Which states tax retirement income?
9 states have no income tax on retirement income. 4 more leave most pension and retirement income untaxed, 22 tax it but with a retirement exclusion or deduction, and 16 tax it with only narrow exceptions.
Each state links to a page that quotes its revenue department and links to the document we read. Rules often depend on your age, your income and the kind of plan, so read the state's page before relying on the group it sits in. For Social Security specifically, see which states tax Social Security.
No state income tax 9
Most retirement income not taxed 4
Taxed, with a retirement exclusion 22
Taxed, with narrow exceptions 16
All 50 states and D.C.
| State | Pensions and retirement income | In short |
|---|---|---|
| Alabama | Taxed, with a retirement exclusion | Partly. Alabama exempts payments from qualifying defined benefit pension plans, and people 65 or older can exclude up to $6,000 of other taxable retirement income, such as IRA or 401(k) withdrawals. |
| Alaska | No state income tax | No. Alaska has no individual income tax, so pensions, IRA withdrawals and other retirement income are not taxed by the state. |
| Arizona | Taxed, with narrow exceptions | Yes. Arizona generally taxes the same part of a pension that is taxable on your federal return. Pensions from Arizona state and local governments and the federal government get a subtraction of up to $2,500, and military retired pay is excluded. |
| Arkansas | Taxed, with a retirement exclusion | Partly. Arkansas lets retirees exclude the first $6,000 of pension income from an employer-sponsored plan, or of traditional IRA withdrawals after 59½. Each spouse with qualifying income gets a separate $6,000. |
| California | Taxed, with narrow exceptions | Yes. California generally taxes pensions the same way the federal return does; its instructions say no adjustment is usually made for them. For 2025 through 2029 it allows an exclusion of up to $20,000 of military retirement pay. |
| Colorado | Taxed, with a retirement exclusion | Partly. From age 55, Colorado lets you subtract pension and annuity income up to $20,000 a year, or $24,000 at 65 or older. Military retirement and railroad benefits have their own subtractions. |
| Connecticut | Taxed, with a retirement exclusion | Partly. Connecticut has a subtraction for pension, annuity and traditional IRA income for filers below $100,000 of federal AGI ($150,000 for joint filers). Military retirement pay and railroad retirement benefits are fully exempt. |
| Delaware | Taxed, with a retirement exclusion | Partly. Delaware taxes pensions, but people 60 or older can exclude up to $12,500 of pension and eligible retirement income each, and those under 60 up to $2,000 of pension income. |
| District of Columbia | Taxed, with narrow exceptions | Yes. The District taxes the taxable part of pensions and annuities that is in your federal adjusted gross income. Its return has a subtraction for D.C. and federal government survivor benefits for survivors 62 or older. |
| Florida | No state income tax | No. Florida has no personal income tax, so pensions and other retirement income are not taxed by the state. |
| Georgia | Taxed, with a retirement exclusion | Partly. Georgia's retirement income exclusion is up to $35,000 at ages 62 to 64 (or younger and permanently disabled) and up to $65,000 at 65 or older, per person. It covers pensions, annuities, interest, dividends and other retirement income. |
| Hawaii | Taxed, with a retirement exclusion | Partly. Hawaii does not tax qualifying distributions from employer-funded pension plans, including government and military pensions. Plans you fund yourself, such as IRAs and 401(k) contributions, are treated as your own investments and taxed. |
| Idaho | Taxed, with narrow exceptions | Yes. Idaho taxes the pensions of residents and part-year residents. It offers limited deductions for some pensions under its Retirement Benefits deduction. |
| Illinois | Most retirement income not taxed | No. Illinois lets you subtract federally taxed retirement income from qualified employee benefit plans, including 401(k) plans, and from IRAs and self-employed retirement plans. |
| Indiana | Taxed, with narrow exceptions | Yes, generally. Indiana's deductions for retirement income are narrow: up to $16,000 of a federal civil service annuity at 62 or older, and all military retirement income. We found no general exclusion for other pensions or IRA withdrawals in the department's list of deductions. |
| Iowa | Most retirement income not taxed | No, from age 55. Since 2023 Iowa excludes retirement income from Iowa taxable income for taxpayers who are 55 or older, disabled, or certain survivors. |
| Kansas | Taxed, with a retirement exclusion | Partly. Kansas exempts KPERS and the other public retirement plans listed in its booklet, plus federal civil service and military retirement, including the Thrift Savings Plan. We found no exclusion for private pensions or IRAs in the booklet. |
| Kentucky | Taxed, with a retirement exclusion | Partly. Kentucky allows a pension exclusion of $31,110. |
| Louisiana | Taxed, with a retirement exclusion | Partly. From 2025, Louisiana lets people 65 or older exclude up to $12,000 of annual retirement income, adjusted each year for inflation. Benefits from the retirement systems on its list are also excluded. |
| Maine | Taxed, with a retirement exclusion | Partly. For 2025 Maine lets each person deduct up to $48,216 of eligible pension income, but that cap is reduced by any Social Security and railroad retirement benefits received. Military retirement pay has its own deduction. |
| Maryland | Taxed, with a retirement exclusion | Partly. If you are 65 or older or totally disabled, Maryland lets you subtract taxable pension income up to $41,200. IRAs do not qualify for it. |
| Massachusetts | Taxed, with a retirement exclusion | Partly. Massachusetts taxes most private pensions and annuities, but many government pensions are exempt. Traditional IRA withdrawals are taxable. |
| Michigan | Taxed, with a retirement exclusion | Partly, and growing. Michigan is phasing back in its retirement and pension subtraction: up to 75% of the limit for 2025 and up to 100% from 2026, based on private pension limits. |
| Minnesota | Taxed, with narrow exceptions | Yes, generally. Minnesota's main break is a subtraction for qualifying public pensions that were not earned with Social Security coverage, up to $13,540 single or $27,080 joint, with income limits. |
| Mississippi | Most retirement income not taxed | No. Mississippi generally does not tax retirement income, pensions and annuities once the plan's retirement requirements are met. Early distributions can be taxed. |
| Missouri | Taxed, with a retirement exclusion | Partly. Missouri has a public pension deduction of up to $47,633 per person for 2025 and a private pension deduction of up to $6,000 with income limits. |
| Montana | Taxed, with narrow exceptions | Yes. Montana starts from federal taxable income, so pensions that are taxed federally are taxed by Montana. People 65 and older get a $5,500 subtraction. |
| Nebraska | Taxed, with narrow exceptions | Yes, generally. Nebraska's return starts from federal adjusted gross income, so taxable pensions and IRA withdrawals are included. Military retirement benefits are fully excluded. |
| Nevada | No state income tax | No. Nevada has no state income tax on individuals, so pensions and retirement income are not taxed. |
| New Hampshire | No state income tax | No. New Hampshire does not tax wages or retirement income, and its tax on interest and dividends was repealed from 2025. |
| New Jersey | Taxed, with a retirement exclusion | Partly. If you are 62 or older (or disabled) and your total income is $100,000 or less, New Jersey lets you exclude taxable pension, annuity and IRA withdrawals up to $100,000 (joint), $75,000 (single) or $50,000 (married filing separately). The exclusion shrinks between $100,001 and $150,000 and ends above $150,000. |
| New Mexico | Taxed, with narrow exceptions | Yes. New Mexico taxes pensions. People 65 or older may get an exemption of up to $8,000 each, depending on income and filing status. |
| New York | Taxed, with a retirement exclusion | Partly. Pensions from New York State, its local governments and the federal government are fully subtracted at any age. Other pensions, annuities and IRA withdrawals qualify for an exclusion of up to $20,000 per person from age 59½. |
| North Carolina | Taxed, with a retirement exclusion | Partly. Under the Bailey decision, North Carolina excludes benefits from certain state, local and federal defined benefit plans for retirees who had five or more years of service as of August 12, 1989. We found no general exclusion for other pensions in NCDOR's materials. |
| North Dakota | Taxed, with narrow exceptions | Yes, generally. North Dakota's main retirement break is a deduction for military retirement benefits. We found no general exclusion for other pensions in the guidance we read. |
| Ohio | Taxed, with narrow exceptions | Yes. Ohio usually taxes retirement income other than Social Security and certain railroad and military benefits, though you may qualify for its retirement income credit. |
| Oklahoma | Taxed, with a retirement exclusion | Partly. Oklahoma lets each person exclude up to $10,000 of retirement benefits from the sources the Tax Commission lists, and 100% of federal civil service (CSRS) benefits paid in lieu of Social Security. |
| Oregon | Taxed, with narrow exceptions | Yes. Oregon taxes the pension income of residents. Some federal pensions for service before October 1991 can be partly or fully subtracted. |
| Pennsylvania | Most retirement income not taxed | No. Pennsylvania does not tax commonly recognized pension and retirement benefits paid after you are eligible to retire and have retired. Early distributions are taxable. |
| Rhode Island | Taxed, with a retirement exclusion | Partly. For 2025 Rhode Island exempts up to $50,000 of qualifying taxable pension and annuity income per person, for people at full retirement age with income under its limit. |
| South Carolina | Taxed, with a retirement exclusion | Partly. South Carolina taxes pension income, but you can deduct up to $3,000 of retirement income a year before 65 and up to $10,000 from 65. All military retirement income is deductible. |
| South Dakota | No state income tax | No. South Dakota has no state income tax. |
| Tennessee | No state income tax | No. Tennessee has no tax on earned income, and its tax on interest and dividends ended in 2021, so retirement income is not taxed. |
| Texas | No state income tax | No. Texas has no state income tax. |
| Utah | Taxed, with narrow exceptions | Yes. Utah taxes pensions and offers a retirement credit of up to $450 for people born on or before December 31, 1952, which shrinks with income. |
| Vermont | Taxed, with narrow exceptions | Yes, generally. Vermont's retirement breaks are specific: up to $10,000 of federal Civil Service Retirement System income for filers under its income limits, similar exclusions for certain other systems, and an exemption for military retirement income. |
| Virginia | Taxed, with narrow exceptions | Yes. Virginia generally taxes what is taxable federally, so pension and IRA distributions are usually taxable. People 65 and older may get an age deduction of up to $12,000, which shrinks with income for most. |
| Washington | No state income tax | No. Washington has no individual income tax today. A new 9.9% tax on adjusted gross income over $1 million starts January 1, 2028. |
| West Virginia | Taxed, with narrow exceptions | Yes, generally. West Virginia has an $8,000 senior citizen modification for people 65 or older, and certain public pension modifications. |
| Wisconsin | Taxed, with a retirement exclusion | Partly. Wisconsin taxes the same pension income that is taxable federally, but from 2025 people 67 or older can subtract up to $24,000 ($48,000 for a couple), and a $5,000 subtraction applies at 65 for lower incomes. |
| Wyoming | No state income tax | No. Wyoming has no individual income tax. |