States that don’t tax your pension or Social Security

pension

(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

Social Security

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.

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

10 States that don’t tax pension or Social Security:

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

See also:

~Eowyn

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LophattTrue DanBill SArry deanSteven Broiles Recent comment authors
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Auntie Lulu
Guest
Auntie Lulu

I was happy to see that the State of Oregon does not tax my Social Security income–although they seem to financially plunder us in ever other conceivable method.

Great article!

I am truly heartsick when I think that two thirds of this nation’s citizens do not have more than $500.00 in savings should an emergency arise. I should imagine that these same folks suffer from persistent on-going anxiety over their financial state.

Alma
Member
Alma

Miami, oh, beautiful Miami (sarc) senior citizens whom own their homes must pay taxes on their property if not…… the county wins and we lose. The traffic is incredible on the highways and you pay high tolls every mile or so, otherwise you have to use neighborhood streets, slow traffic school zones, stop signs everywhere, taxes, taxes, and the local chiefsteins get richer, fatter and more corrupted.

TrailDust
Editor

So Massachusetts somehow comes out okay for once!

Shshshshshshsh!!!!! Please, nobody tell Elizabeth Warren!

Steven Broiles
Member

Very surprised that New York made the list. Don’t tell the Governor!

Bill S
Guest
Bill S

Initial reaction was “Horse manure”.
But – well – give them a chance!
So – Kindly explain to me how a state without an income tax (e.g. Wyoming) directly or indirectly taxes a pension?

True Dan
Guest

I see that Texas and Washington are on the list of states that do not tax social security. However, since these two states do not have personal income taxes, I wonder why they are not also on the list of states that do not tax public and private pensions.