13 States That Don't Tax Retirement Income

Here are the states that don’t tax retirement income. But that doesn’t mean you won’t pay state taxes on other types of earnings.

glass jar with money and old gold compass lying in the sand on the beach for retirement destination
(Image credit: Getty Images)

Moving to one of the states that don’t tax retirement income might be one way to pay less taxes in retirement. Some states tax only some types of earnings while others don't tax income at all. If your retirement income includes Social Security benefits, distributions from a 401(k) or IRA, or a pension, you won't see a tax bill from the states on this list.  

States that don’t tax retirement income 

While these states don't tax "traditional retirement income," you might still have to pay tax on other types of income you earn in retirement, such as from wages, interest, and dividends. Additionally, federal income tax still applies in these states.

Note: Some of the states on this list have relatively high inheritance, estate, and sales taxes. Those taxes can influence how much money you may or may not save as a resident of these states. 

Katelyn Washington
Tax Writer

Katelyn has more than 6 years’ experience working in tax and finance. While she specializes in tax content, Katelyn has also written for digital publications on topics including insurance, retirement and financial planning and has had financial advice commissioned by national print publications. She believes that knowledge is the key to success and enjoys helping others reach their goals by providing content that educates and informs.