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

February 22, 2023 · Updated February 23, 2023 · Personal Finance
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There are also three other states with income taxes that give retirees a well-deserved break on pensions and retirement plan distributions. For instance, Illinois has a 4.95 percent flat income tax, and it won’t tax distributions from the majority of pensions and 401(k) plans, but also IRAs.

Also, Mississippi’s maximum state tax is 5%, and it doesn’t tax any retirement distribution, while Pennsylvania has a 3.07 percent flat tax, and doesn’t tax retirement plans at all.

When it comes to other states, it seems that the next best thing is carving out a couple of exemptions for retirement income. For instance, besides those nine states that don’t have any income tax, it seems that no less than 21 states don’t apply any kind of tax on military pay.

These states are Alabama, Arkansas, Connecticut, Hawaii (who would’ve thought?), Illinois, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota (everyone expected this from Minnesota!), Mississippi, Missouri, New Jersey, and New York (as expensive as this state is, the least they could do was to exempt military tax), North Dakota, Ohio, Pennsylvania, but also West Virginia, and Wisconsin.

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

  1. David Gonzalez says:
    May 26, 2026 at 9:49 pm

    They simply lie of those bull shit states

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

    What are the best states for retirement?

    Reply
  3. 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
  4. 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
  5. 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
  6. Roger Stoll says:
    March 25, 2025 at 8:19 pm

    Florida also has no state income tax

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

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

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

    Where are your 7 states ?

    Reply
  10. 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
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