Retirement Tax Calculator by State

Quick answer: which states tax retirement income least?

Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming. Illinois, Mississippi, Pennsylvania and Iowa (from age 55) exempt nearly all pension, 401(k) and IRA income too, and several others exempt so much that a typical retiree pays little or nothing. But the answer depends on your mix: a large IRA, a government pension or military pay each changes which states come out cheapest. The calculator above runs your own numbers through every state's 2026 rules.

A retired couple's income in every state

Married couple, ages 68 and 66, $24,000 private pension, $30,000 of IRA withdrawals, $48,000 of Social Security and $7,000 of interest and dividends, 2026 rules, local taxes not included. They'd pay no state income tax in 17 states: the nine without one plus Georgia, Illinois, Iowa, Maine, Maryland, Michigan, Mississippi, North Dakota. The highest:

A single 70-year-old living on $60,000 of IRA withdrawals and $30,000 of Social Security sees a different list: $0 in Georgia, $1,671 in New York, $1,607 in California and $3,718 in Oregon.

States that don't tax pensions or 401(k) withdrawals

• No income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
• Exempt (with conditions): Illinois (IL DOR), Mississippi, Pennsylvania (after retirement; IRAs from 59½), Iowa (from 55, Iowa DOR) and, in 2026, Michigan up to its limit (Michigan Treasury).
• Pensions but not IRAs: Alabama and Hawaii exempt employer pensions but tax IRA withdrawals (Alabama exempts $6,000 of them at 65+); Maryland's and Rhode Island's exclusions cover employer plans but not IRAs.
• Large exclusions: Georgia ($65,000 a person at 65+, Georgia DOR), New Jersey (up to $100,000 joint at 62+ with income up to $150,000, NJ Taxation), Kentucky ($31,110 a person, KY DOR), Wisconsin ($24,000 a person at 67+, WI DOR), Connecticut (all of it below $75,000 of AGI, $100,000 joint, CT DRS).

How each state taxes retirement income in 2026

Amounts are per person unless the state sets them per return. Ages are at the end of the year. Separately from these, many states give everyone 65+ (and blind people) an extra standard deduction, exemption or credit, such as Oregon's $1,200 ($1,000 married), Virginia's $800, New Jersey's $1,000 and California's $153 credit; the calculator includes them. Each state's rules have details the calculator simplifies; the notes under your result list them.

Government pensions: your own state, another state or federal

Many states exempt their own public pensions and federal civil service pensions but tax other states' pensions like private ones: New York exempts New York and federal pensions in full but gives other states' pensions only its $20,000 exclusion (NY DTF); Kansas, Louisiana and Massachusetts work similarly. Alabama and Hawaii exempt government pensions from any state. A single 67-year-old with a $45,000 federal pension, $10,000 of IRA withdrawals and $20,000 of Social Security pays $0 in New York, $1,900 in Virginia, $221 in Maryland and $1,187 in California. Choose where your pension comes from in the form.

Military retired pay: state tax in 2026

Most income-tax states now exempt military retired pay in full. Still taxing it in full: the District of Columbia and Oregon (except pay for service before October 1991). Partial: California ($20,000 below $125,000 of AGI, $250,000 joint, from 2025, FTB), Virginia ($40,000 a person, Virginia Tax), New Mexico ($30,000), Kentucky (within its $31,110 pension exclusion), Idaho (up to a cap reduced by Social Security), Maryland ($12,500, $20,000 at 55+), Delaware ($12,500), Georgia under 62 ($17,500 to $35,000; a 2025 law raises it to $65,000 under 65, which Georgia lists as starting in 2027), Colorado under 55 ($15,000), Montana (50% for retirees working in Montana, not modeled), Vermont (full up to $125,000 of AGI) and Utah (a credit). For a 48-year-old retiree with $36,000 of military pay and $70,000 of wages, married, the state tax ranges from $0 in North Dakota to $6,870 in Oregon among income-tax states.

Age rules and income limits

• Age: Iowa (55), Colorado (55 and 65), New York (59½), Delaware (60), Georgia, New Jersey and Indiana's federal-annuity break (62), Alabama, Idaho, Louisiana, Maryland and South Carolina (65), Wisconsin (67), Rhode Island (full retirement age), and 65+ deductions on any income in Virginia, Montana, New Mexico and West Virginia, plus Utah's credit for people born in 1952 or earlier. Breaks are usually per person, so each spouse's age counts.
• Income limits: Connecticut and Vermont phase out, New Jersey steps down to nothing at $150,000, Rhode Island and California's military exclusion stop at a cliff, Virginia's 65+ deduction shrinks dollar for dollar above $50,000 ($75,000 married), Missouri's private pension break and New Mexico's 65+ exemption are for low incomes, Ohio's credits end at $100,000, Utah's age credit shrinks above $25,000 ($32,000 joint), and Maine's deduction phases out above $125,000 ($250,000 joint).
• Offsets: Colorado, Maine, Maryland, Idaho, Indiana, Missouri (public pensions) and West Virginia (its 65+ break) reduce their retirement break by Social Security, so retirees with large benefits get less of it.

Social Security

Only eight states tax any Social Security in 2026, most with income limits or credits that spare typical retirees; West Virginia's exemption is complete from 2026. The calculator applies each state's rule. For the federal tax on benefits and each state's details, see the Social Security tax calculator.

Moving in retirement

Your new home state taxes your retirement income once you live there. Federal law bars your old state from taxing the retirement income of nonresidents: payments from qualified pension and 401(k) plans, IRAs, 457 plans and government and military pensions; nonqualified deferred pay is covered only when paid over 10+ years or for life (4 U.S.C. § 114). In the year you move you may file part-year returns in both states. Income tax is only part of the picture: property, sales and estate taxes and the cost of living matter too.

What changed for 2026

• Michigan: the phase-in of its retirement subtraction is complete; anyone can subtract qualifying income up to the full limit (Michigan Treasury).
• Connecticut: IRA withdrawals become 100% subtractable below its income limits (CT DRS).
• West Virginia: Social Security is fully exempt.
• From 2025, still in force: Wisconsin's $24,000 exclusion at 67+ (WI DOR), Rhode Island's $50,000 (RI Taxation), Louisiana's $12,000 at 65+ and California's military exclusion.
• Oregon: its retirement income credit expired after 2025.

Common questions

Which states don't tax any retirement income?

The nine without an income tax, plus Illinois, Mississippi and Pennsylvania for most pension, 401(k) and IRA income received after retirement, and Iowa from age 55.

Does California tax 401(k) withdrawals?

Yes, at its regular rates, like pensions and IRAs. For the example couple above, California's tax is $158.

Does New York tax pensions?

Not New York State, New York local or federal pensions. Private pensions, 401(k)s, IRAs and other states' pensions get a $20,000 exclusion per person from age 59½; the rest is taxed (NY DTF).

Will my old state tax my pension after I move?

No, for pensions, 401(k)s and IRAs paid while you live elsewhere (4 U.S.C. § 114).

Are Roth IRA withdrawals taxed by states?

Qualified Roth withdrawals are tax-free federally and in every state that starts from federal income; don't enter them.

Do RMDs and QCDs count?

Required minimum distributions are IRA withdrawals: enter them (our RMD calculator works out the amount). A qualified charitable distribution paid straight to charity isn't income; see how a QCD lowers your tax.

What's the most tax-friendly state for retirees?

For income tax, the nine no-tax states, then the states that exempt your kind of income. A Social Security-heavy retiree pays little almost anywhere; an IRA-heavy retiree does best in Illinois, Mississippi, Pennsylvania, Iowa or Michigan; a military retiree has dozens of states that exempt military pay. Run your numbers above; for a lump sum offer, the pension lump sum calculator compares it with the monthly pension.

Sources

1. 4 U.S. Code § 114, Limitation on State income taxation of certain pension income — Legal Information Institute, Cornell Law School. Accessed October 18, 2026.
2. Retirement income exclusion — Georgia Department of Revenue. Accessed October 18, 2026.
3. Information for seniors — New York State Department of Taxation and Finance. Accessed October 18, 2026.
4. Retirement income (GIT-1 & 2) — New Jersey Division of Taxation. Accessed October 18, 2026.
5. Publication 120, Retirement income — Illinois Department of Revenue. Accessed October 18, 2026.
6. Retirement income tax guidance — Iowa Department of Revenue. Accessed October 18, 2026.
7. Retirement and pension benefits — Michigan Department of Treasury. Accessed October 18, 2026.
8. Social Security, pensions and annuities (income tax topics) — Colorado Department of Revenue. Accessed October 18, 2026.
9. Seniors' tax information (pensions and IRAs) — Connecticut Department of Revenue Services. Accessed October 18, 2026.
10. Military retirement pay exclusion — California Franchise Tax Board. Accessed October 18, 2026.
11. Pension exclusion worksheet (13A) — Comptroller of Maryland. Accessed October 18, 2026.
12. Publication 106, Wisconsin tax information for retirees — Wisconsin Department of Revenue. Accessed October 18, 2026.
13. Publication 2026-01, Retirement income guide — Rhode Island Division of Taxation. Accessed October 18, 2026.
14. Subtractions from income — Virginia Tax. Accessed October 18, 2026.
15. Schedule P (2025), pension income exclusion — Kentucky Department of Revenue. Accessed October 18, 2026.
16. Retirees: lower your individual income tax bill — South Carolina Department of Revenue. Accessed October 18, 2026.
17. Retirement credit — Utah State Tax Commission. Accessed October 18, 2026.
18. Pennsylvania personal income tax guide — Pennsylvania Department of Revenue. Accessed October 18, 2026.

Last checked October 18, 2026. State brackets and deductions come from our state income tax calculator's engine; each state's sources are on its paycheck calculator page.