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

February 22, 2023 Β· Personal Finance
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Minnesota

Minnesota has the same thresholds as the federal government, to determine just how much should the state tax a retiree’s Social Security benefits. Besides, those who owe taxes on their benefits should take advantage of Minnesota’s Social Security Subtraction, to secure at least a partial deduction.

For instance, in 2021, single filers and couples who filed together were able to exempt as much as $4,130 and $5,290 from their federally taxable benefits taken from their Minnesota income.

It’s also worth mentioning that this doesn’t apply to residents who are in a higher income bracket. Single filers and couples with AGIs of a minimum of $62,710 and $80,270 only qualify for a partial exemption; while those with AGIs above $83,360 and $106,720 don’t qualify.

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26 responses to “7 States That Don’t Tax Your Pension, 401(k), Social Security, and More”

  1. SHERRY says:
    February 10, 2024 at 1:50 pm

    Why can’t Virginia be one of the; NO TAX STATE!!! Is it because it’s so close to D.C.???

    Reply
    • Donna Haynes says:
      August 12, 2024 at 11:34 pm

      NC is right there with VA, PLUS the highest gas tax in the east. 😑

      Reply
    • mcsam says:
      October 7, 2024 at 12:35 am

      Bull’s Eye

      Reply
    • jerry1944 says:
      November 10, 2024 at 8:38 am

      They cant get there PORK if they dont tax and they HAVE to make there pork Dems love pork

      Reply
    • Bobo360 says:
      November 10, 2024 at 1:12 pm

      Because your elected officials are more intelligent than the riff-raff, who elected them, on how to spend your money that you do not deserve anyway.

      Reply
    • Sean says:
      November 11, 2024 at 4:52 pm

      You can get tax exempt if you send up packet. IRS initiative 656 I believe. Don’t quote me

      Reply
    • joseph nekerbaum says:
      December 6, 2024 at 3:01 am

      no, it’s because you chose the wrong state to live in. I have 3 govt pensions, all 3 are tax free, I can live in any state and pay no taxes.

      Reply
    • Juan M says:
      January 29, 2025 at 5:57 pm

      Too many Democrats in Virginia….Democcrrats love to tax working people to buy votes from freeloaders.

      Reply
  2. Evette says:
    August 13, 2024 at 8:58 pm

    Well arkansas and irs taxed the hell out of my 401k…that’s a dmn shame we think that we are saving up for retirement and have nothing more when we retire plus social security don’t want to give us nothing want us too work until we are 70 to get full money we have worked for all our lives πŸ™„πŸ˜¬πŸ˜¬the government is a joke but the rich gets everything and poor gets nothing….and they do all the damn work…whyyyyy

    Reply
  3. Paula J. Rowell says:
    August 13, 2024 at 11:55 pm

    We moved from Massachusetts to North Carolina about 20 years ago. NC taxed my husbands pension. I had been on disability in MA, I lost it when I moved to NC. I now live in PA and pension is not taxed but I never got my disability back. We lost a lot of money. NO state should tax someone’s pension or SS or disability.

    Reply
  4. John says:
    September 14, 2024 at 9:11 pm

    Get rid of ads

    Reply
  5. Dick says:
    September 14, 2024 at 10:58 pm

    Arizona doesn’t tax military pensions

    Reply
  6. CHRISTY says:
    September 15, 2024 at 1:28 am

    what about Kansas and Arkansas ?

    Reply
  7. diana says:
    September 15, 2024 at 4:17 pm

    D0es Colorado charge Income Tax fees?

    Reply
  8. Joe says:
    September 15, 2024 at 5:37 pm

    Not enough is done to help retirees. The federal goverment and states have to help us. Most countries help retirees. It is rediculous and AARP should be working on this !

    Reply
  9. Gary says:
    September 16, 2024 at 9:40 pm

    Pensions and Social Security should NEVER be taxed. They have been taxed before they became your retirement. What evil jerk does this? We pay taxes all our working lives and when we retire, our savings and Social Security should never be touched by taxes. Social Security IS a tax we pay, it’s already been taxed.

    Reply
  10. DogDay says:
    October 6, 2024 at 5:41 am

    Where is the list??

    Reply
  11. DogDay says:
    October 6, 2024 at 5:43 am

    One has to wade through all the ads and attempts to capture one’s attention to get to the list. This is aggravating and I won’t play!

    Reply
  12. James says:
    October 6, 2024 at 5:05 pm

    Total BS

    Reply
  13. 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
  14. 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
  15. Saroeun lee says:
    November 12, 2024 at 6:50 pm

    Where are your 7 states ?

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

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

    Reply
  17. 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
  18. Roger Stoll says:
    March 25, 2025 at 8:19 pm

    Florida also has no state income tax

    Reply
  19. 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

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