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By The Retirement Atlas · Last verified May 29, 2026

States that don't tax pension income in 2026

People search for states that do not tax pensions, but state retirement tax rules usually split pension income, Social Security, IRA withdrawals, 401(k) withdrawals, and local taxes.

Short answer

The cleanest group is states with no broad individual income tax.

Tax Foundation identifies Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming as states without a broad individual income tax. AARP tracks pension-specific exemptions separately because states can treat pensions, Social Security, IRAs, and 401(k)s differently.

Start here

What you actually came to find out

Plain answers first. Sources stay below for checking details.

Which states are the cleanest category?

The no broad individual income tax states are the simplest starting group.

Are pensions and IRAs treated the same?

Not always. State rules can separate pension income from retirement account withdrawals.

Does Social Security follow the same rule?

No. Social Security tax treatment can differ from pension treatment.

Why does it matter?

Moving states can change taxes, housing costs, health costs, and family logistics at the same time.

No broad income tax

9 states

Tax Foundation identifies nine states without a broad individual income tax in 2026.

Source trail: Tax Foundation

Pension-specific rules

Varies

AARP tracks states that do not tax pension payouts and states with exemptions.

Source trail: AARP

A neutral state-tax check starts with the state income-tax system, then separates pension income from Social Security, IRA withdrawals, 401(k) withdrawals, property taxes, and sales taxes.

Neutral landscape

The shape of the question

The search phrase is simple, but the tax answer has layers. Tax Foundation identifies states without broad individual income taxes, which is the cleanest first bucket.

Source trail: Tax Foundation

Pension-specific rules are a second bucket. AARP tracks states that do not tax pension payouts and states with exemptions.

Source trail: AARP

Social Security has to be separated from pensions. IRS Publication 915 explains federal Social Security taxation, while state treatment varies by state.

Source trail: IRS: Publication 915: Social Security and Equivalent Railroad Retirement Benefits

IRA and 401(k) withdrawals have their own trail. IRS Publication 590-B explains federal IRA distributions, then state rules decide the state layer.

Source trail: IRS: Publication 590-B: Distributions from Individual Retirement Arrangements

Curator core

What the authorities say

These sources are here for the reader who wants to check the work. The plain-English answer stays above them.

Source 01

Tax Foundation

State Individual Income Tax Rates and Brackets, 2026

Tax Foundation publishes state income-tax rate and bracket summaries, including states with no broad individual income tax.

Source framing

Tax Foundation identifies the states without broad individual income taxes and the states with rate structures.

Strongest for: state income-tax structure context

Read at Tax Foundation

Source 02

AARP

States That Do Not Tax Pension Payouts

AARP tracks state pension-tax treatment and explains why retirement income tax rules differ by state and income type.

Source framing

AARP separates states with no broad income tax from states that exempt some or all pension income.

Strongest for: consumer-facing state pension tax comparison

Read at AARP

Source 03

IRS

Publication 915: Social Security and Equivalent Railroad Retirement Benefits

Publication 915 explains the federal combined-income test for taxable Social Security benefits.

Source framing

IRS uses combined income and filing status to determine whether part of a Social Security benefit is taxable.

Strongest for: federal taxation of Social Security benefits

Read at IRS

Source 04

IRS

Publication 590-B: Distributions from Individual Retirement Arrangements

Publication 590-B is the IRS source for IRA distributions, Roth ordering rules, and required minimum distributions.

Source framing

IRS Publication 590-B explains distribution rules that matter after money leaves an IRA.

Strongest for: RMDs, Roth distribution rules, and IRA withdrawals

Read at IRS

Source 05

IRS

Tax Inflation Adjustments

The IRS annual inflation adjustment release is the primary source for federal brackets, standard deductions, and selected thresholds.

Source framing

IRS updates tax brackets, standard deductions, and many tax thresholds each year for inflation.

Strongest for: current federal tax-year thresholds

Read at IRS

Source 06

CFPB

Planning for Retirement

CFPB retirement resources help consumers compare retirement timing, Social Security, and income choices.

Source framing

CFPB frames retirement decisions as consumer choices that can be compared before action.

Strongest for: neutral consumer planning context

Read at CFPB

Plain-English forks

The forks people face

Most retirement questions hide a few smaller decisions. These are the practical pieces that change the plan.

Fork 01

Is the state a no-income-tax state?

Why it matters: No broad individual income tax is the cleanest state-tax category.

In real life: This fork changes whether pension income enters a state income-tax system at all.

What to look at: What to look at: Tax Foundation state income-tax tables.

Fork 02

Is the income a pension, IRA, 401(k), or Social Security?

Why it matters: States can treat different retirement income types differently.

In real life: This fork prevents one income type from standing in for all retirement income.

What to look at: What to look at: AARP state pension-tax summaries and state tax sources.

Fork 03

What other state costs change?

Why it matters: Property tax, sales tax, insurance, housing, and health costs can move in the other direction.

In real life: This fork keeps tax savings from being the only relocation variable.

What to look at: What to look at: the full retirement spending map.

Fork 04

Is the move permanent?

Why it matters: Residency, domicile, and time in each state can affect which state has taxing power.

In real life: This fork matters for snowbirds and part-year movers.

What to look at: What to look at: state residency rules and the household calendar.

Common questions

Quick answers

Short, plain answers for the questions people usually have next. The source trail stays available below.

Which states have no broad individual income tax in 2026?+

Tax Foundation identifies Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming as states without a broad individual income tax.

Does no income tax mean no retirement taxes at all?+

No. Other taxes and costs can still apply, including property taxes, sales taxes, insurance, and local costs.

Are pension income and IRA withdrawals taxed the same by states?+

Not always. AARP tracks pension-specific treatment, and IRA withdrawals follow their own federal distribution path before state rules apply.

Do all states tax Social Security the same way?+

No. IRS Publication 915 explains the federal rule, while states can have their own treatment.

Is moving for lower taxes always better?+

This page does not rank states. Housing, health care, insurance, family distance, and other costs also belong in the plan.

Where does state tax belong in a retirement plan?+

It belongs in the tax and relocation layer, next to spending, housing, health costs, and residency facts.

How this page is curated

This page uses Tax Foundation state income-tax tables, AARP pension-tax summaries, IRS Publication 915, IRS Publication 590-B, and IRS annual tax context. It separates no broad income tax from pension-specific treatment.

Read the planner methodology

Trust anchor

Sources used on this page

Every source named above is listed here in one place.

  1. AARP. States That Do Not Tax Pension Payouts

    https://www.aarp.org/money/retirement/states-that-dont-tax-pension-payouts/

  2. CFPB. Planning for Retirement

    https://www.consumerfinance.gov/consumer-tools/retirement/

  3. IRS. Publication 915: Social Security and Equivalent Railroad Retirement Benefits

    https://www.irs.gov/publications/p915

  4. IRS. Publication 590-B: Distributions from Individual Retirement Arrangements

    https://www.irs.gov/publications/p590b

  5. IRS. Tax Inflation Adjustments

    https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill

  6. Tax Foundation. State Individual Income Tax Rates and Brackets, 2026

    https://taxfoundation.org/data/all/state/state-income-tax-rates-2026/

Before you act on this

This plan is educational. It is not personalized financial, tax, or insurance advice. Projections illustrate the math, they do not predict the future. Talk to your own licensed financial professional before acting on any of it.