State Taxes on Pensions, IRAs, and 401(k)s by State (2026 & 2027 Guide)

Retirement income taxes can vary dramatically depending on where you live.

Some states do not tax pensions, IRA withdrawals, or 401(k) distributions at all, while others tax some or all retirement income.

For retirees and future retirees, understanding these differences can help protect savings and improve long-term financial planning.

This guide covers all 50 states with direct links to individual state pages. Use it to compare how each state treats pensions, traditional IRAs, and 401(k) withdrawals.

Why Retirement Income Taxes Matter

Taxes in retirement can affect how long your savings last. Two retirees with the same nest egg may have very different outcomes depending on state tax laws.

Common retirement income sources include:

• Employer pensions
• Government pensions
• Traditional IRA withdrawals
• 401(k) distributions
• Roth account withdrawals
• Social Security benefits

Some states exempt all retirement income, some offer age-based deductions, and others tax withdrawals under normal income tax rules.

States With No Tax on Retirement Income

Many retirees look first at states with no personal income tax or broad retirement exemptions. These states can be attractive for people living on fixed income or drawing large annual distributions.

Example: A retiree withdrawing $50,000 per year from a traditional IRA may keep more after taxes in a state with no retirement income tax than in a high-tax state.

Browse All 50 State Pages

Alabama Taxes on Pensions, IRAs, and 401(k)s
How Alabama treats retirement withdrawals, pension income, and common exemptions for retirees.

Alaska Taxes on Pensions, IRAs, and 401(k)s
Alaska has no state income tax, making many retirement withdrawals state tax-free.

Arizona Taxes on Pensions, IRAs, and 401(k)s
Arizona retirement tax rules, including pension treatment and taxable distributions.

Arkansas Taxes on Pensions, IRAs, and 401(k)s
Arkansas offers certain retirement income exclusions and tax breaks.

California Taxes on Pensions, IRAs, and 401(k)s
California taxes many retirement withdrawals and is important for tax planning.

Colorado Taxes on Pensions, IRAs, and 401(k)s
Colorado offers deductions and age-based retirement tax benefits.

Connecticut Taxes on Pensions, IRAs, and 401(k)s
Connecticut retirement tax rules may depend on income and filing status.

Delaware Taxes on Pensions, IRAs, and 401(k)s
Delaware provides retirement income exclusions for many taxpayers.

Florida Taxes on Pensions, IRAs, and 401(k)s
Florida has no personal income tax, so retirement income is generally state tax-free.

Georgia Taxes on Pensions, IRAs, and 401(k)s
Georgia offers generous retirement income exclusions for qualifying residents.

Hawaii Taxes on Pensions, IRAs, and 401(k)s
Hawaii retirement taxes depend on the income source and plan type.

Idaho Taxes on Pensions, IRAs, and 401(k)s
Idaho taxes many retirement withdrawals but may offer selected deductions.

Illinois Taxes on Pensions, IRAs, and 401(k)s
Illinois is known for broad exemptions on retirement income.

Indiana Taxes on Pensions, IRAs, and 401(k)s
Indiana retirement distributions may be taxable with limited exemptions.

Iowa Taxes on Pensions, IRAs, and 401(k)s
Iowa has expanded retirement income exclusions for many retirees.

Kansas Taxes on Pensions, IRAs, and 401(k)s
Kansas retirement taxes can depend on income source and total income.

Kentucky Taxes on Pensions, IRAs, and 401(k)s
Kentucky offers pension exclusions and retirement tax relief options.

Louisiana Taxes on Pensions, IRAs, and 401(k)s
Louisiana exempts some retirement income, especially certain pensions.

Maine Taxes on Pensions, IRAs, and 401(k)s
Maine retirement tax treatment includes deductions and taxable withdrawals.

Maryland Taxes on Pensions, IRAs, and 401(k)s
Maryland offers pension exclusions and age-based retirement deductions.

Massachusetts Taxes on Pensions, IRAs, and 401(k)s
Massachusetts taxes retirement income differently depending on source.

Michigan Taxes on Pensions, IRAs, and 401(k)s
Michigan retirement tax rules continue evolving with expanded exemptions.

Minnesota Taxes on Pensions, IRAs, and 401(k)s
Minnesota may tax retirement income but offers selected subtraction benefits.

Mississippi Taxes on Pensions, IRAs, and 401(k)s
Mississippi is considered favorable for many retirees due to exemptions.

Missouri Taxes on Pensions, IRAs, and 401(k)s
Missouri offers retirement deductions based on income and eligibility.

Montana Taxes on Pensions, IRAs, and 401(k)s
Montana taxes many retirement withdrawals under state income tax rules.

Nebraska Taxes on Pensions, IRAs, and 401(k)s
Nebraska retirement tax treatment includes exemptions and phased changes.

Nevada Taxes on Pensions, IRAs, and 401(k)s
Nevada has no personal income tax, so retirement income is generally untaxed by the state.

New Hampshire Taxes on Pensions, IRAs, and 401(k)s
New Hampshire has phased out prior investment taxes and is retiree-friendly.

New Jersey Taxes on Pensions, IRAs, and 401(k)s
New Jersey offers retirement exclusions that may depend on income.

New Mexico Taxes on Pensions, IRAs, and 401(k)s
New Mexico taxes some retirement income but offers selected deductions.

New York Taxes on Pensions, IRAs, and 401(k)s
New York provides certain exclusions while taxing other retirement withdrawals.

North Carolina Taxes on Pensions, IRAs, and 401(k)s
North Carolina taxes retirement income under its flat tax system.

North Dakota Taxes on Pensions, IRAs, and 401(k)s
North Dakota retirement withdrawals may be taxable with available deductions.

Ohio Taxes on Pensions, IRAs, and 401(k)s
Ohio offers retirement-related credits and exemptions for some taxpayers.

Oklahoma Taxes on Pensions, IRAs, and 401(k)s
Oklahoma provides exclusions for certain pension income and retirees.

Oregon Taxes on Pensions, IRAs, and 401(k)s
Oregon taxes many retirement withdrawals but offers selected relief programs.

Pennsylvania Taxes on Pensions, IRAs, and 401(k)s
Pennsylvania is known for favorable treatment of many retirement distributions.

Rhode Island Taxes on Pensions, IRAs, and 401(k)s
Rhode Island offers retirement income modifications for eligible taxpayers.

South Carolina Taxes on Pensions, IRAs, and 401(k)s
South Carolina provides retirement deductions and senior tax benefits.

South Dakota Taxes on Pensions, IRAs, and 401(k)s
South Dakota has no personal income tax, making retirement income generally state tax-free.

Tennessee Taxes on Pensions, IRAs, and 401(k)s
Tennessee has no personal income tax, benefiting many retirees.

Texas Taxes on Pensions, IRAs, and 401(k)s
Texas does not tax personal income, so many retirement withdrawals are untaxed by the state.

Utah Taxes on Pensions, IRAs, and 401(k)s
Utah taxes retirement income but offers credits for qualifying taxpayers.

Vermont Taxes on Pensions, IRAs, and 401(k)s
Vermont retirement tax treatment may depend on income thresholds.

Virginia Taxes on Pensions, IRAs, and 401(k)s
Virginia offers age-based deductions and veteran retirement benefits.

Washington Taxes on Pensions, IRAs, and 401(k)s
Washington has no personal income tax, making many retirement withdrawals tax-free at the state level.

West Virginia Taxes on Pensions, IRAs, and 401(k)s
West Virginia continues expanding retirement income tax relief.

Wisconsin Taxes on Pensions, IRAs, and 401(k)s
Wisconsin taxes many retirement withdrawals with some exemptions available.

Wyoming Taxes on Pensions, IRAs, and 401(k)s
Wyoming has no personal income tax, helping retirees keep more income.

Electronic Filing Recommendation 💻

• Review both federal and state tax rules before large withdrawals
• Compare retirement tax laws before relocating
• Keep records for pension and IRA distributions
• Use tax software or a professional for multi-state retirement planning

Summary

State taxes on pensions, IRAs, and 401(k)s can make a major difference in retirement income.

Some states offer full exemptions, while others tax withdrawals under regular income tax rules.

Use the state pages above to compare all 50 states and plan smarter for retirement.