States that don't tax Social Security or retirement benefits
Thirty-eight states do not tax Social Security income. An additional twelve states tax Social Security but exempt it for most retirees through age limits or income thresholds. Only a handful of states — including Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont — tax Social Security for at least some residents, though even these states often have exemptions based on age or income level.
The states with no Social Security tax at all are: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Retirement income from pensions, 401(k)s, and IRAs is treated differently from Social Security. Some states that tax Social Security offer full or partial exemptions for pension and retirement account withdrawals. The rules vary significantly by state and depend on your age, income level, and the type of retirement account.
Key Takeaways
- Thirty-eight states impose no tax on Social Security income at any income level.
- Twelve additional states tax Social Security only for higher-income retirees or those under a certain age, meaning many residents pay nothing.
- Pension and retirement account income (401(k), IRA, traditional pension) is taxed differently than Social Security and varies by state.
- States with no income tax at all — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — never tax any retirement income.
States that tax Social Security with income or age limits
Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont all tax Social Security, but most offer exemptions. The most common exemption is an age threshold: residents over 65 or 67 may pay no tax on Social Security, while younger retirees do. Colorado and Connecticut, for example, exempt Social Security for residents over 65.
Income limits also determine taxation in several states. Minnesota and Missouri both tax Social Security only if your combined income (adjusted gross income plus half your Social Security benefits) exceeds a threshold. In Minnesota, that threshold is $68,025 for married couples filing jointly as of recent years, though this figure changes annually. Missouri exempts Social Security entirely for residents over 62.
Kansas and Nebraska exempt all Social Security income for residents over 55 and 67, respectively. New Mexico phases out the exemption based on income. If you live in one of these states, your actual tax bill depends on your specific age and income — not all residents pay tax on Social Security.
How pension and retirement account withdrawals are taxed
Social Security and retirement account income are separate for tax purposes. A state might exempt Social Security entirely but tax withdrawals from a 401(k) or traditional IRA. Conversely, some states exempt pension income but tax Social Security.
States with no income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — tax neither Social Security nor retirement account withdrawals. In states with income tax, the rules depend on the account type and the state's specific exemptions. Illinois, for example, exempts all retirement income from pensions, 401(k)s, and IRAs, but does not tax Social Security anyway. Pennsylvania exempts all retirement income, including pensions and IRAs, but also does not tax Social Security.
States like New York exempt pension income for residents over 59½ but do not tax Social Security. Massachusetts exempts military pensions and some other government pensions but taxes other retirement account withdrawals. You need to check your specific state's rules for the type of account you are withdrawing from.
States with no income tax at all
Eight states have no income tax, which means they do not tax Social Security, pensions, 401(k) withdrawals, or IRA distributions: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states, your retirement income is not subject to state income tax regardless of the source.
These states fund government services through sales tax, property tax, and other revenue sources instead. Some have higher sales taxes to compensate for the lack of income tax. Before moving to a no-income-tax state for retirement, compare the total tax burden — including sales tax, property tax, and any local taxes — rather than assuming no income tax means the lowest overall cost.
How to find your state's specific rules
Your state's tax agency website lists the current rules for Social Security and retirement income taxation. Search for "[your state] Social Security tax" or "[your state] retirement income tax" to find the official information. Most state tax agencies publish guides specifically for retirees that explain exemptions, income thresholds, and age requirements.
If you are planning to move in retirement or have income from multiple states, contact your state's tax department directly. Rules change year to year, and income thresholds are adjusted annually for inflation. A phone call to your state revenue office takes minutes and gives you the exact rules for your situation rather than relying on general information.
What counts as retirement income for tax purposes
Social Security benefits are one type of retirement income. Others include distributions from traditional IRAs, 401(k)s, 403(b)s, and other employer-sponsored plans; income from pensions; and withdrawals from Roth IRAs (though Roth withdrawals are usually not taxed). Annuity payments and distributions from inherited retirement accounts also count as retirement income in most states.
The tax treatment depends on the account type and your state's rules. A traditional 401(k) withdrawal is treated differently from a Roth IRA withdrawal in some states. Military pensions, federal employee pensions, and state or local government pensions sometimes have their own exemptions separate from private pensions. If you have multiple sources of retirement income, each may be taxed under different rules.
Frequently Asked Questions
If I move to a state with no Social Security tax, do I have to pay back taxes to my old state?
No. You owe taxes to the state where you lived when you received the income. Once you establish residency in a new state, you pay that state's taxes going forward. Most states do not attempt to tax income you received while living elsewhere, but confirm your residency status with both your old and new state's tax agency if you have questions.
Does a state that doesn't tax Social Security also not tax my spouse's retirement income?
Not necessarily. Social Security and retirement account income are taxed separately. A state might exempt Social Security but tax 401(k) withdrawals, or vice versa. Check your state's rules for each type of income you receive. If you and your spouse have different income sources, you may owe different amounts of tax even in the same state.
What happens if I have Social Security income and a pension — do I pay tax on both?
It depends on your state. Some states exempt both, some tax both, and some exempt one but tax the other. Your combined income may also affect whether you owe tax. For example, if your state taxes Social Security only above a certain income level, your pension income counts toward that threshold. Review your state's rules for both income types together, not separately.
Are there any states that tax Social Security but not pensions?
Yes. Some states have different rules for different types of retirement income. For example, a state might tax Social Security for high-income retirees but fully exempt pension income. The reverse is also true — some states exempt Social Security but tax pensions. This is why you need to check your state's specific rules for each income source you have.
If I'm over 65, do I automatically pay no Social Security tax?
Only in states where age 65 or 67 is the exemption threshold. In states with no income tax, you never pay Social Security tax regardless of age. In states that tax Social Security with an age exemption, turning 65 or 67 may eliminate your tax bill — but check your state's exact age requirement and any other conditions that explore.