As of the 2026 state comparison from the Connecticut Office of Legislative Research, nine states do not impose a broad-based income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. That makes them a useful starting point if you want to avoid state income tax on retirement income, but it does not mean every kind of retirement income or every tax is treated identically in every state.
Other states tax income generally but exempt or deduct certain retirement benefits, sometimes only for eligible taxpayers. The right answer depends on the income source, tax year, and rules that apply to you.
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Which states do not impose a broad-based income tax?
The Connecticut Office of Legislative Research identifies these nine states in its 2026 comparison:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
This is a list based on whether a state imposes a broad-based income tax—not a state-by-state guarantee that Social Security, pensions, military retirement, and every IRA or 401(k) distribution are all exempt under every circumstance. The same 2026 report treats Social Security separately: it counts 33 states as fully exempting Social Security benefits, seven as providing a limited exemption, and one state with a broad-based income tax as providing no Social Security exemption. Those Social Security figures do not establish how pensions or retirement-account withdrawals are treated.
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Why the type of retirement income matters
States may treat Social Security, public and private pensions, military retirement, and distributions from traditional or Roth IRAs and 401(k)s differently. A state may exclude one category, offer a deduction for another, or impose conditions such as an age or income limit. A rule for Social Security is not proof that other retirement income is exempt.
- Social Security: Check the state rule for the tax year in question; a full or limited exemption concerns Social Security benefits specifically.
- Pensions: Public, private, military, and other pensions may fall under different rules or qualifications.
- IRA and 401(k) distributions: Look for rules that expressly cover the account type and the kind of distribution. Do not assume that a pension deduction applies to account withdrawals.
Examples of state rules beyond the nine-state list
Several state tax authorities illustrate how an income tax can coexist with exemptions or deductions for particular retirement income.
| State | What the state guidance establishes | Important qualification |
|---|---|---|
| Tennessee | The Tennessee Department of Revenue says Social Security and pension income are not subject to Tennessee tax because the state income tax does not apply to salaries and wages. | The statement addresses Social Security and pension income; it should not be expanded into a claim about every tax or every possible income category. |
| Iowa | The Iowa Department of Revenue says eligible taxpayers may exclude retirement income from Iowa taxable income. | The exclusion applies to eligible taxpayers for tax years beginning on or after January 1, 2023; it is not an unconditional exemption for everyone. |
| Maine | Maine Revenue Services describes a deduction for qualifying pension income. For tax years beginning in 2025, the stated amount is $48,216. | The deduction is reduced by Social Security and railroad retirement benefits. The amount is tax-year-specific and subject to the rules for the taxpayer and qualifying income. |
| Delaware | Delaware’s personal income tax FAQ describes eligible retirement income, including qualifying IRA and 401(k) distributions, within a state income-tax system. | Eligibility and the treatment of the particular distribution matter; the existence of an exclusion does not make all retirement income tax-free. |
| Illinois | Illinois identifies Social Security and certain retirement plans, including qualified employee benefit plans, in its retirement-benefit guidance. | Apply the current state instructions to the specific benefit rather than assuming every payment is covered. |
| Louisiana | Louisiana law provides an age-qualified annual retirement-income exemption and calls for annual adjustment beginning in 2026. The Department of Revenue also lists benefit types that may be excluded. | Check the statute and current filing-year instructions for the taxpayer’s age and specific benefit. |
How to compare states for your own retirement income
- List each income source. Separate Social Security, each pension, military retirement, and each IRA or 401(k) distribution. Record the type of account and benefit, not just the total amount.
- Choose the tax year. Use rules and thresholds for the year you expect to file. For example, Maine’s stated $48,216 pension deduction amount applies to tax years beginning in 2025, not automatically to other years.
- Check eligibility. Look for age, income, filing-status, benefit-type, and other conditions. Iowa’s exclusion, Maine’s deduction, and Louisiana’s exemption demonstrate that qualifications can determine the result.
- Compare like with like. Apply the same income sources, tax year, and eligibility assumptions to each state. Keep Social Security, pension, and retirement-account rules separate.
- Separate income tax from overall cost. A state’s income-tax treatment alone does not establish whether it is less expensive overall. This comparison does not evaluate sales, property, estate, or inheritance taxes, or cost of living.
What the nine-state list does—and does not—tell you
The nine states are a clear starting point for looking at state income tax, but the label “no broad-based income tax” is not a complete retirement-tax analysis. The Connecticut Office of Legislative Research’s 2026 Social Security counts address Social Security, while the state examples above show that other rules can depend on the kind of benefit and the taxpayer’s eligibility. For a move or a filing decision, confirm the current-year instructions from the relevant state tax authority for each income source you receive.
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