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Homeโ€บUSโ€บBest States for Retirees Tax Comparison

Best States for Retirees Tax Comparison 2026

12 states charge $0 tax on retirement income. Compare all 22 major retirement states by Social Security, pension, and 401(k) tax treatment.

Enter your retirement income to rank states by tax
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Annual Social Security benefit
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Annual pension income
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Annual 401(k) or IRA distributions
Your current age
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#StateSS Taxed?Pension/401k TreatmentState TaxRating

How to Use This Tool

Tab “My Retirement Tax by State”

Enter your annual Social Security benefit, pension income, 401(k)/IRA withdrawals, filing status, and age. The tool calculates your estimated state income tax across 22 major retirement states and ranks them from lowest to highest. Each state shows whether Social Security is taxed, how pensions and 401(k) income are treated, the total estimated state tax, and a rating from Excellent ($0) to High Tax.

Tab “Top 10 Ranked”

A pre-calculated ranking of the best states for retirees based on a typical $65,000 retirement income ($30K Social Security + $20K pension + $15K 401k). The top tier is 9 no-income-tax states plus PA, IL, and MS which exempt all retirement income. Rankings shift at higher income levels — use the personalized tab with your actual numbers.

Tab “Compare 2 States”

Pick any 2 states from the database and see a side-by-side comparison of retirement tax treatment. The tool shows the annual state tax, effective rate, exclusions, and the cumulative savings over 5, 10, and 20 years of retirement.

The Rules

No-Income-Tax States (9): FL, TX, TN, NV, WY, SD, AK, NH, WA — $0 on everything

All-Retirement-Exempt States (3):
• Pennsylvania — 3.07% income tax but $0 on all retirement income after 59½
• Illinois — 4.95% income tax but $0 on SS, pensions, 401(k), IRA
• Mississippi — 5% income tax but $0 on all retirement income

Generous Exclusion States:
• Georgia — $65K exclusion at 65+ (covers most moderate retirees)
• New Jersey — $100K exclusion if income under $100K at 62+
• New York — $20K pension/annuity exclusion at 59½+
• Colorado — $24K retirement subtraction at 65+

Key Principle: Social Security is exempt in most states. The real differentiator is how each state treats pensions, 401(k), and IRA withdrawals.

Example

Maria — Retired Nurse, $65K Total Retirement Income, Single, Age 68

Social Security$30,000/yr
Pension (hospital)$20,000/yr
401(k) withdrawals$15,000/yr
Total retirement income$65,000/yr
Florida state tax$0
Pennsylvania state tax$0
New York state tax~$260
California state tax~$561
North Carolina state tax~$888

If Maria lives in Florida or Pennsylvania, she keeps 100% of her $65,000 at the state level. Moving from North Carolina to Florida would save $888/year — or $17,760 over a 20-year retirement. The gap widens dramatically at higher income levels.

State-by-State Quick Reference

How Each State Treats $65K Retirement Income (SS $30K + Pension $20K + 401k $15K)

FL, TX, TN, NV, WY, SD, AK, NH, WA$0
PA, IL, MS$0
Georgia (65+ exclusion)$0
New Jersey (under $100K)$0
New York~$260
Colorado~$484
Arizona~$510
California~$561
North Carolina~$888
South Carolina~$950
Virginia~$1,100

Frequently Asked Questions

Nine states have no state income tax at all: Florida, Texas, Tennessee, Nevada, Wyoming, South Dakota, Alaska, New Hampshire, and Washington. Beyond those, Pennsylvania, Illinois, and Mississippi exempt all retirement income (Social Security, pensions, 401(k), IRA distributions) from state taxation even though they levy an income tax on wages and other earned income. Georgia effectively exempts retirees with under $65,000 in retirement income through its age 65+ exclusion.
Most states do not tax Social Security. As of 2026, the vast majority of states with an income tax still exempt Social Security benefits entirely. A small number of states (Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, West Virginia) tax Social Security to varying degrees, though most offer partial exemptions based on income level. All 22 states covered in this tool exempt Social Security from state income tax.
For pure income tax savings, the 9 no-income-tax states (FL, TX, TN, NV, WY, SD, AK, NH, WA) are always best regardless of income level. Among income-tax states, PA, IL, and MS charge $0 on all retirement income. Georgia is excellent for moderate incomes under $65K. The “best overall” state depends on your full tax picture: property taxes (TX has high property taxes despite no income tax), sales taxes, cost of living, and lifestyle preferences all matter.
At $65,000 in retirement income, moving from a high-tax state to a no-tax state saves roughly $500–$2,000/year in state income tax. At $100,000+, savings climb to $2,000–$5,000/year. At $200,000+, savings can exceed $10,000/year. Over a 20-year retirement, these annual differences compound to $10,000–$200,000 in cumulative savings. Factor in moving costs, housing price differences, and quality-of-life considerations before deciding.
No. Pennsylvania exempts all retirement income from state income tax after age 59½. This includes Social Security benefits, public and private pensions, 401(k) withdrawals, IRA distributions (traditional and Roth), military retirement pay, and annuity income. Pennsylvania has a flat 3.07% income tax on wages, business income, and interest/dividends, but retirement distributions are completely exempt. This makes PA one of the most tax-friendly states for retirees despite having an income tax.

Related Calculators

🌴 Florida Retirement Tax Calculator
Detailed Florida retirement tax breakdown — $0 on all income sources.
🏙 Pennsylvania Retirement Tax Calculator
PA exempts all retirement income after 59½. See the full breakdown.
🌳 Georgia Retirement Tax Calculator
Georgia’s $65K exclusion at 65+ makes it a top retirement state.
💰 Social Security Tax Calculator
Calculate how much of your Social Security is taxable at the federal level.