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How much would I save, or pay, in state tax by moving in retirement?
Estimate the state income tax on your pension, IRA withdrawals and Social Security in two states side by side, with each state's 2026 rules and retiree exclusions.
Yearfold is a financial-education tool. It is not a registered investment adviser and does not provide personalized investment, tax, or legal advice. Results are probabilistic projections based on historical data and stated assumptions; they are not guarantees. Methodology
By Mindaugas Laucius · Last reviewed October 21, 2026
Difference in state income tax
$2,394 less a year
In Florida compared with North Carolina, on the same income.
From
North Carolina
$2,394 a year
- Structure:
- Flat 3.99% (2026)
- Social Security:
- not taxed
- Retiree break:
- Social Security exempt; Bailey-vested government pensions and 20-year military retirement exempt
Verified October 21, 2026.
North Carolina retirement tax guideTo
Florida
$0 a year
- Structure:
- No individual income tax
- Social Security:
- not taxed
- Retiree break:
- None — no tax on wages, pensions, IRAs or Social Security
Verified October 21, 2026.
Florida retirement tax guideIncome tax only, using each state’s effective rate and its simple per-person retiree exclusions. Property and sales taxes differ too, and income-tested breaks aren’t modeled; the state guides cover both.
How this works
States treat retirement income very differently. Nine have no tax on wage or retirement income at all; a few, such as Pennsylvania and Illinois, exempt most retirement income outright; many exclude a fixed amount per person once you reach a certain age; and a handful still tax part of Social Security.
For each state we start from your pension and IRA income plus Social Security, remove Social Security where the state exempts it, subtract a clean per-person retirement exclusion where one exists, and apply an effective rate drawn from that state's 2026 brackets. Each rule was checked against the state's revenue department on the date shown.
Treat the result as a first-pass estimate. Some exclusions depend on total income, the type of pension, or whether a benefit came from government service, and we flag those in each state's description rather than modeling every case. Income tax is only one cost of a move: property taxes, sales taxes, insurance and housing often matter as much.
Worked example: Moving from North Carolina to Florida with a $60,000 pension and $30,000 of Social Security
- North Carolina: flat 3.99% in 2026 and Social Security is exempt, so only the $60,000 pension is taxed.
- $60,000 × 3.99% = $2,394.
- Florida: no individual income tax, so $0.
Moving would cut state income tax by about $2,394 a year, before property and sales taxes are compared.
The full method behind every Yearfold number is on the methodology page.
Sources
- Yearfold — 2026 state retirement-tax table (per-state primary sources)
- Tax Foundation — state income tax rates, 2026
Rules verified against these sources on October 21, 2026.
Questions
Which states don't tax retirement income?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming have no tax on wages or retirement income. Illinois, Mississippi and Pennsylvania exempt most retirement income, and Iowa exempts it from age 55.
Can my old state tax my pension after I move?
No. Federal law (4 U.S.C. § 114) bars a state from taxing the retirement income of people who no longer live there, including pensions, 401(k) and IRA distributions.
Why is my estimate different from my tax software?
We use an effective rate and only the clean, per-person exclusions, without itemized deductions, credits or local income taxes. Your software works from your full return. The difference is usually small for a typical retiree, but it can be larger for high incomes or unusual pensions.
Does this include property tax or sales tax?
No, it estimates income tax only. Each state guide linked below covers property-tax relief for seniors and other costs, which can outweigh the income-tax difference.
See this in your full plan
The free 10,000-path calculator puts this answer next to everything else: savings, spending, Social Security, taxes, Medicare and a spouse, with the odds your money lasts. Your inputs from this tool carry over.
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