By state
Retirement tax rules by US state
Approximate effective income-tax rate, Social Security treatment, and notable retirement-income carve-outs for all 50 states + DC. Pick your state for the full picture, a worked example, and a state-specific FAQ.
New here? Start with the big picture — does your state tax your retirement income? — then drill into your state below.
Federal brackets are set and permanent after the 2025 tax law; state rules vary widely. See the federal 2026 breakdown.
Last reviewed May 3, 2026
Editorial review pending — see editorial process
| State | Effective rate | Taxes SS? | Notable carve-out |
|---|---|---|---|
| Alabama | 4.50% | No | Alabama fully exempts defined-benefit PENSION income and Social Security, but TAXES 401(k) and IRA withdrawals at ~5% (65+ can exclude up to $12,000 of that in 2026). Your effective rate depends on your mix: a pension-heavy retiree pays close to $0; a 401(k)/IRA-heavy retiree pays more. The rate here reflects the taxed IRA/401(k) portion. |
| Alaska | 0.00% | No | — |
| Arizona | 2.50% | No | Flat 2.5% income tax (2023+). |
| Arkansas | ~2.3% | No | Arkansas excludes up to $6,000 of employer-pension and qualified-plan income PER PERSON (IRA distributions qualify after age 59½). Social Security is fully exempt. Income above the exclusion is taxed at ~3.9% effective. |
| California | 6.00% | No | 9.3% top bracket; $75k-$150k retirees usually land at 4-8% effective. Fully exempts SS. |
| Colorado | ~1.8% | No | Flat 4.4%. Colorado subtracts up to $24,000 of pension and annuity income (incl. IRA/401(k) distributions) PER PERSON at age 65+, and Social Security is fully exempt for 65+ — so a typical retiree owes little or nothing. (A 2025 bill, SB25-136, would remove the cap for 55+ starting 2026, but that expansion is not yet confirmed in effect.) Income above the subtraction is taxed at 4.4%. |
| Connecticut | 5.50% | Yes | Taxes SS above $75k single / $100k joint. Pension/IRA income partially excluded based on income. |
| Delaware | ~2.7% | No | Delaware excludes up to $12,500 of pension and eligible retirement income PER PERSON at age 60+. Social Security is fully exempt. Income above the exclusion is taxed at the state's graduated rates (~5.2% effective at retiree income). |
| Dist. of Columbia | 6.50% | No | DC fully exempts SS; effective rate covers IRA/401(k) and pension. |
| Florida | 0.00% | No | — |
| Georgia | ~0% | No | Flat 5.19% (2025; dropping toward 4.99%). Georgia excludes up to $65,000 of retirement income PER PERSON at 65+ ($35,000 at 62-64) — and the exclusion covers pension, IRA/401(k), and even interest/dividends/capital gains — so a typical 65+ retiree (or a couple up to $130k) owes about $0. Social Security is separately exempt. Income above the per-person cap is taxed at 5.19%. |
| Hawaii | 6.50% | No | Hawaii fully exempts employer-funded (non-contributory) PENSION income, military retirement, and Social Security, but TAXES 401(k) and traditional IRA distributions at graduated rates up to 11%. Your effective rate depends on your mix: a pension-heavy retiree pays close to $0; a 401(k)/IRA-heavy retiree pays a high rate. The rate here reflects the taxed IRA/401(k) portion. |
| Idaho | 5.80% | No | Flat 5.8% (2024+). Fully exempts SS. |
| Illinois | ~0% | No | Flat 4.95% income tax, but Illinois subtracts virtually all retirement income on IL-1040 Line 5 — Social Security, qualified pensions, 401(k)/403(b)/457 and IRA/SEP distributions (including amounts converted to a Roth IRA), plus government, military, and railroad retirement. A typical retiree owes about $0. The 4.95% still applies to non-qualified income: taxable brokerage interest/dividends/capital gains, rental income, wages, and non-qualified deferred comp. |
| Indiana | 3.00% | No | Flat 3.0% (2026; was 3.05%). Local county taxes add 0.5–3% on top. |
| Iowa | ~0% | No | Flat 3.8% income tax, but Iowa fully exempts retirement income for residents age 55 and older (2023 reform) — pensions, 401(k)/403(b)/457, IRA/SEP, annuities, and deferred comp, with no dollar cap. Social Security is also exempt. The 3.8% still applies to wages, interest/dividends, capital gains, and rental income. Under 55, retirement income is generally taxable. |
| Kansas | 5.40% | No | SS fully exempt as of 2024. Public-pension excluded; private retirement taxed. |
| Kentucky | ~1.1% | No | Flat 3.5% (2026; was 4.0%). Kentucky excludes up to $31,110 of retirement income PER PERSON — pensions, IRA/401(k), and Roth conversions — so a retiree with modest withdrawals owes little or nothing. Social Security is fully exempt. Income above the per-person cap is taxed at 3.5%. |
| Louisiana | 3.00% | No | Flat 3.0% (2025+). Excludes federal/state pension; up to $6k of other retirement income for 65+. |
| Maine | 6.50% | No | Maine excludes up to $48,216 (2025) of pension/IRA income per person, BUT that deduction is reduced dollar-for-dollar by your Social Security (which is itself exempt) and phases out above $125k income (single). Military pensions are fully exempt. Because the deduction nets against Social Security, a typical retiree's effective rate is lower than the ~6.5% shown. |
| Maryland | 5.00% | No | Maryland exempts up to $41,200 (2025) of income from EMPLOYER retirement plans (401(k)/403(b)/457/pension) for 65+, reduced dollar-for-dollar by Social Security (which is itself exempt); IRA distributions don't qualify for that exclusion. A local county income tax of ~2.25–3.2% also applies. Effective rate varies with your plan mix and Social Security. |
| Massachusetts | 5.00% | No | Flat 5%. Fully exempts SS. 4% surtax on income over $1M. |
| Michigan | 4.25% | No | Flat 4.25%. Public/private pension exclusions phasing back in for 2026 (PA 4 of 2023). |
| Minnesota | 7.00% | Yes | Taxes SS above $105k joint / $82k single (2025 thresholds, indexed). |
| Mississippi | ~0% | No | Flat 4.0% income tax on income over $10,000 (2026; phasing toward 3% by 2030). Mississippi exempts all qualified retirement income — pensions, 401(k)/403(b)/457, and IRA/SEP — once you meet your plan's retirement requirements. Social Security is also exempt. The 4.0% applies to wages, taxable brokerage income, and rental income. Caveat: EARLY distributions (before meeting your plan's retirement requirements) are taxable, though with no state early-withdrawal penalty. |
| Missouri | 4.20% | No | SS fully exempt as of 2024 (no income limit). Public-pension exclusions remain. |
| Montana | 5.90% | Yes | Taxes SS using federal-conformity formula. Top bracket 5.9%. |
| Nebraska | 4.55% | No | Top rate 4.55% (2026, final phase-down). SS fully exempt as of 2024. |
| Nevada | 0.00% | No | — |
| New Hampshire | 0.00% | No | Interest & dividend tax fully repealed for tax year 2025. |
| New Jersey | 6.37% | No | New Jersey excludes up to $100,000 (married joint) / $75,000 (single) of pension and retirement income at age 62+, but ONLY if total income is $150k or less (phasing 100%→50%→25% between $100k and $150k, gone above). Social Security is fully exempt. Eligible retirees under the limit often owe $0; the flat rate here applies once you exceed the income threshold. |
| New Mexico | 4.70% | Yes | Taxes SS above $100k single / $150k joint (2022 reform). |
| New York | ~2.7% | No | New York excludes up to $20,000 of private pension/IRA/401(k) income PER PERSON at 59½+, and Social Security plus NYS/local/federal government pensions are FULLY exempt (no cap). A retiree on Social Security + a government pension often owes $0; private-plan income above $20k is taxed at graduated rates (~6% effective at retiree income). |
| North Carolina | 4.25% | No | Flat 4.25% (2026; phasing toward 3.99% by 2027). SS fully exempt. |
| North Dakota | 1.80% | No | Three-bracket; ~1.5% effective at $75k-$150k. SS fully exempt as of 2021. |
| Ohio | 3.00% | No | Two-bracket (2.75%/3.5%). Retirement income credit up to $200. |
| Oklahoma | ~2.4% | No | Oklahoma excludes up to $10,000 of retirement income PER PERSON — pensions, IRA, and 401(k) distributions. Social Security is fully exempt. Income above the exclusion is taxed at ~4.4% effective. |
| Oregon | 8.50% | No | 9.9% top bracket; ~7-9% effective for retirees. SS fully exempt. |
| Pennsylvania | ~0% | No | Flat 3.07% income tax, but Pennsylvania does not tax retirement income once you reach retirement age — Social Security, qualified pensions, and 401(k)/403(b)/IRA distributions are all exempt. The 3.07% applies to wages, interest/dividends, capital gains, and rental income. Caveat: distributions taken BEFORE your plan's retirement age are taxed as compensation. |
| Rhode Island | 4.70% | Yes | Taxes SS above ~$95k single / $120k joint. Up to $20k pension/IRA exclusion for FRA+. |
| South Carolina | ~2.2% | No | At 65+, South Carolina lets you deduct $15,000 PER PERSON against ANY income (the separate $10k retirement-income deduction counts toward it). Social Security is fully exempt. Income above the deduction is taxed at the state's graduated rates (~4.4% effective at retiree income). |
| South Dakota | 0.00% | No | — |
| Tennessee | 0.00% | No | Hall income tax fully repealed 2021. |
| Texas | 0.00% | No | — |
| Utah | 4.55% | Yes | Flat 4.55%. SS partially taxable but with non-refundable credit that often zeroes liability for low/middle income. |
| Vermont | 6.00% | Yes | Taxes SS above $50k single / $65k joint (federal-conformity formula). |
| Virginia | 5.00% | No | Virginia gives an age-65+ deduction of up to $12,000 per person, but it PHASES OUT dollar-for-dollar as income rises above $50,000 (single) / $75,000 (married) — so higher-income retirees get little or none. Social Security is fully exempt. Lower-income 65+ retirees pay less than the ~5% shown. |
| Washington | 0.00% | No | No income tax. 7% capital-gains tax on long-term gains over $270k (2024 threshold) — applies to taxable brokerage withdrawals only. |
| West Virginia | 5.00% | No | SS tax fully phased out for 2026 (was 35% taxable 2025, 65% 2024). |
| Wisconsin | 5.30% | No | Top bracket 7.65%; ~5-6% effective at retiree income. SS fully exempt. |
| Wyoming | 0.00% | No | — |