Retirement Taxes by State

Retirement Tax Friendliness
Tax on Pensions
Retirement Tax Friendliness
AlabamaAlabamaTax-Friendly
AlaskaAlaskaMost Tax-Friendly
ArizonaArizonaMixed
ArkansasArkansasNot Tax-Friendly
CaliforniaCaliforniaMixed
ColoradoColoradoMixed
ConnecticutConnecticutLeast Tax-Friendly
DelawareDelawareTax-Friendly
FloridaFloridaMost Tax-Friendly
GeorgiaGeorgiaMost Tax-Friendly
HawaiiHawaiiTax-Friendly
IdahoIdahoMixed
IllinoisIllinoisMixed
IndianaIndianaLeast Tax-Friendly
IowaIowaNot Tax-Friendly
KansasKansasLeast Tax-Friendly
KentuckyKentuckyMost Tax-Friendly
LouisianaLouisianaTax-Friendly
MaineMaineMixed
MarylandMarylandLeast Tax-Friendly
MassachusettsMassachusettsNot Tax-Friendly
MichiganMichiganNot Tax-Friendly
MinnesotaMinnesotaLeast Tax-Friendly
MississippiMississippiMost Tax-Friendly
MissouriMissouriMixed
MontanaMontanaNot Tax-Friendly
NebraskaNebraskaLeast Tax-Friendly
NevadaNevadaMost Tax-Friendly
New HampshireNew HampshireMost Tax-Friendly
New JerseyNew JerseyMixed
New MexicoNew MexicoLeast Tax-Friendly
New YorkNew YorkNot Tax-Friendly
North CarolinaNorth CarolinaNot Tax-Friendly
North DakotaNorth DakotaTax-Friendly
OhioOhioMixed
OklahomaOklahomaNot Tax-Friendly
OregonOregonNot Tax-Friendly
PennsylvaniaPennsylvaniaMost Tax-Friendly
Rhode IslandRhode IslandNot Tax-Friendly
South CarolinaSouth CarolinaTax-Friendly
South DakotaSouth DakotaMost Tax-Friendly
TennesseeTennesseeTax-Friendly
TexasTexasTax-Friendly
UtahUtahLeast Tax-Friendly
VermontVermontLeast Tax-Friendly
VirginiaVirginiaTax-Friendly
WashingtonWashingtonTax-Friendly
West VirginiaWest VirginiaNot Tax-Friendly
WisconsinWisconsinLeast Tax-Friendly
WyomingWyomingMost Tax-Friendly
Rankings
/
Taxes

Table of Contents

↑
Share

Tax Implications for Retirement across the States

When it comes to retirement, the choice of state to settle in can have significant financial implications due to different tax structures across the United States. Many retirees assume the cessation of work means an end to tax woes, but the reality is different – taxes continue to apply on retirement incomes. These vary greatly from state to state, encompassing not only income tax but also sales, property, estate, and inheritance tax rates. Therefore, understanding the tax landscape in your chosen state is essential to ensuring a financially secure retirement. The data illuminates a spectrum from states rated as 'Most Tax-Friendly,' implying that they impose the least tax burden on their retirees—through 'Tax-Friendly,’ ‘Mixed,’ ‘Not Tax-Friendly’ to ‘Least Tax-Friendly’ states, which place the highest taxation burden on the retirement income.

  • The 'Most Tax-Friendly' states, aimed at providing a haven for retirees by keeping taxes on their income at the minimum, comprise ten states including Alaska, Florida, Georgia, Kentucky, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, and Wyoming.
  • Conversely, states such as Connecticut, Indiana, Kansas, Maryland, Minnesota, Nebraska, New Mexico, Utah, Vermont, and Wisconsin, considered ‘Least Tax-Friendly,' impose the highest taxation on retirees.
  • Seven states have no income tax at all: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming, suggesting that large aspects of a retiree's income could be tax-free.
  • States like California, Arizona, Illinois, and Ohio bear a ‘Mixed’ title, indicating varying tax norms that may or may not suit certain retirees.

By Region

Alabama

See Less
Alabama

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

No

Alaska

See More
Alaska

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Arizona

See More
Arizona

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Arkansas

See More
Arkansas

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

California

See More
California

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Colorado

See More
Colorado

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Connecticut

See More
Connecticut

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Delaware

See More
Delaware

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

Yes

Florida

See More
Florida

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Georgia

See More
Georgia

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

Yes

Hawaii

See More
Hawaii

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

No

Idaho

See More
Idaho

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Illinois

See More
Illinois

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

No

Indiana

See More
Indiana

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Iowa

See More
Iowa

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Kansas

See More
Kansas

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Kentucky

See More
Kentucky

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

Yes

Louisiana

See More
Louisiana

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

Yes

Maine

See More
Maine

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Maryland

See More
Maryland

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Massachusetts

See More
Massachusetts

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Michigan

See More
Michigan

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Minnesota

See More
Minnesota

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Mississippi

See More
Mississippi

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Missouri

See More
Missouri

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Montana

See More
Montana

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Nebraska

See More
Nebraska

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Nevada

See More
Nevada

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

New Hampshire

See More
New Hampshire

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

New Jersey

See More
New Jersey

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

New Mexico

See More
New Mexico

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

New York

See More
New York

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

North Carolina

See More
North Carolina

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

North Dakota

See More
North Dakota

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

Yes

Ohio

See More
Ohio

Metric

Value

Rank

Retirement Tax Friendliness

Mixed

Tax on Pensions

Yes

Oklahoma

See More
Oklahoma

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Oregon

See More
Oregon

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Pennsylvania

See More
Pennsylvania

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Rhode Island

See More
Rhode Island

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

South Carolina

See More
South Carolina

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

Yes

South Dakota

See More
South Dakota

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Tennessee

See More
Tennessee

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

No

Texas

See More
Texas

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

No

Utah

See More
Utah

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Vermont

See More
Vermont

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Virginia

See More
Virginia

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

Yes

Washington

See More
Washington

Metric

Value

Rank

Retirement Tax Friendliness

Tax-Friendly

Tax on Pensions

No

West Virginia

See More
West Virginia

Metric

Value

Rank

Retirement Tax Friendliness

Not Tax-Friendly

Tax on Pensions

Yes

Wisconsin

See More
Wisconsin

Metric

Value

Rank

Retirement Tax Friendliness

Least Tax-Friendly

Tax on Pensions

Yes

Wyoming

See More
Wyoming

Metric

Value

Rank

Retirement Tax Friendliness

Most Tax-Friendly

Tax on Pensions

No

Table

Region ↕Retirement Tax Friendliness ↕Tax on Pensions ↕
Alabama iconAlabamaTax-FriendlyNo
Alaska iconAlaskaMost Tax-FriendlyNo
Arizona iconArizonaMixedYes
Arkansas iconArkansasNot Tax-FriendlyYes
California iconCaliforniaMixedYes
Colorado iconColoradoMixedYes
Connecticut iconConnecticutLeast Tax-FriendlyYes
Delaware iconDelawareTax-FriendlyYes
Florida iconFloridaMost Tax-FriendlyNo
Georgia iconGeorgiaMost Tax-FriendlyYes
Hawaii iconHawaiiTax-FriendlyNo
Idaho iconIdahoMixedYes
Illinois iconIllinoisMixedNo
Indiana iconIndianaLeast Tax-FriendlyYes
Iowa iconIowaNot Tax-FriendlyYes
Kansas iconKansasLeast Tax-FriendlyYes
Kentucky iconKentuckyMost Tax-FriendlyYes
Louisiana iconLouisianaTax-FriendlyYes
Maine iconMaineMixedYes
Maryland iconMarylandLeast Tax-FriendlyYes
Massachusetts iconMassachusettsNot Tax-FriendlyYes
Michigan iconMichiganNot Tax-FriendlyYes
Minnesota iconMinnesotaLeast Tax-FriendlyYes
Mississippi iconMississippiMost Tax-FriendlyNo
Missouri iconMissouriMixedYes
Montana iconMontanaNot Tax-FriendlyYes
Nebraska iconNebraskaLeast Tax-FriendlyYes
Nevada iconNevadaMost Tax-FriendlyNo
New Hampshire iconNew HampshireMost Tax-FriendlyNo
New Jersey iconNew JerseyMixedYes
New Mexico iconNew MexicoLeast Tax-FriendlyYes
New York iconNew YorkNot Tax-FriendlyYes
North Carolina iconNorth CarolinaNot Tax-FriendlyYes
North Dakota iconNorth DakotaTax-FriendlyYes
Ohio iconOhioMixedYes
Oklahoma iconOklahomaNot Tax-FriendlyYes
Oregon iconOregonNot Tax-FriendlyYes
Pennsylvania iconPennsylvaniaMost Tax-FriendlyNo
Rhode Island iconRhode IslandNot Tax-FriendlyYes
South Carolina iconSouth CarolinaTax-FriendlyYes
South Dakota iconSouth DakotaMost Tax-FriendlyNo
Tennessee iconTennesseeTax-FriendlyNo
Texas iconTexasTax-FriendlyNo
Utah iconUtahLeast Tax-FriendlyYes
Vermont iconVermontLeast Tax-FriendlyYes
Virginia iconVirginiaTax-FriendlyYes
Washington iconWashingtonTax-FriendlyNo
West Virginia iconWest VirginiaNot Tax-FriendlyYes
Wisconsin iconWisconsinLeast Tax-FriendlyYes
Wyoming iconWyomingMost Tax-FriendlyNo
Keep reading

Additional Tax Datasets

Sales Tax By State
Taxes
U.S.

Sales Tax By State

View Ranking ->
State Tax Rates
Taxes
U.S.

State Tax Rates

View Ranking ->
States with Lowest Taxes
Taxes
U.S.

States with Lowest Taxes

View Ranking ->
States with No Income Tax
Taxes
U.S.

States with No Income Tax

View Ranking ->
States with no Property Tax
Taxes
U.S.

States with no Property Tax

View Ranking ->
Tax Burden By State
Taxes
U.S.

Tax Burden By State

View Ranking ->