Retirement Taxes by State

When preparing for retirement, Americans often find themselves debating a change in location. Whether it is based on family, weather, or something else, many people move across state lines for their retirement. However, one consideration people fail to consider when debating their move is what retirement tax is in place in the state.

There are various forms of taxes that are in play when approaching retirement, including: taxes (if any) on Social Security benefits, capital gains taxes, property taxes, and estate taxes. These differences are key when retirees have income from Social Security, IRAs, 401(k)s, pensions, dividends, and wages. 

Some of the best states for retirement taxes include Florida, synonymous with retirees, Nevada, Alaska, Georgia, and more.

Learn for yourself about retirement taxes by state by scrolling the charts.

Retirement Tax Friendliness by State

Alabama - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

No

INCOME TAX PER STATEhelp

2%

#18 in the US

SOCIAL SECURITY TAX STATUShelp

No

Alaska - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Arizona - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

2.59%

#19 in the US

SOCIAL SECURITY TAX STATUShelp

No

Arkansas - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

2%

#20 in the US

SOCIAL SECURITY TAX STATUShelp

No

California - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1%

#8 in the US

SOCIAL SECURITY TAX STATUShelp

No

Colorado - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4.55%

#32 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Connecticut - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3%

#24 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Delaware - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

0%

#1 in the US

SOCIAL SECURITY TAX STATUShelp

No

Florida - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Georgia - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1%

#9 in the US

SOCIAL SECURITY TAX STATUShelp

No

Hawaii - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

No

INCOME TAX PER STATEhelp

1.4%

#10 in the US

SOCIAL SECURITY TAX STATUShelp

No

Idaho - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.13%

#11 in the US

SOCIAL SECURITY TAX STATUShelp

No

Illinois - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

No

INCOME TAX PER STATEhelp

4.95%

#34 in the US

SOCIAL SECURITY TAX STATUShelp

No

Indiana - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3.23%

#25 in the US

SOCIAL SECURITY TAX STATUShelp

No

Iowa - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

0.33%

#2 in the US

SOCIAL SECURITY TAX STATUShelp

No

Kansas - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3.1%

#26 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Kentucky - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

5%

#40 in the US

SOCIAL SECURITY TAX STATUShelp

No

Louisiana - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.85%

#12 in the US

SOCIAL SECURITY TAX STATUShelp

No

Maine - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

5.8%

#41 in the US

SOCIAL SECURITY TAX STATUShelp

No

Maryland - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

2%

#21 in the US

SOCIAL SECURITY TAX STATUShelp

No

Massachusetts - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

5%

#42 in the US

SOCIAL SECURITY TAX STATUShelp

No

Michigan - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4.25%

#35 in the US

SOCIAL SECURITY TAX STATUShelp

No

Minnesota - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

5.35%

#43 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Mississippi - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

INCOME TAX PER STATEhelp

0%

#3 in the US

SOCIAL SECURITY TAX STATUShelp

No

Missouri - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.5%

#13 in the US

SOCIAL SECURITY TAX STATUShelp

No

Montana - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1%

#14 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Nebraska - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

2.46%

#22 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Nevada - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

New Hampshire - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

New Jersey - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.4%

#15 in the US

SOCIAL SECURITY TAX STATUShelp

No

New Mexico - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.7%

#16 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

New York - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4%

#36 in the US

SOCIAL SECURITY TAX STATUShelp

No

North Carolina - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4.99%

#37 in the US

SOCIAL SECURITY TAX STATUShelp

No

North Dakota - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

1.1%

#17 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Ohio - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Mixed

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

0%

#4 in the US

SOCIAL SECURITY TAX STATUShelp

No

Oklahoma - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

0.25%

#5 in the US

SOCIAL SECURITY TAX STATUShelp

No

Oregon - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4.75%

#38 in the US

SOCIAL SECURITY TAX STATUShelp

No

Pennsylvania - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

INCOME TAX PER STATEhelp

3.07%

#27 in the US

SOCIAL SECURITY TAX STATUShelp

No

Rhode Island - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3.75%

#28 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

South Carolina - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

0%

#6 in the US

SOCIAL SECURITY TAX STATUShelp

No

South Dakota - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Tennessee - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Texas - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

Utah - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

4.95%

#39 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Vermont - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3.35%

#29 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Virginia - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

2%

#23 in the US

SOCIAL SECURITY TAX STATUShelp

No

Washington - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No

West Virginia - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Not Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3%

#30 in the US

SOCIAL SECURITY TAX STATUShelp

Yes

Wisconsin - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Least Tax-Friendly

PENSIONS TAX STATUShelp

Yes

INCOME TAX PER STATEhelp

3.54%

#31 in the US

SOCIAL SECURITY TAX STATUShelp

No

Wyoming - Retirement Tax Friendliness

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RETIREMENT TAX FRIENDLINESShelp

Most Tax-Friendly

PENSIONS TAX STATUShelp

No

SOCIAL SECURITY TAX STATUShelp

No