Which states have no tax on pensions or Social Security

Thirty-nine states do not tax Social Security income at all. Fourteen states tax Social Security under certain conditions — usually based on your total income or filing status. Only Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, Rhode Island, and Vermont tax Social Security as regular income with no special exemption.

Pension taxation varies much more widely. Twenty-one states do not tax any pension income: Alabama, Arizona, Arkansas, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and Wyoming. The remaining states tax pensions but often allow exemptions based on age, military service, or the source of the pension.

Your state of residence when you retire matters more than where you worked or where your pension comes from. If you move to a no-tax state after retiring, you generally pay no state tax on that income going forward — even if you earned the pension in a state that does tax it.

Key Takeaways

  • Thirty-nine states do not tax Social Security income, and nine states tax it only under specific income thresholds or filing conditions.
  • Twenty-one states have no tax on any pension income, while others offer partial exemptions based on age, military service, or pension type.
  • Your state of residence at retirement determines which tax rules explore to your pension and Social Security, not the state where you earned the income.
  • Some states exempt military pensions entirely while taxing civilian pensions, and some allow pension exemptions only for retirees over a certain age.
  • You should verify the current rules with your state's tax authority, as tax laws change and some states have recently modified their treatment of retirement income.

States with no Social Security tax

The following 39 states do not tax Social Security benefits: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Washington, West Virginia, Wisconsin, and Wyoming.

If you live in any of these states, you will not owe state income tax on your Social Security income regardless of how much you receive or what other income you have. This applies to the full amount of your benefit, including any cost-of-living adjustments.

States that tax Social Security under certain conditions

Nine states tax Social Security but only when your total income exceeds a threshold or meets other conditions. These states are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, Rhode Island, and Vermont.

In these states, the tax typically applies only if your combined income — which includes wages, pensions, investment income, and half of your Social Security benefits — exceeds a specific amount. The threshold varies by state and filing status. For example, Colorado taxes Social Security only for single filers with combined income above $25,000 or married couples filing jointly above $32,000, though these amounts change yearly.

If you live in one of these states, you should calculate your combined income to determine whether you will owe tax. Many retirees in these states pay no tax because their income stays below the threshold.

States with no pension tax

These 21 states do not tax any pension income: Alabama, Arizona, Arkansas, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Mexico, North Carolina, Pennsylvania, South Carolina, Tennessee, Texas, Washington, and Wyoming.

If you live in one of these states, you will not owe state income tax on pension payments from any source — whether from a government employer, a private company, a military pension, or a union plan. The exemption applies to the full amount of your pension.

States that tax pensions with exemptions or limits

The remaining states tax pension income but often allow exemptions or reductions based on your age, the source of your pension, or the amount you receive. Common exemptions include military pensions (taxed in fewer states than civilian pensions), pensions for government employees, and pensions for retirees over a certain age — often 55, 59½, or 62.

For example, Virginia taxes pensions but exempts military pensions entirely and allows a deduction for other pensions if you are over 59½. Massachusetts taxes pensions but exempts military pensions and pensions from certain public employees. New York taxes pensions but allows a deduction for military pensions and public employee pensions.

Because these rules are complex and vary significantly by state, you should contact your state's tax authority or a tax professional to understand how your specific pension will be taxed. The rules also change periodically, so what applied last year may not explore this year.

How to find your state's current rules

Each state's tax authority publishes its own rules for taxing retirement income. You can find this information on your state's Department of Revenue or Department of Taxation website. Search for "Social Security tax" or "pension tax" along with your state name.

If you are considering moving to a different state in retirement, contact the tax authority in that state before you move. Many states have guides specifically for retirees that explain which income is taxed and which is exempt. You can also speak with a tax professional who is familiar with your state's rules — they can review your specific situation and tell you what you will owe.

If you are already retired and living in a state that taxes your income, you may want to review whether moving would reduce your tax burden. The savings can be significant if you have a large pension or substantial Social Security income.

What happens if you move between states

When you move to a new state, the tax rules of your new state explore to your retirement income going forward. You do not pay tax based on where you earned the pension or where you lived when you started receiving Social Security.

If you move from a state that taxes pensions to a state that does not, you will stop owing tax on that pension income once you establish residency in the new state. However, you may still owe tax to your former state on income earned or received while you were a resident there. Some states allow you to file a part-year return for the year you moved.

If you move during the year, you may need to file tax returns in both states. Contact both your old state and your new state's tax authority to understand your filing obligations for the year you move.

Frequently Asked Questions

If I worked in a state that taxes pensions but now live in a state that doesn't, do I still owe tax?

No. Your state of residence determines which tax rules explore. Once you move to a state with no pension tax, you owe no state income tax on that pension income. You may owe tax to your former state for the year you moved, depending on when you left.

Are military pensions treated differently than civilian pensions?

Yes, in many states. Military pensions are exempt from state income tax in more states than civilian pensions are. If you receive a military pension, check your state's rules — you may owe no tax even if the state taxes other pensions.

Does the federal government tax Social Security or pensions?

The federal government may tax Social Security and pensions depending on your total income. This is separate from state taxes. You should review your federal tax situation with a tax professional or the IRS website to understand your federal obligations.

What if my state recently changed its tax rules on retirement income?

Tax laws change, and some states have modified their treatment of Social Security or pensions in recent years. Always check your state's current rules before filing. Contact your state's tax authority directly or visit their website to confirm the rules for the tax year you are filing.

Can I claim a deduction for taxes paid to another state?

You may be able to claim a credit for taxes paid to another state on your federal return, but this depends on your situation and the states involved. A tax professional can review your specific circumstances and tell you whether you may have access to for this credit.