RETIREMENT INCOME TAX · TAX YEAR 2026
States that don't tax retirement income in 2026
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, and twelve more subtract at least half of a single retiree's $30,000 in pension and IRA income.
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.
Pension and IRA income exempt with no dollar limit
These states exempt all pension and IRA income that meets their conditions, at any amount. All four also exempt Social Security. State tax is for a single filer aged 67 with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals.
| State | Conditions | State tax |
|---|---|---|
| Illinois | Any age. Covers qualified plans, IRAs and government plans. | $0 |
| Iowa | From age 55 by December 31. Military retirement at any age. | $0 |
| Mississippi | Pensions once the plan's retirement age or service is met; IRA withdrawals from 59 1/2. | $0 |
| Pennsylvania | Pensions from an eligible plan after retiring from that employer; IRA withdrawals from 59 1/2. | $0 |
Large retirement exclusions
These states subtract at least $15,000 of the single retiree's $30,000 in pension and IRA income, but cap it, limit it by income or tax some kinds of it. Excluded leaves out age deductions that apply to any income.
| State and rule | Excluded | State tax |
|---|---|---|
| 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) | $30,000 | $0 |
| GeorgiaSocial Security exempt; retirement income exclusion up to $65,000 per person at 65 ($35,000 from 62), including interest | $30,000 | $0 |
| KentuckySocial Security exempt; pension and IRA income exempt up to $31,110 (latest published, 2025) per person | $30,000 | $0 |
| MichiganSocial Security exempt; public and private retirement income exempt up to $67,610 ($135,220 joint) | $30,000 | $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 | $30,000 | $0 |
| AlabamaSocial Security and defined-benefit pensions exempt; first $6,000 of IRA and 401(k) income exempt from 65 | $26,000 | $0 |
| MaineSocial Security exempt; pension and IRA deduction up to $48,216 (latest published, 2025) per person, less Social Security received | $24,216 | $0 |
| WisconsinSocial Security exempt; retirement income subtraction up to $24,000 per person at 67 | $24,000 | $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 | $20,000 | $0 |
| HawaiiSocial Security and employer-funded pensions exempt; IRA and 401(k) income taxed | $20,000 | $12 |
| New YorkSocial Security and government pensions exempt; private pension and IRA exclusion up to $20,000 per person from 59 1/2 | $20,000 | $78 |
| MarylandSocial Security exempt; pension exclusion at 65 up to $40,600 (reported for 2026), less Social Security received; IRAs do not qualify | $16,600 | $0 |
States that tax most pension and IRA income
These states subtract less than $15,000 of the same $30,000.
| State and rule | Excluded | State tax |
|---|---|---|
| ColoradoSocial Security exempt at 65; pension and IRA subtraction up to $24,000 at 65 ($20,000 from 55), less the Social Security subtracted | $12,700 | $0 |
| DelawareSocial Security exempt; pension and retirement income exclusion up to $12,500 per person from 60 ($2,000 under 60) | $12,500 | $125 |
| LouisianaSocial Security and government pensions exempt; other pension and IRA income exempt up to $12,324 per person at 65 | $12,324 | $144 |
| 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 | $10,000 | $7 |
| OklahomaSocial Security exempt; pension and IRA exclusion up to $10,000 per person | $10,000 | $355 |
| ArkansasSocial Security exempt; pension and IRA income exempt up to $6,000 (latest published, 2025) per person | $6,000 (latest published, 2025) | $415 |
| 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) | $1,000 | $308 |
| North DakotaSocial Security exempt; pensions and IRA income taxed | $0 | $0 |
| CaliforniaSocial Security exempt; pensions and IRA income taxed; senior exemption credit at 65 | $0 | $51 |
| IdahoSocial Security exempt; private pensions and IRA income taxed | $0 | $55 |
| OhioSocial Security exempt; pensions and IRA income taxed; retirement income credit up to $200 | $0 | $105 |
| VirginiaSocial Security exempt; age deduction up to $12,000 at 65, reduced above $50,000 of income ($75,000 married) | $0 | $246 |
| New MexicoSocial Security exempt up to $100,000 of AGI ($150,000 joint); pensions and IRA income taxed | $0 | $286 |
| ArizonaSocial Security and military retirement exempt; up to $2,500 of government pensions; $2,100 (latest published, 2025) exemption at 65 | $0 | $295 |
| NebraskaSocial Security and military retirement exempt; pensions and IRA income taxed | $0 | $453 |
| VermontSocial Security taxed above $55,000 of AGI ($70,000 joint); pensions and IRA income taxed | $0 | $519 |
| MontanaSocial Security taxed as on the federal return; $5,660 (latest published, 2025) subtraction per person at 65 | $0 | $540 |
| UtahSocial Security taxed, with a credit that phases out above $54,000 of income ($90,000 joint); pensions and IRA income taxed | $0 | $546 |
| District of ColumbiaSocial Security exempt; pensions and IRA income taxed | $0 | $634 |
| MinnesotaSocial Security taxed above $86,410 of AGI ($110,780 joint); pensions and IRA income taxed | $0 | $679 |
| North CarolinaSocial Security exempt; private pensions and IRA income taxed | $0 | $688 |
| West VirginiaSocial Security exempt from 2026; $8,000 exclusion at 65, less other subtractions | $0 | $727 |
| KansasSocial Security and federal, military and listed Kansas public pensions exempt; private pensions and IRA income taxed | $0 | $852 |
| MassachusettsSocial Security and government pensions exempt; private pensions and IRA income taxed; $700 exemption at 65 | $0 | $1,245 |
| IndianaSocial Security and military retirement exempt; pensions and IRA income taxed, plus county tax; $1,000 exemption at 65 | $0 | $1,392 |
| OregonSocial Security exempt; pensions and IRA income taxed | $0 | $1,525 |
Indiana figures include Marion County tax. See every state ranked.
Retirement income questions
Which states don't tax retirement income?
The nine states with no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Of the states with an income tax, Illinois, Iowa, Mississippi and Pennsylvania exempt pension and IRA income with no dollar limit, subject to age and plan conditions.
Which states tax pensions?
Take a single 67-year-old whose only income is a $40,000 private pension. 28 states and DC tax at least part of it: Arizona, Arkansas, California, Colorado, Delaware, District of Columbia, Idaho, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, South Carolina, Utah, Vermont, Virginia, West Virginia and Wisconsin. Alabama, Connecticut, Georgia, Hawaii, Illinois, Iowa, Maine, Maryland, Michigan, Mississippi, New Jersey, Pennsylvania and Rhode Island exclude all of it, as do the nine states with no income tax.
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.
Connecticut. The Connecticut Teachers' Retirement System 50% subtraction (an alternative to the general pension subtraction) and railroad retirement 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.
Illinois. Non-government deferred compensation, Form 4972 averaging and third-party sick pay, which are not subtracted, are not modeled.
Iowa. Nonqualified annuities and deferred compensation, which do not qualify, are not separated out.
Kentucky. Schedule P, which can exclude more for federal, military and Kentucky government service before 1998, 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.
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.
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.
New Jersey. The $3,000/$6,000 special exclusion for those never eligible for Social Security is 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.
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.
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
- Connecticut 2025 CT-1040 instructions
- Connecticut General Statutes chapter 229, section 12-701
- Florida Department of Revenue brochure GT-800025
- Georgia 2025 IT-511 booklet
- Hawaii 2025 Form N-11 instructions
- Illinois Publication 120, Retirement Income
- Iowa 2025 IA 1040 Schedule 1 instructions
- Kentucky 2025 Form 740 instructions
- 36 M.R.S. 5122
- Maryland Pension Exclusion Computation Worksheet 13A
- Michigan Revenue Administrative Bulletin 2026-1
- Mississippi individual income tax FAQ
- Nevada Department of Taxation: income tax in Nevada
- New Hampshire RSA chapter 77 (repealed)
- New Jersey 2025 NJ-1040 instructions
- New York information for retired persons
- Pennsylvania PIT Guide: gross compensation
- Rhode Island Retirement Income Tax Guide (Pub 2026-01)
- Rhode Island ADV 2025-22 inflation adjustments
- South Dakota Department of Revenue: individual taxes
- Tennessee Department of Revenue: Hall income tax
- Texas HJR 38 (2019)
- Washington Department of Revenue: income tax
- Wisconsin 2025 Schedule SB instructions
- Wyoming LSO tax structure summary (June 2025)