Introduction
Retirement income in the United States can differ significantly from state to state. For example, Social Security is a primary source of retirement income for many people, and it pays out different levels of benefits based on where you live. According to the Social Security Administration, Wisconsin has the highest average monthly benefit while Kentucky has the lowest. Many states also offer additional tax breaks for retired seniors. Some states are even exempting all retirement income from taxation; other states offer substantial tax credits to retirees living on fixed incomes. Furthermore, certain states have made investments into special pension funds that can provide supplemental income for retirees who worked within those state boundaries throughout their careers. Finally, many cities and counties also have their own public or private retirement plans which can provide an additional source of income for local retirees.
| # | State | Retirement Income Per Household | Retirement Tax Friendliness | Tax on Pensions | Military Retirement Tax Status |
|---|---|---|---|---|---|
| 1 | District of Columbia | $43,080 | |||
| 2 | Alaska | $36,023 | Most Tax-Friendly | No | No Tax |
| 3 | Maryland | $35,732 | Least Tax-Friendly | Yes | Partial Exemptions |
| 4 | Virginia | $35,306 | Tax-Friendly | Yes | Fully Tax |
| 5 | California | $34,737 | Mixed | Yes | Fully Tax |
| 6 | Colorado | $32,379 | Mixed | Yes | Partial Exemptions |
| 7 | Hawaii | $32,294 | Tax-Friendly | No | No Tax |
| 8 | Connecticut | $32,052 | Least Tax-Friendly | Yes | No Tax |
| 9 | Delaware | $31,283 | Tax-Friendly | Yes | Partial Exemptions |
| 10 | Illinois | $31,223 | Mixed | No | No Tax |
| 11 | Massachusetts | $31,198 | Not Tax-Friendly | Yes | No Tax |
| 12 | Nevada | $31,171 | Most Tax-Friendly | No | No Tax |
| 13 | New Jersey | $30,660 | Mixed | Yes | No Tax |
| 14 | New York | $30,326 | Not Tax-Friendly | Yes | No Tax |
| 15 | Florida | $30,158 | Most Tax-Friendly | No | No Tax |
| 16 | New Mexico | $29,707 | Least Tax-Friendly | Yes | Partial Exemptions |
| 17 | Washington | $29,351 | Tax-Friendly | No | No Tax |
| 18 | Arizona | $28,725 | Mixed | Yes | No Tax |
| 19 | Utah | $28,632 | Least Tax-Friendly | Yes | No Tax |
| 20 | Oregon | $28,565 | Not Tax-Friendly | Yes | Partial Exemptions |
| 21 | Georgia | $27,961 | Most Tax-Friendly | Yes | Partial Exemptions |
| 22 | Texas | $27,471 | Tax-Friendly | No | No Tax |
| 23 | Rhode Island | $27,118 | Not Tax-Friendly | Yes | Partial Exemptions |
| 24 | Louisiana | $26,512 | Tax-Friendly | Yes | No Tax |
| 25 | Wyoming | $26,465 | Most Tax-Friendly | No | No Tax |
| 26 | New Hampshire | $26,395 | Most Tax-Friendly | No | No Tax |
| 27 | Minnesota | $26,385 | Least Tax-Friendly | Yes | No Tax |
| 28 | Ohio | $26,316 | Mixed | Yes | No Tax |
| 29 | South Carolina | $26,227 | Tax-Friendly | Yes | Partial Exemptions |
| 30 | Maine | $25,545 | Mixed | Yes | No Tax |
| 31 | Montana | $25,463 | Not Tax-Friendly | Yes | Partial Exemptions |
| 32 | Wisconsin | $25,378 | Least Tax-Friendly | Yes | No Tax |
| 33 | North Carolina | $25,324 | Not Tax-Friendly | Yes | No Tax |
| 34 | Alabama | $24,896 | Tax-Friendly | No | No Tax |
| 35 | Vermont | $24,870 | Least Tax-Friendly | Yes | Fully Tax |
| 36 | Idaho | $24,752 | Mixed | Yes | Partial Exemptions |
| 37 | Kentucky | $24,419 | Most Tax-Friendly | Yes | Partial Exemptions |
| 38 | Pennsylvania | $24,392 | Most Tax-Friendly | No | No Tax |
| 39 | Michigan | $24,389 | Not Tax-Friendly | Yes | No Tax |
| 40 | Missouri | $24,125 | Mixed | Yes | No Tax |
| 41 | South Dakota | $24,020 | Most Tax-Friendly | No | No Tax |
| 42 | Oklahoma | $23,963 | Not Tax-Friendly | Yes | Partial Exemptions |
| 43 | Nebraska | $23,821 | Least Tax-Friendly | Yes | No Tax |
| 44 | Tennessee | $23,715 | Tax-Friendly | No | No Tax |
| 45 | Mississippi | $23,347 | Most Tax-Friendly | No | No Tax |
| 46 | North Dakota | $23,347 | Tax-Friendly | Yes | No Tax |
| 47 | Kansas | $23,294 | Least Tax-Friendly | Yes | No Tax |
| 48 | Iowa | $22,308 | Not Tax-Friendly | Yes | No Tax |
| 49 | Arkansas | $21,967 | Not Tax-Friendly | Yes | No Tax |
| 50 | West Virginia | $21,118 | Not Tax-Friendly | Yes | No Tax |
| 51 | Indiana | $20,542 | Least Tax-Friendly | Yes | No Tax |
Retirement Income Per Household by State
Alabama
Retirement Income Per Household
$24,896
Ranked in the US
#34
Tax-Friendly
Alaska
Retirement Income Per Household
$36,023
Ranked in the US
#2
Most Tax-Friendly
Arizona
Retirement Income Per Household
$28,725
Ranked in the US
#18
Arkansas
Retirement Income Per Household
$21,967
Ranked in the US
#49
Not Tax-Friendly
California
Retirement Income Per Household
$34,737
Ranked in the US
#5
Fully Tax
Colorado
Retirement Income Per Household
$32,379
Ranked in the US
#6
Partial Exemptions
Connecticut
Retirement Income Per Household
$32,052
Ranked in the US
#8
Least Tax-Friendly
Delaware
Retirement Income Per Household
$31,283
Ranked in the US
#9
Tax-Friendly
Partial Exemptions
District of Columbia
Retirement Income Per Household
$43,080
Ranked in the US
#1
Florida
Retirement Income Per Household
$30,158
Ranked in the US
#15
Most Tax-Friendly
Georgia
Retirement Income Per Household
$27,961
Ranked in the US
#21
Most Tax-Friendly
Partial Exemptions
Hawaii
Retirement Income Per Household
$32,294
Ranked in the US
#7
Tax-Friendly
Idaho
Retirement Income Per Household
$24,752
Ranked in the US
#36
Partial Exemptions
Illinois
Retirement Income Per Household
$31,223
Ranked in the US
#10
Indiana
Retirement Income Per Household
$20,542
Ranked in the US
#51
Least Tax-Friendly
Iowa
Retirement Income Per Household
$22,308
Ranked in the US
#48
Not Tax-Friendly
Kansas
Retirement Income Per Household
$23,294
Ranked in the US
#47
Least Tax-Friendly
Kentucky
Retirement Income Per Household
$24,419
Ranked in the US
#37
Most Tax-Friendly
Partial Exemptions
Louisiana
Retirement Income Per Household
$26,512
Ranked in the US
#24
Tax-Friendly
Maine
Retirement Income Per Household
$25,545
Ranked in the US
#30
Maryland
Retirement Income Per Household
$35,732
Ranked in the US
#3
Least Tax-Friendly
Partial Exemptions
Massachusetts
Retirement Income Per Household
$31,198
Ranked in the US
#11
Not Tax-Friendly
Michigan
Retirement Income Per Household
$24,389
Ranked in the US
#39
Not Tax-Friendly
Minnesota
Retirement Income Per Household
$26,385
Ranked in the US
#27
Least Tax-Friendly
Mississippi
Retirement Income Per Household
$23,347
Ranked in the US
#45
Most Tax-Friendly
Missouri
Retirement Income Per Household
$24,125
Ranked in the US
#40
Montana
Retirement Income Per Household
$25,463
Ranked in the US
#31
Not Tax-Friendly
Partial Exemptions
Nebraska
Retirement Income Per Household
$23,821
Ranked in the US
#43
Least Tax-Friendly
Nevada
Retirement Income Per Household
$31,171
Ranked in the US
#12
Most Tax-Friendly
New Hampshire
Retirement Income Per Household
$26,395
Ranked in the US
#26
Most Tax-Friendly
New Jersey
Retirement Income Per Household
$30,660
Ranked in the US
#13
New Mexico
Retirement Income Per Household
$29,707
Ranked in the US
#16
Least Tax-Friendly
Partial Exemptions
New York
Retirement Income Per Household
$30,326
Ranked in the US
#14
Not Tax-Friendly
North Carolina
Retirement Income Per Household
$25,324
Ranked in the US
#33
Not Tax-Friendly
North Dakota
Retirement Income Per Household
$23,347
Ranked in the US
#46
Tax-Friendly
Ohio
Retirement Income Per Household
$26,316
Ranked in the US
#28
Oklahoma
Retirement Income Per Household
$23,963
Ranked in the US
#42
Not Tax-Friendly
Partial Exemptions
Oregon
Retirement Income Per Household
$28,565
Ranked in the US
#20
Not Tax-Friendly
Partial Exemptions
Pennsylvania
Retirement Income Per Household
$24,392
Ranked in the US
#38
Most Tax-Friendly
Rhode Island
Retirement Income Per Household
$27,118
Ranked in the US
#23
Not Tax-Friendly
Partial Exemptions
South Carolina
Retirement Income Per Household
$26,227
Ranked in the US
#29
Tax-Friendly
Partial Exemptions
South Dakota
Retirement Income Per Household
$24,020
Ranked in the US
#41
Most Tax-Friendly
Tennessee
Retirement Income Per Household
$23,715
Ranked in the US
#44
Tax-Friendly
Texas
Retirement Income Per Household
$27,471
Ranked in the US
#22
Tax-Friendly
Utah
Retirement Income Per Household
$28,632
Ranked in the US
#19
Least Tax-Friendly
Vermont
Retirement Income Per Household
$24,870
Ranked in the US
#35
Least Tax-Friendly
Fully Tax
Virginia
Retirement Income Per Household
$35,306
Ranked in the US
#4
Tax-Friendly
Fully Tax
Washington
Retirement Income Per Household
$29,351
Ranked in the US
#17
Tax-Friendly
West Virginia
Retirement Income Per Household
$21,118
Ranked in the US
#50
Not Tax-Friendly
Wisconsin
Retirement Income Per Household
$25,378
Ranked in the US
#32
Least Tax-Friendly
Wyoming
Retirement Income Per Household
$26,465
Ranked in the US
#25
Most Tax-Friendly
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