State Tax Exemptions by State (2026 & 2027 Guide)

State tax exemptions can reduce taxable income, lower property taxes, eliminate taxes on certain purchases, and help residents keep more of their earnings.

Every state has different rules for income tax exemptions, homestead exemptions, retirement exclusions, business tax exemptions, and sales tax exemptions.

Below is a complete state-by-state guide to tax exemptions across all 50 states.

• Alabama Tax Exemptions
  Alabama offers tax exemptions for homeowners, retirees, veterans, dependents, and certain business purchases.
• Alaska Tax Exemptions
  Alaska has no state income tax and provides several property tax exemptions and local tax relief programs.
• Arizona Tax Exemptions
  Arizona provides tax exemptions for property taxes, retirement income, veterans, and qualifying nonprofit organizations.
• Arkansas Tax Exemptions
  Arkansas offers exemptions for retirement income, homestead property taxes, and certain sales tax purchases.
• California Tax Exemptions
  California provides tax exemptions for homeowners, Social Security income, veterans, nonprofits, and manufacturing equipment.
• Colorado Tax Exemptions
  Colorado offers homestead exemptions, retirement income exclusions, and property tax relief programs.
• Connecticut Tax Exemptions
  Connecticut provides tax exemptions for pension income, property taxes, veterans, and certain nonprofit organizations.
• Delaware Tax Exemptions
  Delaware offers retirement income exclusions, senior tax credits, and property tax relief programs.
• Florida Tax Exemptions
  Florida has no state income tax and provides strong homestead property tax exemptions for residents.
• Georgia Tax Exemptions
  Georgia offers retirement income exclusions, homestead exemptions, and veteran property tax benefits.
• Hawaii Tax Exemptions
  Hawaii provides tax exemptions for homeowners, retirees, and qualifying agricultural activities.
• Idaho Tax Exemptions
  Idaho offers property tax reductions, retirement benefit deductions, and homeowner exemptions.
• Illinois Tax Exemptions
  Illinois exempts many forms of retirement income and offers homestead property tax exemptions.
• Indiana Tax Exemptions
  Indiana provides deductions and exemptions for homeowners, veterans, and retirement income.
• Iowa Tax Exemptions
  Iowa offers property tax credits, retirement income exclusions, and agricultural tax exemptions.
• Kansas Tax Exemptions
  Kansas provides homestead refunds, property tax exemptions, and retirement tax exclusions.
• Kentucky Tax Exemptions
  Kentucky offers pension income exclusions, homestead exemptions, and veteran property tax benefits.
• Louisiana Tax Exemptions
  Louisiana provides homestead exemptions, retirement exclusions, and sales tax exemptions on certain items.
• Maine Tax Exemptions
  Maine offers property tax fairness credits, homestead exemptions, and retirement tax deductions.
• Maryland Tax Exemptions
  Maryland provides retirement income exemptions, homeowner tax credits, and nonprofit tax relief.
• Massachusetts Tax Exemptions
  Massachusetts offers exemptions for certain retirement income, veterans, and property taxes.
• Michigan Tax Exemptions
  Michigan provides homestead property tax credits and retirement income tax exemptions.
• Minnesota Tax Exemptions
  Minnesota offers property tax refunds, education-related exclusions, and retirement tax relief.
• Mississippi Tax Exemptions
  Mississippi exempts many retirement benefits and provides homeowner property tax exemptions.
• Missouri Tax Exemptions
  Missouri offers pension exemptions, property tax credits, and homestead tax relief programs.
• Montana Tax Exemptions
  Montana provides property tax assistance programs and retirement income exclusions.
• Nebraska Tax Exemptions
  Nebraska offers homestead exemptions, Social Security exclusions, and agricultural tax benefits.
• Nevada Tax Exemptions
  Nevada has no state income tax and provides property tax abatements and veteran exemptions.
• New Hampshire Tax Exemptions
  New Hampshire offers local property tax exemptions and does not tax wage income.
• New Jersey Tax Exemptions
  New Jersey provides property tax relief, retirement income exclusions, and veteran tax benefits.
• New Mexico Tax Exemptions
  New Mexico offers property tax exemptions, retirement deductions, and low-income tax relief.
• New York Tax Exemptions
  New York provides STAR property tax exemptions, retirement income exclusions, and sales tax exemptions.
• North Carolina Tax Exemptions
  North Carolina offers homestead exclusions, retirement income exemptions, and agricultural tax relief.
• North Dakota Tax Exemptions
  North Dakota provides property tax credits, retirement exclusions, and homestead tax programs.
• Ohio Tax Exemptions
  Ohio offers homestead exemptions, retirement income credits, and business tax exemptions.
• Oklahoma Tax Exemptions
  Oklahoma provides property tax freezes, retirement exclusions, and agricultural tax exemptions.
• Oregon Tax Exemptions
  Oregon offers property tax deferral programs, retirement credits, and nonprofit tax exemptions.
• Pennsylvania Tax Exemptions
  Pennsylvania exempts many forms of retirement income and offers property tax rebate programs.
• Rhode Island Tax Exemptions
  Rhode Island provides property tax relief and retirement income exemptions for qualifying residents.
• South Carolina Tax Exemptions
  South Carolina offers retirement deductions, homestead exemptions, and veteran tax relief.
• South Dakota Tax Exemptions
  South Dakota has no state income tax and provides property tax assistance programs.
• Tennessee Tax Exemptions
  Tennessee has no state income tax and offers property tax relief for homeowners and retirees.
• Texas Tax Exemptions
  Texas provides homestead exemptions, over-65 property tax protections, and veteran tax exemptions.
• Utah Tax Exemptions
  Utah offers retirement tax credits, homeowner exemptions, and property tax relief programs.
• Vermont Tax Exemptions
  Vermont provides homestead credits, retirement exclusions, and property tax adjustment programs.
• Virginia Tax Exemptions
  Virginia offers military retirement exemptions, homeowner tax relief, and veteran property tax benefits.
• Washington Tax Exemptions
  Washington has no state income tax and provides property tax exemptions for qualifying homeowners.
• West Virginia Tax Exemptions
  West Virginia offers homestead exemptions, retirement income deductions, and property tax credits.
• Wisconsin Tax Exemptions
  Wisconsin provides property tax credits, retirement income exclusions, and veteran tax programs.
• Wyoming Tax Exemptions
  Wyoming has no state income tax and offers property tax relief and homeowner assistance programs.

Summary

State tax exemptions can help reduce income taxes, property taxes, and sales taxes while providing valuable financial relief for homeowners, retirees, families, veterans, and businesses.

Because every state has different exemption rules, reviewing state-specific tax exemption programs each year can help taxpayers maximize savings and avoid overpaying taxes.