Taxes on Retirees: A State by State Guide
See how each state treats retirees when it comes to income, sales, property and other taxes.
![outline of U.S. map made of different denominations of dollar bills](https://cdn.mos.cms.futurecdn.net/9og2W3dxQJ5u6ojFqMfieQ-415-80.jpg)
There are several factors to consider when deciding where to relocate once you retire, and state tax on retirees is probably one of them. After all, taxes don’t stop once you leave the workforce, and high-tax states can drain retirement savings faster than states with lower taxes. Additionally, overall tax burdens can vary significantly from one state to another. That’s why Kiplinger created this state-by-state guide to taxes in retirement.
The interactive map below highlights the most and least tax-friendly states for retirees. You can also use the map to navigate to our state tax guides which include detailed information about income, sales, property, gasoline, estate and other taxes that impact retirees in each of the 50 states and the District of Columbia. This information may help you compare taxes for retirees by state.
Kiplinger's tax map for retirees
Our ranking for the most tax-friendly states for retirees is based on two major factors. Only states that don't tax retirement benefits were considered. Of those 13 states, the 10 with the lowest median property taxes paid were chosen.
![https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-200-80.png](https://cdn.mos.cms.futurecdn.net/hwgJ7osrMtUWhk5koeVme7-320-80.png)
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For our ranking for the worst states to retire in (which place the highest tax burden on retirees), we considered states that still tax Social Security retirement benefits for single filers with an adjusted gross income (AGI) below $75,000. Then, we factored in states with the highest median property tax bills.
Retiree taxes: What else you need to know
How the IRS Taxes Retirement Income: Provides a breakdown of common sources of income and information on the federal tax treatment of each. This information can help you develop a tax-efficient strategy for your retirement years.
Taxes in Retirement: How All 50 States Tax Retirees: Provides an overview of how income from employment, investments, a pension, retirement distributions and Social Security are taxed in every state.
10 Most Tax-Friendly States for Retirees: Knowing which are the most tax-friendly states for retirees may help you make your decision. Just keep in mind that no state has zero taxes. So, where some types of taxes are low, other types may be high. Considering the pros and cons of state taxes will provide you with the best overall tax picture.
Worst States to Retire in Due to Taxes: If a primary concern as you consider your retirement destination is saving money on taxes, the places on this list are the worst states to retire in. That's because high property taxes and taxes on traditional types of retirement income, like Social Security, pensions and distributions from a 401(k) or IRA, make these states more expensive than most for many retirees.
15 States That Don't Tax Pension Income: Most states tax at least a portion of the income from many retirement benefit plans. Your state might have a pension exclusion, but chances are it's limited based on your age and/or income. However, some states don't tax pension income no matter your age or how much money you have.
Most Expensive States for Retired Military Service Members: You can’t avoid paying federal tax on your military retirement pay since the IRS taxes that income as a pension. But you might be able to escape a state tax bill — as long as you don’t retire in one of the places on this list.
See the full tax picture by state
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- Washington, D.C.
- West Virginia
- Wisconsin
- Wyoming
Article sources
Tax map sources: Data for state tax guides is gathered from several sources including the U.S Census Bureau, state government websites, the Sales Tax Handbook, and the Tax Foundation. Property taxes are cited as a rate percentage rather than the assessed value.
See our Tax Map for Retirees Methodology
Related content
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.
-
Want to Earn $1 Million More Over Your Lifetime? Do This
It's simple: Go to college or a trade school. It's an investment that will pay huge dividends for the rest of your life. And the benefits go far beyond money.
By Brian Evans, CPA, PFS Published
-
What Impact Does Politics Have on Insurance?
Some governors choose their state's insurance commissioner, while other states elect theirs, and that person has power over insurance issues, including rates.
By Karl Susman, CPCU, LUTCF, CIC, CSFP, CFS, CPIA, AAI-M, PLCS Published
-
IRS Ends Inherited IRA Confusion: Annual RMDs Required for Many
IRAs The agency has resolved a major point of uncertainty for inherited IRA beneficiaries.
By Kelley R. Taylor Last updated
-
$145 Million in ‘Senior Freeze’ Checks Mailed
Property Tax What you need to know about New Jersey's property tax relief program for older adults.
By Kate Schubel Published
-
TaxAct Class Action Settlement: Details to Know
Tax Filing A multimillion-dollar settlement over alleged data privacy violations affects some TaxAct users.
By Kelley R. Taylor Last updated
-
An IRA Contribution Option You Might Not Know
IRAs Retirement savings might not have to take a back seat just because your partner doesn't earn income.
By Kelley R. Taylor Last updated
-
Project 2025 Tax Overhaul Blueprint: What You Need to Know
Tax Proposals Some people wonder what Project 2025 is and what it suggests for taxes.
By Kelley R. Taylor Last updated
-
The Taxes That Come out of Your Paycheck
Payroll Tax Your take-home pay is often less than expected due to several payroll tax withholdings you need to know.
By Kelley R. Taylor Last updated
-
Seven States Where Gas Tax Increased July 1
Gas Taxes Since July has arrived, drivers in several states are facing a gas tax hike.
By Kelley R. Taylor Last updated
-
401(k) Withdrawal Penalty Rule Changes for 2024
Tax Rules More people are taking early emergency withdrawals from retirement savings accounts. New rules might offer some relief.
By Kelley R. Taylor Last updated