.9% for taxable income exceeding those thresholds for 2024.

Social Security: Taxable (Partially deductible)
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Montana Property Tax Rebates and Other Relief for Homeowners

Nebraska taxes

Nebraska no longer taxes Social Security. However, retirees will still need to pay Nebraska income tax on other types of retirement income.

Tax on Taxable Income: For 2024, a low of 2.46% (on up to $2,999 for single filers and $5,999 for joint filers) and a high of 5.84% (on $$29,000 or more for single filers and $58,000 or more for joint filers)

Social Security: Not taxable for 2024
Pensions: Taxable: (Military retirement pay is exempt)
401(k) and IRA Distributions: Taxable

More: The Most Expensive States to Die In (Due to Death Taxes)

Nevada taxes

Nevada is one of the states with no income tax, so you don’t need to worry about having any of your retirement income taxed on the state level. There are no estate or inheritance taxes to worry about in Nevada either.

Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: 10 Most Tax-Friendly States for Retirees

New Hampshire

There is no state income tax in New Hampshire, so your Social Security, benefits, pension, and retirement distributions are safe. However, New Hampshire currently taxes interest and dividend income at 3% (4% for the 2023 tax year). This tax will be eliminated in 2025.

Tax on Taxable Income: N/A (with the exception of interest and dividend income)

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: New Hampshire State Tax Guide

New Jersey

New Jersey taxes most types of retirement income, but most retirees age 62 and older can deduct a significant portion of their taxable income. As long as your federal AGI doesn’t exceed $150,000, you can deduct the maximum amount allowed based on your filing status. The maximum deductions are $75,000 for single filers, $50,000 for married filing separately, and $100,000 for joint filers.

Tax on Taxable Income: Low of 1.4% (on up to $20,000) and a high of 10.75% (on more than $1 million)

Social Security: Not taxable
Pensions: Partially taxable (Income requirements apply)
401(k) and IRA Distributions: Partially taxable (Income requirements apply)

More: Most Expensive States for Millionaires

New Mexico taxes

Thanks to legislation passed last year, most New Mexicans won’t pay state income tax on their Social Security benefits. Taxpayers age 65 and older can deduct up to $8,000 from their taxable income, and income for residents 100 years and older is completely tax-exempt in New Mexico.

Tax on Taxable Income: Low of 1.7% (on up to $5,500 for single filers and $8,000 for joint filers) and a high of 5.9% (on more than $210,000 for single filers and $315,000 for joint filers)

Social Security: Taxable for single filers who earn more than $100,000 per year (more than $150,00 if married filing jointly)
Pensions: Partially taxable
401(k) and IRA Distributions: Partially taxable

More: New Mexico State Tax Guide

New York taxes

New York taxes most retirement income, but some taxpayers at least 59.5 years old can deduct up to $20,000 of qualified retirement income.

Tax on Taxable Income: Low of 4% (on up to $8,500 for single filers and $17,150 for joint filers) and a high of 10.9% (on more than $25,000,000 for all filers)

Social Security: Not taxable
Pensions: Taxable (Does not apply to federal, NYS, local, and military retirement income )
401(k) and IRA Distributions: Taxable

Note: You might qualify for New York’s $20,000 pension and annuity exclusion, even if your retirement income is classified as taxable above. You can view Publication 36 for more information and to see if your retirement income qualifies.

More: Low-Tax States Gain Residents From California and New York

North Carolina taxes

North Carolina taxes most types of retirement income. But the state has a low flat income tax rate, and that rate will drop even lower over the next few years.

Tax on Taxable Income: Flat rate of 4.5% for 2024

(Note: North Carolina’s income tax rate is set to gradually reduce until 2027 when it reaches 3.99%.)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: North Carolina State Tax Guide

North Dakota taxes

Recent legislation has made income tax in North Dakota affordable for many taxpayers. Even for retirement income that is subject to state income tax, the highest rate you will pay is 2.9%.

Tax on Taxable Income: Low of 0% (on up to $44,725 for single filers and $74,750 for joint filers) and a high of 2.9% (on more than $222,975 for single filers and $275,100 for joint filers)

Social Security: Taxable
Pensions: Taxable (Excluding military retirement pay)
401(k) and IRA Distributions: Taxable

More: North Dakota State Tax Guide

Ohio taxes

Ohio taxes most types of retirement income, but military retirement pay is tax-exempt, and the state’s tax brackets are low when compared with other states. There is no estate or inheritance tax in Ohio.

Tax on Taxable Income: Low of 2.75% (on between $26,051 – $100,000) and a high of 3.5% (on more than $100,000)

(Note: Ohio tax brackets depend on residency and filing status.)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Ohio State Tax Guide

Oklahoma taxes

Oklahoma offers an income tax exemption of up to $10,000 to retirees age 65 and older. There is no state estate or inheritance tax in Oklahoma.

Tax on Taxable Income: Low of 0.25% (on up to $1,000) and a high of 4.75% (on more than $7,200)

The highest income tax bracket is lower in Oklahoma than in many other states, but most Oklahoma taxpayers fall into the state’s highest bracket.

Social Security: Not taxable
Pensions: Partially Taxable
401(k) and IRA Distributions: Partially Taxable

More: Oklahoma State Tax Guide

Oregon taxes

Oregon’s income tax brackets are high compared to most other states, and the state taxes most types of retirement income. Oregon also has an estate tax that applies to estates valued over $1 million.

Tax on Taxable Income: Low of 4.75% (on up to $3,750 for single filers and $7,500 for joint filers) and a high of 9.9% (on more than $125,000 for single filers and $250,000 for joint filers)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Oregon ‘Kicker’ Credit: Who Qualifies and What’s It Worth?

Pennsylvania taxes

Pennsylvania doesn’t tax any traditional types of retirement income. Even other types of income are taxed at a low flat rate, but localities in Pennsylvania can impose local income taxes of their own.

Tax on Taxable Income: Flat rate of 3.07%

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: Pennsylvania State Tax Guide

Rhode Island taxes

Rhode Island taxes most types of retirement income. Income from military pensions is tax-exempt. The exemption amount for pension and annuity income is $20,000, which means some taxpayers may qualify for a total exemption of $40,000.

Tax on Taxable Income: Low of 3.75% (on up to $73,450) and a high of 5.99% (on more than $166,950)

Social Security: Partially Taxable (Income requirements apply)
Pensions: Partially Taxable
401(k) and IRA Distributions: 401(k) distributions (partially taxable) and IRA distributions (fully taxable)

More: States That Tax Social Security Benefits

South Dakota taxes

You won’t pay any state income taxes in South Dakota. That’s because there is no personal income tax in South Dakota. There is no estate or inheritance tax in the state either.

Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: South Dakota State Tax Guide

Tennessee taxes

Tennessee is another state with no income tax, so there is no state tax liability on your retirement income. You don’t need to worry about leaving your heirs with a big state tax bill either. Tennessee doesn’t have an estate or inheritance tax.

Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: States That Still Tax Groceries

Texas taxes

There is no personal income tax in Texas. That means none of your retirement income will be taxed at the state level. There are no estate or inheritance taxes in Texas either.

Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: Three Reasons to Move to Texas

Utah taxes

Utah taxes most retirement income. The state stopped taxing military retirement pay three years ago. Eligible retirees can claim a retirement tax credit of up to $450.

Tax on Taxable Income: Flat rate of 4.65%

Social Security: Taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Utah State Tax Guide

Vermont taxes

Many retirees will pay income tax in Vermont. However, Social Security recipients with an AGI of $65,000 or less (if married filing jointly) may qualify for an exemption.

Additionally, Vermont allows a deduction of up to $10,000 for military retirement pay and another deduction of up to $10,000 for some other types of retirement income (including government pensions). The same income requirements apply for the deduction as for the Social Security exemption.

Tax on Taxable Income: Low of 3.35% (on up to $39,600 for single filers and $66,150 for joint filers) and a high of 8.75% (on more than $200,200 for single filers and $273,450 for joint filers)

Social Security: Partially taxable
Pensions: Partially taxable
401(k) and IRA Distributions: Taxable

More: Vermont Childcare Bill: What Families Should Know

Virginia taxes

Virginia taxes most types of retirement income. However, retirees age 65 and older may qualify for a tax deduction of up to $12,000. The deduction is decreased if the taxpayer’s AGI exceeds the income threshold ($62,000 for single filers and $87,000 for joint filers).

Tax on Taxable Income: Low of 2% (on up to $3,000) and a high of 5.75% (on more than $17,000)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Virginia State Tax Guide

Washington taxes

Washington doesn’t have a personal income tax, so you won’t pay state income tax on your retirement benefits. Washington’s capital gains tax is 7% on the sale of some long-term capital assets (such as stocks and bonds) that exceed $250,000 in one year.

Tax on Taxable Income: N/A

Social Security: Not taxable
Pensions: Not taxable
401(k) and IRA Distributions: Not taxable

More: Capital Gains Tax Upheld in Washington

West Virginia taxes

West Virginia stopped taxing Social Security two years ago, and West Virginia police pensions are also tax-exempt. Some pensions qualify for a partial pension exclusion (such as some public and government pensions). However, most retirement income is subject to tax in West Virginia. Legislation passed last year reduced the tax rate for taxable income.

Tax on Taxable Income: Low of 2.36% (on up to $10,000) and a high of 5.12% (on more than $60,000)

(Note: Income tax rates may differ if you are married and filing separately.)

Social Security: Not taxable
Pensions: Taxable (exclusions apply)
401(k) and IRA Distributions: Taxable

More: West Virginia State Tax Guide

Wisconsin taxes

Wisconsin taxes most types of retirement income. However, Social Security isn’t taxed, and taxpayers age 65 and older won’t pay tax on income from federal, local, or state retirement plans (including military retirement benefits).

Tax on Taxable Income: Low of 4% (on up to $11,970 for single filers and $15,960 for joint filers) and a high of 7.65% (on more than $263,480 for single filers and $351,310 for joint filers)

(Note: Some retirees age 65 or older may deduct up to $5,000 of income from a qualified retirement plan. However, income must not exceed the $15,000 for single taxpayers ($30,000 for joint filers.)

Social Security: Not taxable
Pensions: Taxable
401(k) and IRA Distributions: Taxable

More: Milwaukee Sales Tax Increase: What it Means for Residents

Wyoming taxes

Wyoming is one of the states with no personal income tax, so you won’t need to pay state income tax on your retirement income or any other type of earnings.

Tax on Taxable Income: N/A