States that don’t tax your pension or Social Security

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by Dr. Eowyn


(a) 11 states that don’t tax public and qualified private pensions:

The states that are not on this list tax at least a partial amount or the total amount of public and private pensions. Some states will only tax private pensions, but not public pensions earned in that state.

  1. Alabama
  2. Alaska
  3. Hawaii
  4. Illinois
  5. Kansas
  6. Louisiana
  7. Massachusetts
  8. Michigan
  9. Mississippi
  10. New York
  11. Pennsylvania

(b) 5 states that tax both private and public pensions:

  1. California
  2. Indiana
  3. Nebraska
  4. Rhode Island
  5. Vermont

Source: Financial Web


Your Social Security benefits are taxable! Depending on your income, the federal government can tax up to 85% of your benefits. Happily, most states, 37 in all, exempt Social Security from state taxes; 9 of these states have no state income tax. However, some states that exempt Social Security benefits take a big bite out of other types of retirement income. Maryland, for example, excludes Social Security benefits from taxation, but distributions from individual retirement accounts (IRAs) are fully taxed.

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Here are the 37 states that don’t tax Social Security benefits (source: Kiplinger):

  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. California
  6. Delaware
  7. Florida
  8. Georgia
  9. Hawaii
  10. Idaho
  11. Illinois
  12. Indiana
  13. Iowa
  14. Kentucky
  15. Louisiana
  16. Maine
  17. Maryland
  18. Massachusetts
  19. Michigan
  20. Mississippi
  21. Nevada
  22. New Hampshire
  23. New Jersey
  24. New York
  25. North Carolina
  26. Ohio
  27. Oklahoma
  28. Oregon
  29. Pennsylvania
  30. South Carolina
  31. South Dakota
  32. Tennessee
  33. Texas
  34. Virginia
  35. Washington
  36. Wisconsin
  37. Wyoming
  38. Washington, DC
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  1. Alabama
  2. Alaska
  3. Hawaii
  4. Illinois
  5. Louisiana
  6. Massachusetts
  7. Michigan
  8. Mississippi
  9. New York
  10. Pennsylvania

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