Retirement Taxes by State

Map

Table

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Introduction

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.

StateRetirement Tax FriendlinessTax on PensionsIncome Tax RateTax on Social Security
Arkansas Not Tax-FriendlyYes2%No
Iowa Not Tax-FriendlyYes0.33%No
Massachusetts Not Tax-FriendlyYes5%No
Michigan Not Tax-FriendlyYes4.25%No
Montana Not Tax-FriendlyYes1%Yes
New York Not Tax-FriendlyYes4%No
North Carolina Not Tax-FriendlyYes4.99%No
Oklahoma Not Tax-FriendlyYes0.25%No
Oregon Not Tax-FriendlyYes4.75%No
Rhode Island Not Tax-FriendlyYes3.75%Yes
West Virginia Not Tax-FriendlyYes3%Yes
Connecticut Least Tax-FriendlyYes3%Yes
Indiana Least Tax-FriendlyYes3.23%No
Kansas Least Tax-FriendlyYes3.1%Yes
Maryland Least Tax-FriendlyYes2%No
Minnesota Least Tax-FriendlyYes5.35%Yes
Nebraska Least Tax-FriendlyYes2.46%Yes
New Mexico Least Tax-FriendlyYes1.7%Yes
Utah Least Tax-FriendlyYes4.95%Yes
Vermont Least Tax-FriendlyYes3.35%Yes
Wisconsin Least Tax-FriendlyYes3.54%No
Arizona MixedYes2.59%No
California MixedYes1%No
Colorado MixedYes4.55%Yes
Idaho MixedYes1%No
Illinois MixedNo4.95%No
Maine MixedYes5.8%No
Missouri MixedYes1.5%No
New Jersey MixedYes1.4%No
Ohio MixedYes2.77%No
Alabama Tax-FriendlyNo2%No
Delaware Tax-FriendlyYes2.2%No
Hawaii Tax-FriendlyNo1.4%No
Louisiana Tax-FriendlyYes1.85%No
North Dakota Tax-FriendlyYes1.1%Yes
South Carolina Tax-FriendlyYes0%No
Tennessee Tax-FriendlyNo0%No
Texas Tax-FriendlyNo0%No
Virginia Tax-FriendlyYes2%No
Washington Tax-FriendlyNo7%No
Alaska Most Tax-FriendlyNo0%No
Florida Most Tax-FriendlyNo0%No
Georgia Most Tax-FriendlyYes1%No
Kentucky Most Tax-FriendlyYes5%No
Mississippi Most Tax-FriendlyNo4%No
Nevada Most Tax-FriendlyNo0%No
New Hampshire Most Tax-FriendlyNo5%No
Pennsylvania Most Tax-FriendlyNo3.07%No
South Dakota Most Tax-FriendlyNo0%No
Wyoming Most Tax-FriendlyNo0%No
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Retirement Tax Friendliness by State

Alabama

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Retirement Tax Friendliness

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Tax-Friendly

Ranked in the US

#28

Income Tax Rate

Alaska

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Retirement Tax Friendliness

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Most Tax-Friendly

Ranked in the US

#44

Income Tax Rate

Arizona

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Retirement Tax Friendliness

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Mixed

Ranked in the US

#25

Income Tax Rate

Arkansas

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Not Tax-Friendly

Ranked in the US

#29

Income Tax Rate

California

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Mixed

Ranked in the US

#38

Income Tax Rate

Colorado

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Mixed

Ranked in the US

#11

Income Tax Rate

Connecticut

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Least Tax-Friendly

Ranked in the US

#22

Income Tax Rate

Delaware

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Tax-Friendly

Ranked in the US

#27

Income Tax Rate

Florida

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Most Tax-Friendly

Ranked in the US

#45

Income Tax Rate

Georgia

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Most Tax-Friendly

Ranked in the US

#39

Income Tax Rate

Hawaii

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Tax-Friendly

Ranked in the US

#35

Income Tax Rate

Idaho

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Mixed

Ranked in the US

#40

Income Tax Rate

Illinois

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Mixed

Ranked in the US

#8

Income Tax Rate

Indiana

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Least Tax-Friendly

Ranked in the US

#19

Income Tax Rate

Iowa

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Not Tax-Friendly

Ranked in the US

#42

Income Tax Rate

Kansas

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Least Tax-Friendly

Ranked in the US

#20

Income Tax Rate

Kentucky

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Most Tax-Friendly

Ranked in the US

#4

Income Tax Rate

Louisiana

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Tax-Friendly

Ranked in the US

#32

Income Tax Rate

Maine

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Mixed

Ranked in the US

#2

Income Tax Rate

Maryland

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Least Tax-Friendly

Ranked in the US

#30

Income Tax Rate

Massachusetts

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Not Tax-Friendly

Ranked in the US

#5

Income Tax Rate

Michigan

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Not Tax-Friendly

Ranked in the US

#12

Income Tax Rate

Minnesota

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Least Tax-Friendly

Ranked in the US

#3

Income Tax Rate

Mississippi

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Most Tax-Friendly

Ranked in the US

#14

Income Tax Rate

Missouri

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Mixed

Ranked in the US

#34

Income Tax Rate

Montana

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Not Tax-Friendly

Ranked in the US

#41

Income Tax Rate

Nebraska

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Least Tax-Friendly

Ranked in the US

#26

Income Tax Rate

Nevada

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Most Tax-Friendly

Ranked in the US

#46

Income Tax Rate

New Hampshire

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Most Tax-Friendly

Ranked in the US

#6

Income Tax Rate

New Jersey

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Mixed

Ranked in the US

#36

Income Tax Rate

New Mexico

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Least Tax-Friendly

Ranked in the US

#33

Income Tax Rate

New York

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Not Tax-Friendly

Ranked in the US

#15

Income Tax Rate

North Carolina

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Not Tax-Friendly

Ranked in the US

#7

Income Tax Rate

North Dakota

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Tax-Friendly

Ranked in the US

#37

Income Tax Rate

Ohio

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Mixed

Ranked in the US

#24

Income Tax Rate

Oklahoma

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Not Tax-Friendly

Ranked in the US

#43

Income Tax Rate

Oregon

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Not Tax-Friendly

Ranked in the US

#10

Income Tax Rate

Pennsylvania

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Most Tax-Friendly

Ranked in the US

#21

Income Tax Rate

Rhode Island

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Not Tax-Friendly

Ranked in the US

#16

Income Tax Rate

South Carolina

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Tax-Friendly

Ranked in the US

#47

Income Tax Rate

South Dakota

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Most Tax-Friendly

Ranked in the US

#48

Income Tax Rate

Tennessee

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Tax-Friendly

Ranked in the US

#49

Income Tax Rate

Texas

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Tax-Friendly

Ranked in the US

#50

Income Tax Rate

Utah

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Least Tax-Friendly

Ranked in the US

#9

Income Tax Rate

Vermont

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Least Tax-Friendly

Ranked in the US

#18

Income Tax Rate

Virginia

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Tax-Friendly

Ranked in the US

#31

Income Tax Rate

Washington

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Tax-Friendly

Ranked in the US

#1

Income Tax Rate

West Virginia

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Not Tax-Friendly

Ranked in the US

#23

Income Tax Rate

Wisconsin

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Least Tax-Friendly

Ranked in the US

#17

Income Tax Rate

Wyoming

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Most Tax-Friendly

Ranked in the US

#51

Income Tax Rate

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