13 States with Zero Retirement Income Taxes: Here's Where They Are

Wondering which states won’t touch your retirement income? Good news — there are actually 13 states that don’t tax pensions, Social Security benefits, or retirement account withdrawals at all. Let’s break down the full picture so you can see where your retirement dollars stay in your pocket.

The Complete No-Tax Retirement List

If you want the full scoop, these 13 states have zero taxation on retirement income across the board:

Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

Living in any of these means your Social Security checks, pension payouts, 401(k) distributions, and investment dividends won’t face state income tax. However, keep in mind that the federal government still has its hand in the cookie jar for most retirees.

9 States with No Income Tax at All

Here’s something even better — nine states don’t tax income period, whether you’re working or retired:

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The catch? New Hampshire technically taxes interest and dividend income, though that’s changing starting 2025. After that shift, New Hampshire will join the other eight in having no income tax whatsoever.

Since states still need revenue, don’t be fooled — many compensate with higher sales taxes or property taxes. Always look at the total tax burden, not just income tax.

States That Specifically Protect Retirement Income

Beyond the nine income-tax-free states, four additional states don’t tax retirement income even though they tax regular wages:

Illinois, Iowa, Mississippi, and Pennsylvania offer this sweet benefit for retirees specifically.

Social Security: The 41-State Story

Social Security benefits get special treatment across most of the country. Here’s the really good news — 41 states plus Washington, D.C. don’t tax Social Security at all.

Only nine states do tax Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

Even in those states, many retirees pay little to nothing because income thresholds or age limits often exclude lower-income and older residents from the tax. Plus, this list has been shrinking — back in 2016, 13 states taxed Social Security, so momentum is moving in retirees’ favor.

The average monthly Social Security benefit sits around $1,979, roughly $23,750 annually. If you’re curious about your personal estimate, the Social Security Administration’s “my Social Security” account lets you see what you’ll receive.

Planning Your Retirement Strategy

Knowing which states don’t tax pensions or social security is just one piece of the puzzle. Real retirement planning requires estimating your total financial needs and building multiple income streams — whether that’s dividend stocks, pensions, annuities, or retirement account withdrawals.

Research your specific state’s complete tax picture, not just income tax. Factor in sales tax, property tax, and any other revenue sources your state taps. Then build a comprehensive retirement strategy that accounts for both state and federal taxation.

The bottom line: relocating to a tax-friendly state could meaningfully boost what you keep in retirement, but only if the overall financial plan makes sense for your situation.