12 States That Won't Tax Your Retirement Income

Retirees can save a lot of money in these states that completely exempt the most common types of retirement income – 401(k)s, IRAs and pensions – from taxation.

picture of retirement party cupcakes
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You've worked hard all your life, and now you're retired (or will retire soon). Unfortunately, there's a pretty good chance that Uncle Sam is going to take a cut of your 401(k), traditional IRA or pension income. But what about your state? Will it take a bite out of your retirement income, too?

Most states tax at least a portion of retirement income (including some states that tax Social Security benefits). Your state might offer some tax breaks, but those breaks usually have limitations based on your age and/or income. A few states, however, completely exempt the most common types of retirement income — 401(k)s, IRAs and pensions — from taxation. That's a huge plus for retirees living in those states.

Here are 12 states where you don't have to pay tax on any of your 401(k), IRA or pension income (listed alphabetically). If you live — or plan to live — in one of these states, you can stretch your retirement savings quite a bit further.

Rocky Mengle
Senior Tax Editor, Kiplinger.com

Rocky was a Senior Tax Editor for Kiplinger from October 2018 to January 2023. He has more than 20 years of experience covering federal and state tax developments. Before coming to Kiplinger, he worked for Wolters Kluwer Tax & Accounting and Kleinrock Publishing, where he provided breaking news and guidance for CPAs, tax attorneys, and other tax professionals. He has also been quoted as an expert by USA Today, Forbes, U.S. News & World Report, Reuters, Accounting Today, and other media outlets. Rocky has a law degree from the University of Connecticut and a B.A. in History from Salisbury University.