RETIREMENT INCOME TAX · TAX YEAR 2026
Retirement income tax by state (2026)
What each state charges the same retirees on Social Security, a pension and IRA withdrawals in 2026, from lowest to highest. 25 states charge the single retiree nothing; Oregon charges the most, $1,525.
Your estimate
- California income tax
- $51.44
- Federal income tax
- $1,810.00
- Total income tax
- $1,861.44
Subtracted from California income
- Social Security
- $11,300.00
California credits
- Senior exemption credit
- $158.00
California does not follow the federal senior deduction. The separate $20,000 Survivor Benefit Plan exclusion and the senior head of household credit are not modeled.
State income tax on the same retirees
Each state's 2026 income tax on two retirees: a single filer aged 67 with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals, and a married couple filing jointly, both 67, with $20,000 of Social Security each and a $30,000 private pension and $20,000 of IRA withdrawals for one spouse. Federal income tax is the same in every state: $1,810 for the single retiree and $3,176 for the couple. Indiana figures include Marion County tax. Maryland figures include Montgomery County tax. New York figures exclude New York City tax.
| State and rule | Single | Married |
|---|---|---|
| AlabamaSocial Security and defined-benefit pensions exempt; first $6,000 of IRA and 401(k) income exempt from 65 | $0 | $0 |
| AlaskaNo income tax | $0 | $0 |
| ColoradoSocial Security exempt at 65; pension and IRA subtraction up to $24,000 at 65 ($20,000 from 55), less the Social Security subtracted | $0 | $0 |
| ConnecticutSocial Security exempt below $75,000 of AGI ($100,000 joint); pension and IRA income exempt below the same limits, phased out by $100,000 ($150,000 joint) | $0 | $0 |
| FloridaNo income tax | $0 | $0 |
| GeorgiaSocial Security exempt; retirement income exclusion up to $65,000 per person at 65 ($35,000 from 62), including interest | $0 | $0 |
| IllinoisSocial Security, pensions and IRA income exempt | $0 | $0 |
| IowaSocial Security exempt; pension and IRA income exempt from 55 | $0 | $0 |
| MaineSocial Security exempt; pension and IRA deduction up to $48,216 (latest published, 2025) per person, less Social Security received | $0 | $0 |
| MarylandSocial Security exempt; pension exclusion at 65 up to $40,600 (reported for 2026), less Social Security received; IRAs do not qualify | $0 | $0 |
| MichiganSocial Security exempt; public and private retirement income exempt up to $67,610 ($135,220 joint) | $0 | $0 |
| MississippiSocial Security and pension income exempt; IRA income exempt from 59 1/2 | $0 | $0 |
| NevadaNo income tax | $0 | $0 |
| New HampshireNo income tax | $0 | $0 |
| New JerseySocial Security exempt; pension and IRA exclusion from 62 up to $75,000 ($100,000 joint), reduced above $100,000 of income and gone above $150,000 | $0 | $0 |
| North DakotaSocial Security exempt; pensions and IRA income taxed | $0 | $0 |
| PennsylvaniaSocial Security and eligible pensions exempt; IRA income exempt from 59 1/2 | $0 | $0 |
| Rhode IslandSocial Security and up to $50,000 of pension income exempt at full retirement age when AGI is under $107,000 (latest published, 2025), or $133,750 (latest published, 2025) on a joint return; IRA income taxed | $0 | $0 |
| South DakotaNo income tax | $0 | $0 |
| TennesseeNo income tax | $0 | $0 |
| TexasNo income tax | $0 | $0 |
| WashingtonNo income tax | $0 | $0 |
| WisconsinSocial Security exempt; retirement income subtraction up to $24,000 per person at 67 | $0 | $0 |
| WyomingNo income tax | $0 | $0 |
| KentuckySocial Security exempt; pension and IRA income exempt up to $31,110 (latest published, 2025) per person | $0 | $464 |
| South CarolinaSocial Security exempt; retirement deduction up to $10,000 at 65 ($3,000 under 65), topped up to $15,000 against any income at 65 | $7 | $0 |
| HawaiiSocial Security and employer-funded pensions exempt; IRA and 401(k) income taxed | $12 | $24 |
| CaliforniaSocial Security exempt; pensions and IRA income taxed; senior exemption credit at 65 | $51 | $0 |
| IdahoSocial Security exempt; private pensions and IRA income taxed | $55 | $0 |
| New YorkSocial Security and government pensions exempt; private pension and IRA exclusion up to $20,000 per person from 59 1/2 | $78 | $544 |
| OhioSocial Security exempt; pensions and IRA income taxed; retirement income credit up to $200 | $105 | $622 |
| DelawareSocial Security exempt; pension and retirement income exclusion up to $12,500 per person from 60 ($2,000 under 60) | $125 | $617 |
| LouisianaSocial Security and government pensions exempt; other pension and IRA income exempt up to $12,324 per person at 65 | $144 | $358 |
| VirginiaSocial Security exempt; age deduction up to $12,000 at 65, reduced above $50,000 of income ($75,000 married) | $246 | $122 |
| New MexicoSocial Security exempt up to $100,000 of AGI ($150,000 joint); pensions and IRA income taxed | $286 | $328 |
| ArizonaSocial Security and military retirement exempt; up to $2,500 of government pensions; $2,100 (latest published, 2025) exemption at 65 | $295 | $340 |
| MissouriSocial Security exempt from 62; public pensions exempt up to $48,967; private pension and IRA exemption up to $6,000, reduced above $25,000 of income ($32,000 joint) | $308 | $479 |
| OklahomaSocial Security exempt; pension and IRA exclusion up to $10,000 per person | $355 | $709 |
| ArkansasSocial Security exempt; pension and IRA income exempt up to $6,000 (latest published, 2025) per person | $415 | $991 |
| NebraskaSocial Security and military retirement exempt; pensions and IRA income taxed | $453 | $579 |
| VermontSocial Security taxed above $55,000 of AGI ($70,000 joint); pensions and IRA income taxed | $519 | $1,466 |
| MontanaSocial Security taxed as on the federal return; $5,660 (latest published, 2025) subtraction per person at 65 | $540 | $906 |
| UtahSocial Security taxed, with a credit that phases out above $54,000 of income ($90,000 joint); pensions and IRA income taxed | $546 | $637 |
| District of ColumbiaSocial Security exempt; pensions and IRA income taxed | $634 | $868 |
| MinnesotaSocial Security taxed above $86,410 of AGI ($110,780 joint); pensions and IRA income taxed | $679 | $867 |
| North CarolinaSocial Security exempt; private pensions and IRA income taxed | $688 | $978 |
| West VirginiaSocial Security exempt from 2026; $8,000 exclusion at 65, less other subtractions | $727 | $1,360 |
| KansasSocial Security and federal, military and listed Kansas public pensions exempt; private pensions and IRA income taxed | $852 | $1,146 |
| MassachusettsSocial Security and government pensions exempt; private pensions and IRA income taxed; $700 exemption at 65 | $1,245 | $1,990 |
| IndianaSocial Security and military retirement exempt; pensions and IRA income taxed, plus county tax; $1,000 exemption at 65 | $1,392 | $2,286 |
| OregonSocial Security exempt; pensions and IRA income taxed | $1,525 | $2,249 |
Best states for retirement taxes
Measured by state income tax on these two retirees, 24 states charge both nothing: the nine with no income tax and Alabama, Colorado, Connecticut, Georgia, Illinois, Iowa, Maine, Maryland, Michigan, Mississippi, New Jersey, North Dakota, Pennsylvania, Rhode Island and Wisconsin. California, Idaho, Kentucky and South Carolina charge one of the two nothing.
The highest are Oregon ($1,525), Indiana ($1,392) and Massachusetts ($1,245) for the single retiree, and Indiana ($2,286), Oregon ($2,249) and Massachusetts ($1,990) for the couple.
Property, sales and estate taxes are not included.
Retirement income tax questions
Which states don't tax retirement income?
Nine states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Illinois, Iowa, Mississippi and Pennsylvania exempt pension and IRA income with no dollar limit, subject to age and plan conditions. In all, 25 states charge the single retiree in the table nothing.
Which states tax Social Security in 2026?
Eight states tax some Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. West Virginia stopped in 2026. Every other state exempts benefits or has no income tax.
Which state taxes retirement income the most?
For the single retiree in the table, Oregon ($1,525), Indiana ($1,392) and Massachusetts ($1,245) charge the most. For the married couple, Indiana ($2,286), Oregon ($2,249) and Massachusetts ($1,990) do.
How much federal tax does a retiree pay on Social Security?
Up to 85% of benefits can be federally taxable. For the single retiree, $11,300 of the $24,000 in benefits is taxable. After a standard deduction of $18,150 and the $6,000 senior deduction, federal income tax is $1,810. The married couple has $28,100 of taxable benefits and pays $3,176.
What these figures leave out
Alabama. Private pensions are treated as defined-benefit plans under IRC 414(j), which Alabama exempts; other defined-contribution and annuity payouts would share the $6,000 exclusion with IRA income.
Arizona. Other states' public pensions do not qualify for the $2,500 subtraction. No Arizona deduction tied to the federal senior deduction is applied; none appears in the 2025 Form 140 instructions.
Arkansas. Recovery of after-tax contributions and disability retirement are not modeled.
California. California does not follow the federal senior deduction. The separate $20,000 Survivor Benefit Plan exclusion and the senior head of household credit are not modeled.
Colorado. Survivor benefits under 55, the PERA/DPSRS 1984-1986 contribution subtraction and railroad retirement are not modeled.
Connecticut. The Connecticut Teachers' Retirement System 50% subtraction (an alternative to the general pension subtraction) and railroad retirement are not modeled.
Delaware. Interest counts as eligible retirement income from 60; other income entered is treated as interest split equally on a joint return. Early and disability distributions before retirement age are not modeled.
District of Columbia. D.C. and federal survivor benefits at 62+ are not modeled.
Georgia. Earned income up to $5,000 in the exclusion and the second $17,500 military exclusion (it needs Georgia earned income) are not modeled. Other income entered is treated as interest, split equally on a joint return.
Hawaii. A private pension is treated as an employer-funded plan with no employee contributions, which Hawaii exempts; the share bought with employee contributions is taxable (Schedule J). IRA and 401(k) withdrawals, including rollovers, are treated as taxable.
Idaho. Federal pensions are treated as FERS, which does not qualify; CSRS and Foreign Service annuities and Idaho firefighter and police funds do. Military retirees under 62 qualify if disabled or working, which is not modeled.
Illinois. Non-government deferred compensation, Form 4972 averaging and third-party sick pay, which are not subtracted, are not modeled.
Indiana. The Unified Tax Credit for the Elderly (65+, AGI under $10,000) and the disability retirement deduction are not modeled.
Iowa. Nonqualified annuities and deferred compensation, which do not qualify, are not separated out.
Kansas. State pensions are treated as KPERS or another plan on the Schedule S list; unlisted local plans are taxable. TSP distributions (exempt) are not separated from IRA income.
Kentucky. Schedule P, which can exclude more for federal, military and Kentucky government service before 1998, is not modeled.
Louisiana. The $6,000 disability income exemption is not modeled.
Maine. Railroad retirement, which also reduces the cap, is not modeled.
Maryland. The IRA input is treated as a traditional IRA, which does not qualify; 401(k), 403(b) and 457(b) payouts would. The public safety ($15,000) and ranger subtractions are not modeled.
Massachusetts. State pensions are treated as Massachusetts contributory plans. IRA basis taxed earlier by Massachusetts (no state IRA deduction) and the Senior Circuit Breaker credit are not modeled.
Michigan. The optional age-67 standard deduction ($20,000/$40,000) and older tier choices, and the full public safety pension deduction, are not modeled.
Minnesota. The public pension subtraction (service without Social Security coverage) is not modeled; it depends on service history.
Mississippi. Early and excess distributions (federal Form 5329) and deferred compensation before retirement age, which are taxable, are not modeled except by the age-60 IRA test.
Missouri. Social Security disability before 62 is not modeled.
Montana. The 50% military retirement subtraction (needs Montana earned income) and Tier 1 railroad retirement are not modeled.
Nebraska. Railroad retirement is not modeled.
New Jersey. The $3,000/$6,000 special exclusion for those never eligible for Social Security is not modeled.
New Mexico. Railroad retirement, tribal pensions and the 65+ medical care deduction are not modeled.
New York. State pensions are treated as New York State or local plans. Amounts received before reaching 59 1/2 in the year are not separated.
North Carolina. Government pensions are treated as not vested under the Bailey settlement (5 years of service by August 12, 1989); vested NC, local and federal retirees deduct them in full. Military retirees are assumed to have 20 years of service or a medical retirement.
North Dakota. The licensed peace officer retirement exclusion and Tier 1 railroad retirement are not modeled.
Ohio. Lump-sum retirement credits and the military share of a federal civil service pension are not modeled.
Oklahoma. The federal CSRS annuity paid in lieu of Social Security (fully excluded) is not modeled.
Oregon. The federal pension subtraction for service before October 1, 1991 is not modeled; it depends on service history.
Pennsylvania. Pensions are treated as paid by an eligible Pennsylvania plan after retirement from that employer at its retirement age; otherwise they are taxable above contributions. IRA withdrawals before 59 1/2 are treated as taxable in full (no contribution basis).
Rhode Island. The IRA input is treated as a traditional IRA, which does not qualify; 401(k) and 403(b) payouts would.
South Carolina. Surviving spouse retirement deductions and the disability retirement subtraction are not modeled. South Carolina starts from federal AGI from 2026 (Act 110), so the federal 65+ and senior deductions do not flow through.
Utah. The retirement credit for those born before 1953 is not modeled; it cannot be combined with the Social Security or military credits.
Vermont. The $10,000 exemption for CSRS and other government pensions without Social Security coverage (an alternative to the Social Security exemption) and the elderly credit (24% of the federal Schedule R credit) are not modeled.
Virginia. The disability income subtraction, which cannot be combined with the age deduction, is not modeled.
West Virginia. State pensions are treated as WV TRS or PERS (the $2,000 exclusion); police, firefighter and federal law enforcement plans, which are fully excluded, are not modeled. Other income entered is split equally on a joint return.
Wisconsin. Pre-1964 state, local and federal pensions (fully exempt) are not modeled. Claiming the $24,000 subtraction forfeits Wisconsin credits such as the school property tax credit, which the calculator does not model.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.
Sources
- IRS Publication 915, Social Security benefits
- IRS Revenue Procedure 2025-32
- IRS: deductions for seniors under the One Big Beautiful Bill Act
- Alabama 2025 Form 40 booklet
- Alaska Administrative Manual 360
- Arizona 2025 Form 140 instructions
- Arkansas 2025 AR1000F instructions
- California 2025 Schedule CA (540) instructions
- Colorado Department of Revenue: Social Security, pensions and annuities
- Colorado 2025 Income Tax Filing Guide (Book 104)
- Connecticut 2025 CT-1040 instructions
- Connecticut General Statutes chapter 229, section 12-701
- Delaware 2025 PIT-RES instructions
- D.C. Code 47-1803.02
- Florida Department of Revenue brochure GT-800025
- Georgia 2025 IT-511 booklet
- Hawaii 2025 Form N-11 instructions
- Idaho Code 63-3022A
- Illinois Publication 120, Retirement Income
- Indiana Information Bulletin 26
- Iowa 2025 IA 1040 Schedule 1 instructions
- Kansas 2025 income tax booklet
- Kentucky 2025 Form 740 instructions
- Louisiana 2025 IT-540 instructions
- LAC 61:I.1311: 2026 retirement income exemption of $12,324
- 36 M.R.S. 5122
- Maryland Pension Exclusion Computation Worksheet 13A
- Massachusetts tax information for seniors and retirees
- Michigan Revenue Administrative Bulletin 2026-1
- Minnesota Social Security benefit subtraction
- Minnesota tax year 2026 inflation-adjusted amounts
- Mississippi individual income tax FAQ
- Missouri Department of Revenue pension FAQ
- MCA 15-30-2120
- Montana 2025 tax rates and deductions
- Nebraska 2025 individual income tax booklet
- Nevada Department of Taxation: income tax in Nevada
- New Hampshire RSA chapter 77 (repealed)
- New Jersey 2025 NJ-1040 instructions
- New Mexico Social Security income tax exemption
- New Mexico 2025 PIT-ADJ instructions
- New York information for retired persons
- North Carolina 2025 D-401 instructions
- North Dakota 2025 individual income tax booklet
- Ohio 2025 IT 1040 instructions
- Oklahoma 2025 Form 511 packet
- Oregon 2025 Publication OR-17
- Pennsylvania PIT Guide: gross compensation
- Rhode Island Retirement Income Tax Guide (Pub 2026-01)
- Rhode Island ADV 2025-22 inflation adjustments
- South Carolina Code title 12, chapter 6
- South Dakota Department of Revenue: individual taxes
- Tennessee Department of Revenue: Hall income tax
- Texas HJR 38 (2019)
- Utah Social Security benefits credit
- Utah Code 59-10-1042
- Vermont Social Security exemption
- 32 V.S.A. 5830e
- Virginia 2025 Form 760 instructions
- Washington Department of Revenue: income tax
- W. Va. Code 11-21-12
- Wisconsin 2025 Schedule SB instructions
- Wyoming LSO tax structure summary (June 2025)