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🇺🇸2026 retirement model

Retirement Taxes by State

Compare Social Security taxation, pension and IRA treatment, estate and inheritance taxes, and supporting property and sales rates across all 50 states and DC. See which states still tax benefits, which shelter retirement withdrawals, and how to choose a retiree-friendly state before you move.

By Sammy S. · Founder · AuthorUpdated for 2026

8

Still tax some Social Security

9

No state income tax

5

Exempt most retirement income

51

States + DC covered

View rankingsCompare states

Most retiree-friendly

#1

Alaska

States that may tax SS

8

AGI / credit phase-outs apply

Estate-tax states + DC

13

5 inheritance-tax states

Looking for a Social Security + RMD sample across popular moves? See US retiree tax destinations — then come back here for all 50 states + DC.

What this retirement taxes by state guide covers

Retirees face a stack of taxes: federal rules on Social Security and withdrawals, state income tax on benefits and pensions, estate or inheritance taxes at death, plus ongoing property and sales taxes. This guide ranks all 50 states and Washington, DC on a retiree-friendliness score focused on income and death taxes, then shows property and sales benchmarks separately.

Social Security

Whether the state has no income tax, fully exempts SS, or may tax benefits above AGI / credit thresholds.

Pensions & IRA/401(k)

No income tax, full retirement exemption, partial exclusions, or ordinary taxation of withdrawals.

Estate & inheritance

State estate-tax exemptions and top rates, plus inheritance tax for certain heirs.

Property & sales

Supporting effective property-tax and combined sales-tax rates that affect retiree cash flow.

Head-to-head

Compare retirement taxes between two states

Compare Social Security treatment, pension and IRA rules, estate/inheritance indicators, and supporting property and sales rates.

Compare any two states

Social Security, pensions/IRA, estate taxes, and supporting property/sales rates.

Florida vs CaliforniaTexas vs New YorkArizona vs IllinoisTennessee vs New JerseyNevada vs OregonSouth Carolina vs ConnecticutGeorgia vs MinnesotaPennsylvania vs Maryland

All 50 states + DC

Retirement taxes by state rankings

Rank #1 is the most retiree-friendly on this site's Social Security, retirement-income, and estate/inheritance score. Property and sales rates are shown for context and do not drive the rank.

#1Alaska

No state income tax

No state income tax · None

Prop 0.94% · Sales 1.82%

#1Florida

No state income tax

No state income tax · None

Prop 0.78% · Sales 6.98%

#1Nevada

No state income tax

No state income tax · None

Prop 0.5% · Sales 8.24%

#1New Hampshire

No state income tax

No state income tax · None

Prop 1.5% · Sales 0%

#1South Dakota

No state income tax

No state income tax · None

Prop 1% · Sales 6.11%

#1Tennessee

No state income tax

No state income tax · None

Prop 0.52% · Sales 9.61%

#1Texas

No state income tax

No state income tax · None

Prop 1.4% · Sales 8.2%

#1Wyoming

No state income tax

No state income tax · None

Prop 0.53% · Sales 5.39%

#9Iowa

SS exempt from state tax

Retirement income exempt · None

Prop 1.33% · Sales 6.94%

#9Michigan

SS exempt from state tax

Retirement income exempt · None

Prop 1.19% · Sales 6%

#9Mississippi

SS exempt from state tax

Retirement income exempt · None

Prop 0.58% · Sales 7.06%

#12Washington

No state income tax

No state income tax · Estate tax

Prop 0.75% · Sales 9.57%

#13Pennsylvania

SS exempt from state tax

Retirement income exempt · Inheritance tax

Prop 1.26% · Sales 6.34%

#14Alabama

SS exempt from state tax

Partial retirement exclusions · None

Prop 0.37% · Sales 9.46%

#14Georgia

SS exempt from state tax

Partial retirement exclusions · None

Prop 0.79% · Sales 7.56%

#14Illinois

SS exempt from state tax

Retirement income exempt · Estate tax

Prop 1.88% · Sales 8.98%

#14South Carolina

SS exempt from state tax

Partial retirement exclusions · None

Prop 0.49% · Sales 7.49%

#14Virginia

SS exempt from state tax

Partial retirement exclusions · None

Prop 0.78% · Sales 5.77%

#19Kentucky

SS exempt from state tax

Partial retirement exclusions · Inheritance tax

Prop 0.74% · Sales 6%

#19New Jersey

SS exempt from state tax

Partial retirement exclusions · Inheritance tax

Prop 1.88% · Sales 6.6%

#21Hawaii

SS exempt from state tax

Partial retirement exclusions · Estate tax

Prop 0.29% · Sales 4.5%

#21New York

SS exempt from state tax

Partial retirement exclusions · Estate tax

Prop 1.3% · Sales 8.54%

#23Arizona

SS exempt from state tax

Retirement income taxed · None

Prop 0.48% · Sales 8.54%

#23Arkansas

SS exempt from state tax

Retirement income taxed · None

Prop 0.56% · Sales 9.48%

#23California

SS exempt from state tax

Retirement income taxed · None

Prop 0.7% · Sales 9.03%

#23Delaware

SS exempt from state tax

Retirement income taxed · None

Prop 0.54% · Sales 0%

#23Idaho

SS exempt from state tax

Retirement income taxed · None

Prop 0.5% · Sales 6.03%

#23Indiana

SS exempt from state tax

Retirement income taxed · None

Prop 0.76% · Sales 7%

#23Kansas

SS exempt from state tax

Retirement income taxed · None

Prop 1.21% · Sales 8.71%

#23Louisiana

SS exempt from state tax

Retirement income taxed · None

Prop 0.55% · Sales 10.13%

#23Missouri

SS exempt from state tax

Retirement income taxed · None

Prop 0.89% · Sales 8.44%

#23North Carolina

SS exempt from state tax

Retirement income taxed · None

Prop 0.66% · Sales 7.1%

#23North Dakota

SS exempt from state tax

Retirement income taxed · None

Prop 0.92% · Sales 7.09%

#23Ohio

SS exempt from state tax

Retirement income taxed · None

Prop 1.36% · Sales 7.29%

#23Oklahoma

SS exempt from state tax

Retirement income taxed · None

Prop 0.79% · Sales 9.06%

#23West Virginia

SS exempt from state tax

Retirement income taxed · None

Prop 0.51% · Sales 6.6%

#23Wisconsin

SS exempt from state tax

Retirement income taxed · None

Prop 1.32% · Sales 5.72%

#38Colorado

SS partially taxed

Partial retirement exclusions · None

Prop 0.5% · Sales 7.89%

#39Nebraska

SS exempt from state tax

Retirement income taxed · Inheritance tax

Prop 1.44% · Sales 6.98%

#40District of Columbia

SS exempt from state tax

Retirement income taxed · Estate tax

Prop 0.56% · Sales 6%

#40Maine

SS exempt from state tax

Retirement income taxed · Estate tax

Prop 0.98% · Sales 5.5%

#40Massachusetts

SS exempt from state tax

Retirement income taxed · Estate tax

Prop 1% · Sales 6.25%

#40Oregon

SS exempt from state tax

Retirement income taxed · Estate tax

Prop 0.81% · Sales 0%

#44Maryland

SS exempt from state tax

Retirement income taxed · Estate + inheritance

Prop 0.92% · Sales 6%

#45Montana

SS partially taxed

Retirement income taxed · None

Prop 0.61% · Sales 0%

#45New Mexico

SS partially taxed

Retirement income taxed · None

Prop 0.63% · Sales 7.68%

#45Utah

SS partially taxed

Retirement income taxed · None

Prop 0.48% · Sales 7.42%

#48Connecticut

SS partially taxed

Retirement income taxed · Estate tax

Prop 1.54% · Sales 6.35%

#48Minnesota

SS partially taxed

Retirement income taxed · Estate tax

Prop 1% · Sales 8.14%

#48Rhode Island

SS partially taxed

Retirement income taxed · Estate tax

Prop 1.12% · Sales 7%

#48Vermont

SS partially taxed

Retirement income taxed · Estate tax

Prop 1.51% · Sales 6.43%

States that may still tax Social Security in 2026

8 states can tax some Social Security for certain filers. Most use AGI thresholds, age-based exclusions, or credits—so many middle-income retirees still owe $0 state tax on benefits. Federal tax on up to 85% of benefits can apply everywhere.

ColoradoConnecticutMinnesotaMontanaNew MexicoRhode IslandUtahVermont

No-income-tax and full retirement-income exemptions

No broad wage income tax means Social Security, pensions, and account withdrawals are not taxed as state income. Full-exempt states still tax wages but generally shelter qualified retirement distributions.

States with estate or inheritance taxes

Federal estate tax can still apply above about $15M for 2026. Several states layer their own estate tax with lower exemptions; five states tax certain heirs via inheritance tax (Maryland has both).

Oregon

Estate tax · exempt ~$1M · top 16%

Rhode Island

Estate tax · exempt ~$1.84M · top 16%

Massachusetts

Estate tax · exempt ~$2M · top 16%

Minnesota

Estate tax · exempt ~$3M · top 16%

Washington

Estate tax · exempt ~$3.08M · top 20%

Illinois

Estate tax · exempt ~$4M · top 16%

District of Columbia

Estate tax · exempt ~$4.99M · top 16%

Maryland

Estate + inheritance · exempt ~$5M · top 16%

Vermont

Estate tax · exempt ~$5M · top 16%

Hawaii

Estate tax · exempt ~$5.49M · top 20%

Maine

Estate tax · exempt ~$7.16M · top 12%

New York

Estate tax · exempt ~$7.35M · top 16%

Connecticut

Estate tax · exempt ~$15M · top 12%

Inheritance-tax states: Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania.

How retirement tax rankings work

Social Security

Partial state taxation adds to the score. No income tax or a full SS exemption scores better.

Retirement income

Fully taxed pensions/IRA withdrawals score worse than partial exclusions or full exemptions.

Estate & inheritance

State estate or inheritance taxes add modest penalties. Federal estate tax is separate.

Property & sales

Shown for planning but not in the rank—high property tax can offset income-tax savings.

On this model, Vermont ranks near the least favorable end (#48) because of denser income and/or death-tax exposure—not because every retiree there pays more in absolute dollars.

Social Security calculatorRMD calculator

Tax layers

Federal and state retirement taxes work in layers

Moving to a retiree-friendly state does not erase federal tax. Model both layers—and property and sales taxes—before comparing states on income treatment alone.

Federal Social Security

Up to 85% of benefits can be taxable based on combined income. Thresholds are not inflation-indexed.

State Social Security

Most states exempt benefits; a handful may tax some filers above AGI, age, or credit thresholds.

Pensions & withdrawals

Traditional IRA/401(k) and pension income is federally taxable. States may exempt, partially exclude, or tax it.

Estate & inheritance

Federal estate tax uses a high exemption. Some states add estate or inheritance tax with lower thresholds.

Planning guide

How to choose a retirement tax state

Rankings are a starting point. Your best state depends on income mix (Social Security vs pensions vs withdrawals), home value, spending, and whether heirs may face estate or inheritance tax.

    1

    Map your income mix

    List expected Social Security, pensions, IRA/401(k) withdrawals, and taxable investment income.

    2

    Check Social Security rules

    Confirm whether the state exempts benefits or may tax them above AGI or credit phase-outs.

    3

    Check retirement withdrawals

    See if pensions and account withdrawals are exempt, partially excluded, or taxed as ordinary income.

    4

    Add property and sales tax

    No-income-tax states often lean on property and sales taxes that hit retirees with paid-off homes.

    5

    Review death taxes

    Estate exemptions below the federal level can matter for larger estates; inheritance tax hits certain heirs.

    6

    Compare two finalists

    Use the pair selector to line up Social Security, retirement-income, and estate/inheritance treatment.

Before you relocate for retirement taxes

Establish domicile carefully

A part-year move can leave you taxed by both states. Update driver’s license, voter registration, and return filing status.

Time large withdrawals

Roth conversions and large IRA withdrawals in a high-tax state before moving can lock in higher state tax.

Model multi-year cash flow

One year of income-tax savings may not offset higher housing, insurance, or healthcare costs.

Check senior property relief

Homestead exemptions, circuit breakers, and age-based property-tax freezes vary widely by locality.

Ask about local income tax

Cities and counties in some states add local wage or earned-income taxes not fully modeled here.

Plan for heirs

If you have a taxable estate, compare state estate exemptions and inheritance tax on non-spouse heirs.

Retirement income mixes that change the state ranking

Two retirees in the same state can face very different bills. Use these patterns when reading the rankings—not as a substitute for personal tax advice.

Mostly Social Security

State SS taxation matters most. Federal combined-income rules still apply everywhere.

Pension + IRA heavy

Full retirement exemptions and no-income-tax states usually win; high ordinary rates hurt more.

Large taxable estate

Low or no state estate tax can outweigh modest income-tax differences for heirs.

High home value

Effective property tax can erase income-tax savings in some no-income-tax destinations.

Roth-heavy portfolio

Qualified Roth withdrawals are often sheltered federally and in many states—confirm conformity.

Part-year relocation

Sourcing rules and domicile timing can split income between old and new states in the move year.

Retirement taxes by state FAQs

8 states still tax some Social Security for certain filers: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont. Most offer AGI- or age-based relief, so many retirees still owe $0 state tax on benefits.

Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming have no broad state wage income tax, so Social Security, pensions, and retirement-account withdrawals are not taxed as state income.

Besides no-income-tax states, Illinois, Iowa, Michigan, Mississippi, Pennsylvania generally exempt most qualified retirement distributions while still taxing wages.

Yes. Up to 85% of Social Security can be taxable federally based on combined income. State tax, if any, is separate.

Twelve states plus DC levy an estate tax. Five states levy an inheritance tax (Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania). Maryland has both.

Not necessarily. High property or sales taxes can erase income-tax savings. Use rankings as a starting point, then model your income mix, home value, and spending.

Rank #1 is the most favorable on this site's score of Social Security taxation, retirement-income taxation, and estate/inheritance indicators. Property and sales taxes are shown separately and do not drive the rank.

Some cities and counties add local income taxes not fully modeled here. Check your locality, especially in states like New York, Pennsylvania, Ohio, and Maryland.

Tax savings matter, but so do housing costs, healthcare access, family, climate, and insurance. Model multi-year cash flow before relocating.

Use this site's Social Security and RMD calculators for federal benefit and withdrawal estimates, then apply state rules from these profiles. For a sample household across popular destinations, see US retiree tax destinations.

If your combined income exceeds IRS thresholds, up to 50% or 85% of Social Security benefits can be taxable federally. Those thresholds are not inflation-indexed, so more retirees become federally taxable over time.

An estate tax is levied on the decedent's estate before assets pass to heirs. An inheritance tax is levied on the beneficiary, often with rates that depend on relationship to the decedent. Maryland is the only state with both.

Qualified Roth withdrawals are generally federal-tax-free. Most states follow federal treatment for qualified Roth distributions, but confirm your state's conformity rules—especially for nonqualified withdrawals.

States without income tax often rely more on property and sales taxes. A retiree with a paid-off home still faces annual property tax, and everyday spending faces sales tax—so model total cash flow, not income tax alone.

Compare before a permanent move, before large IRA conversions, and when coordinating Social Security claiming with state AGI thresholds that can turn benefits taxable.

Educational comparison only. Confirm current state return instructions, local taxes, and estate planning rules before relocating or filing.