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7 States That Don’t Tax Your Pension, 401(k), Social Security, and More

February 22, 2023 · Personal Finance
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Nebraska

Nebraska’s Social Security income tax rate usually ranges from 2.46% to 6.84%. Those who are single and couples who file jointly are fully exempt from having their Social Security benefits taxed, as long as their AGIs are smaller than $44,460 and $59,960.

Besides, Nebraska is completely phasing out taxation of benefits, thanks to a new state law, which started two years ago. According to this law, beneficiaries will get a 5% cut in taxes on their Social Security checks.

The reduction is expected to grow to 50% by 2025 when lawmakers are expected to vote on whether they will eliminate the tax on benefits by 2030.

If you’re glad you found this piece, you might also want to try: Here’s Why Your Parents Retired More Easily Than You Will

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29 comments on “7 States That Don’t Tax Your Pension, 401(k), Social Security, and More”

  1. Roger says:
    May 23, 2026 at 11:41 am

    What are the best states for retirement?

    Reply
  2. Thomas says:
    March 5, 2026 at 1:38 am

    How many people live too be 100 and if you do you’re too dam old.

    Reply
  3. Sean Stites says:
    March 2, 2026 at 11:16 pm

    I never saw the 7 states listed anywhere in this article rife with ads & other distractions!

    Reply
  4. James Gong says:
    March 29, 2025 at 1:06 am

    No it is that the politicians and lobbyist make so much income they think all the lower level job people include retiree have the same amount of disposable income so they take care of their life style and the hell with those who pay their salaries. So get rid of the many lobbyist and their pushing agenda paying politicians and the politicians might just working for the tax payer again. know what a dollar will by when you only have a dollar.

    Reply
  5. Roger Stoll says:
    March 25, 2025 at 8:19 pm

    Florida also has no state income tax

    Reply
  6. Juan M says:
    January 29, 2025 at 5:55 pm

    Democrats love to TAX productive Americans so they can BUY the votes of unproductive people with handouts. The Hasidic n NY have 8 and more children and SCAM every government program by not being married by the state (only married by their rabbi) so they can claim to be ‘unwed mothers’. The whore politicians say nothing because they want their ‘block vote’.

    Reply
  7. Bill-3 says:
    January 10, 2025 at 3:29 am

    You have an omission: Rhode Island DOES NOT TAX Miltary pensions.

    Reply
  8. Saroeun lee says:
    November 12, 2024 at 6:50 pm

    Where are your 7 states ?

    Reply
  9. Norman says:
    November 11, 2024 at 10:13 pm

    New Mexico exempts $35K of military retirement benefits from state income tax. Also, any portion of Social Security benefits taxed by the federal government, is exempt from state income tax. If you live to be 100years old, you are also exempt from all state income taxes!

    Reply
  10. Andrea says:
    October 6, 2024 at 6:22 pm

    Three states with extremely cold temperatures and ice to slip and fall on.
    Want to shovel snow at 70? Want to slip on ice at that age or older?
    Nope.

    Reply
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