#1 Nevada
Sample SS + RMD: $0 modeled state income tax
- Social Security
- No state income tax
- Pensions / IRA
- No state income tax
- Property tax*
- $2,000
- Sales tax (avg)
- 8.24%
No state income tax; West Coast-adjacent.
Nevada retirement tax profileAll compare hubs
🏖️2026 · SS + RMD vignette
US retiree tax destinations 2026
Same sample household — $30,000 Social Security plus ~$30,189 traditional IRA RMD — ranked across 15 popular destinations. Built on our retirement-taxes engine and paired with Social Security and RMD calculators.
By Sammy S. · Founder · AuthorUpdated for 2026
Nevada
Top destination
Colorado
Contrast destination
9
$0 state tax on sample
$30,189
Sample IRA RMD
Key finding
At-a-glance summary
Sample 2026 single retiree (age 73): $30,000 Social Security + ~$30,189 RMD from an $800,000 traditional IRA. Florida (#3 here): $0 modeled state income tax on that mix. California (#14): Social Security still untaxed by the state, but the RMD is taxed as ordinary California income. Federal tax on up to 85% of benefits can still apply in both states (IRS Topic 423 / Pub 915).
Updated 2026-08-07 · Tax year 2026 · Source: paychecktaxcalculator.net/us-retiree-tax-destinations
Pair with Social Security & RMD tools
This page ranks destinations on state tax treatment. Estimate your benefit and required withdrawal first, then map the mix to a state profile.
Sample household
Fixed assumptions so every destination is compared on the same income mix — not a personalized tax return.
Filing / age
Single · age 73
Social Security
$30,000/yr
Traditional IRA RMD
~$30,189
on $800,000 ÷ 26.5
Federal combined income
~$45,189
→ up to 85% of SS may be federally taxable
Federal taxes still apply everywhere
State of residence does not change IRS combined-income rules for Social Security (Topic 423) or federal taxation of traditional IRA/401(k) RMDs. A Florida or Texas move can eliminate state income tax on this mix — not federal tax. Estate tax at the federal level still uses the ~$15M exemption framework for 2026.
Key takeaways
- 9 of 15 curated destinations model $0 state income tax on this age-73 sample Social Security + traditional RMD mix (including Georgia’s exclusion and Michigan’s deduction cap).
- Nationally, eight states still tax some Social Security for certain filers (Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont — AARP, Apr 2026). On this age-65+ vignette, Colorado’s sample SS is fully deductible.
- Federal rules still matter: this sample’s combined income (~$45,189) puts up to 85% of Social Security in play federally (IRS Topic 423 / Pub 915), regardless of state.
- Property and sales taxes can offset income-tax wins — modeled property tax on a $400,000 home ranges from ~$1,920 to ~$7,520 across this list.
- Pair this ranking with the Social Security benefits calculator and RMD calculator, then open each state’s retirement-tax profile for exclusions and estate rules.
Destinations ranked (2026)
Ordered by the same retiree-friendliness score as Retirement taxes by state. Sample SS / RMD columns show state treatment of the fixed vignette — not a dollar tax bill.
| # | Destination | Sample SS | Sample RMD | Profile |
|---|---|---|---|---|
| 1 | Nevada Sample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 2 |  TennesseeSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 3 |  FloridaSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 4 |  TexasSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 5 |  MichiganSample SS + RMD: $0 state tax (under MI deduction cap) | Not taxed (state) | Not taxed (state) | Open |
| 6 |  WashingtonSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 7 |  PennsylvaniaSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 8 |  South CarolinaSample SS untaxed; RMD may be partly sheltered | Not taxed (state) | Partial / exclusion | Open |
| 9 |  GeorgiaSample SS + RMD: $0 state tax (within GA exclusion) | Not taxed (state) | Not taxed (state) | Open |
| 10 |  IllinoisSample SS + RMD: $0 modeled state income tax | Not taxed (state) | Not taxed (state) | Open |
| 11 |  ArizonaSample SS untaxed; traditional RMD taxed as ordinary income | Not taxed (state) | Taxed as ordinary | Open |
| 12 |  DelawareSample SS untaxed; traditional RMD taxed as ordinary income | Not taxed (state) | Taxed as ordinary | Open |
| 13 |  North CarolinaSample SS untaxed; traditional RMD taxed as ordinary income | Not taxed (state) | Taxed as ordinary | Open |
| 14 |  CaliforniaSample SS untaxed; traditional RMD taxed as ordinary income | Not taxed (state) | Taxed as ordinary | Open |
| 15 |  ColoradoSample SS untaxed at 65+; other retirement income may be taxed | Not taxed (state) | Partial / exclusion | Open |
*Illustrative annual property tax on a $400,000 home using statewide effective rates — not a bill estimate. Homestead and senior relief vary.
#2 Tennessee
Sample SS + RMD: $0 modeled state income tax
- Social Security
- No state income tax
- Pensions / IRA
- No state income tax
- Property tax*
- $2,080
- Sales tax (avg)
- 9.61%
No wage income tax; lower housing than many Sun Belt peers.
Tennessee retirement tax profile#3 Florida
Sample SS + RMD: $0 modeled state income tax
- Social Security
- No state income tax
- Pensions / IRA
- No state income tax
- Property tax*
- $3,120
- Sales tax (avg)
- 6.98%
Classic Sun Belt destination; no state income tax.
Florida retirement tax profile#4 Texas
Sample SS + RMD: $0 modeled state income tax
- Social Security
- No state income tax
- Pensions / IRA
- No state income tax
- Property tax*
- $5,600
- Sales tax (avg)
- 8.2%
No state income tax; large metro healthcare systems.
Texas retirement tax profile#5 Michigan
Sample SS + RMD: $0 state tax (under MI deduction cap)
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income exempt
- Property tax*
- $4,760
- Sales tax (avg)
- 6%
2026 PA 4 phase-in at 100% — deduct qualifying retirement income up to ~$67,610 single.
2026 Michigan deduction caps at $67,610 single / $135,220 joint (Michigan ORS PA 4 FAQ). Sample RMD is under the single cap.
Michigan retirement tax profile#6 Washington
Sample SS + RMD: $0 modeled state income tax
- Social Security
- No state income tax
- Pensions / IRA
- No state income tax
- Property tax*
- $3,000
- Sales tax (avg)
- 9.57%
No wage income tax; estate tax still applies.
No wage income tax on the sample mix; Washington still has a state estate tax.
Washington retirement tax profile#7 Pennsylvania
Sample SS + RMD: $0 modeled state income tax
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income exempt
- Property tax*
- $5,040
- Sales tax (avg)
- 6.34%
Full retirement-income exemption after 59½ — inheritance tax caveat.
PA personal income tax generally exempts retirement distributions after age 59½ — but Pennsylvania still levies an inheritance tax.
Pennsylvania retirement tax profile#8 South Carolina
Sample SS untaxed; RMD may be partly sheltered
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Partial retirement exclusions
- Property tax*
- $1,960
- Sales tax (avg)
- 7.49%
Coastal & inland retiree communities; SS exempt; modest retirement deduction.
South Carolina’s retirement deduction is modest (~$10,000); most of a $30,189 RMD remains taxable — confirm SC1040.
South Carolina retirement tax profile#9 Georgia
Sample SS + RMD: $0 state tax (within GA exclusion)
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Partial retirement exclusions
- Property tax*
- $3,160
- Sales tax (avg)
- 7.56%
Up to $65k retirement-income exclusion at age 65+ (per person).
Age 73: sample RMD (~$30,189) fits within Georgia’s ~$65,000 retirement-income exclusion (SS is separately exempt and does not consume the cap).
Georgia retirement tax profile#10 Illinois
Sample SS + RMD: $0 modeled state income tax
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income exempt
- Property tax*
- $7,520
- Sales tax (avg)
- 8.98%
Exempts SS and most retirement distributions — estate tax caveat.
Illinois generally exempts retirement distributions from income tax but levies a state estate tax.
Illinois retirement tax profile#11 Arizona
Sample SS untaxed; traditional RMD taxed as ordinary income
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income taxed
- Property tax*
- $1,920
- Sales tax (avg)
- 8.54%
Desert retirement hubs; SS exempt, other income taxed.
Arizona retirement tax profile#12 Delaware
Sample SS untaxed; traditional RMD taxed as ordinary income
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income taxed
- Property tax*
- $2,160
- Sales tax (avg)
- 0%
Small-state living costs; SS exempt.
Delaware retirement tax profile#13 North Carolina
Sample SS untaxed; traditional RMD taxed as ordinary income
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income taxed
- Property tax*
- $2,640
- Sales tax (avg)
- 7.1%
Research Triangle / mountain towns; SS exempt, flat tax on other income.
North Carolina retirement tax profile#14 California
Sample SS untaxed; traditional RMD taxed as ordinary income
- Social Security
- SS exempt from state tax
- Pensions / IRA
- Retirement income taxed
- Property tax*
- $2,800
- Sales tax (avg)
- 9.03%
Contrast destination — SS exempt but high tax on other retirement income.
California retirement tax profile#15 Colorado
Sample SS untaxed at 65+; other retirement income may be taxed
- Social Security
- SS partially taxed
- Pensions / IRA
- Partial retirement exclusions
- Property tax*
- $2,000
- Sales tax (avg)
- 7.89%
Mountain lifestyle; age 65+ deducts SS fully — younger/higher-AGI filers may still owe.
Age 65+: sample Social Security is fully deductible in Colorado (AARP). Ages 55–64 still face AGI tests; other retirement income may still be taxed.
Colorado retirement tax profilePopular corridors
Florida vs California
Florida has no state income tax on the sample SS + RMD mix. California exempts Social Security but taxes traditional IRA/401(k) withdrawals at progressive rates (top ordinary rate 13.3% plus MHSA over $1M). Property-tax estimates on a $400,000 home: ~$3,120 (Florida) vs ~$2,800 (California).
Texas vs New York
Texas taxes neither Social Security nor RMDs at the state level. New York exempts Social Security and many government pensions, but private pensions get a limited exclusion and IRA/401(k) withdrawals are generally taxed — plus a state estate tax.
Georgia vs California
At age 73, Georgia’s ~$65,000 retirement-income exclusion covers the sample RMD, so both SS and the RMD model at $0 state income tax. California still taxes the traditional RMD in full as ordinary income.
Pennsylvania vs Illinois
Both generally shelter Social Security and qualified retirement distributions from state income tax — rare among income-tax states. Pennsylvania levies an inheritance tax; Illinois levies an estate tax (exemption near $4M).
Washington vs Colorado
Washington has no wage income tax (sample SS + RMD: $0 state income tax) but still has an estate tax. Colorado fully deducts Social Security at age 65+ (AARP) but can still tax other retirement income; younger/higher-AGI Coloradans may still owe state tax on benefits.
Compare two destinations side by side
Pick any pair from the curated list for a head-to-head page: Social Security treatment, required withdrawals, death taxes, and modeled property tax on the same home value.
Compare any two destinations
15 curated destinations, ranked on benefit and withdrawal treatment.
How federal Social Security tax works (every state)
IRS Topic 423 and Publication 915 decide whether 0%, up to 50%, or up to 85% of your benefits are federally taxable. The test uses combined income: AGI + nontaxable interest + one-half of Social Security (AARP and IRS call this provisional / combined income).
Those base amounts are not inflation-indexed. As RMDs, pensions, and investment income rise over a career, more retirees cross the thresholds even if benefits alone look modest.
For this sample: RMD ~$30,189 + half of $30,000 SS = ~$45,189 combined income — above the $34,000 single threshold, so up to 85% of benefits may be federally taxable in Florida and California alike.
You can request voluntary withholding from benefits with Form W-4V, or make estimated payments (Pub 505). Moving states does not change this federal worksheet.
Single — up to 50% taxable
Combined income > $25,000
Single — up to 85% taxable
Combined income > $34,000
MFJ — up to 50% taxable
Combined income > $32,000
MFJ — up to 85% taxable
Combined income > $44,000
Sources: IRS Topic 423, Pub 915.
How required minimum distributions (RMDs) work
You generally cannot leave traditional IRA / 401(k) balances untouched forever. The IRS requires annual withdrawals once you reach RMD age (IRS Retirement topics — RMDs; Pub 590-B).
Under SECURE 2.0, RMD age is generally 73 if you were born 1951–1959, or 75 if born 1960 or later. Roth IRAs have no lifetime RMDs for the owner; beneficiaries still face distribution rules.
This page’s sample uses the Uniform Lifetime Table: $800,000 ÷ 26.5 ≈ $30,189 at age 73.
- First IRA RMD is generally due by April 1 of the year after you reach RMD age; later RMDs are due by December 31 each year.
- Missing an RMD can trigger a 25% excise tax on the shortfall (reduced to 10% if corrected timely) — Form 5329.
- Traditional RMDs increase AGI, which can raise the taxable share of Social Security and Medicare IRMAA surcharges two years later.
- State tax on the RMD depends on residence: no-income-tax states, full exemptions (e.g. PA after 59½, IL), or exclusions/caps (GA, MI, SC).
The eight states that still tax some Social Security
Per AARP (updated April 2026), most states exempt Social Security, but eight still tax benefits for some residents. West Virginia completed its phase-out; Kansas, Missouri, and Nebraska stopped taxing benefits in 2024. Rules change — confirm your Form instructions.
Colorado
Age 65+: full SS deduction. Ages 55–64: full deduction below AGI ~$75k/$95k; otherwise limited retirement deduction.
Connecticut
Full exemption below AGI $75k single / $100k joint; above that, at most 25% of benefits taxable.
Minnesota
Full relief at AGI up to ~$86,410 single / $110,780 joint (2026, indexed); partial then full taxation above.
Montana
Uses a state worksheet similar to federal thresholds; taxable amount can differ from federal.
New Mexico
Full deduction below AGI $100k single / $150k joint; federally taxable benefits included above.
Rhode Island
Exempt at full retirement age below annually indexed AGI limits (~$107k / $133.75k in 2025 — confirm 2026).
Utah
Follows federal taxable amount but offers a credit that phases out above MAGI ~$54k single / $90k joint.
Vermont
Full exemption below AGI $55k single / $70k joint; phase-out then full taxation above.
Vignette caveats (why “$0 state tax” is not universal)
Colorado at age 65+ vs younger movers
This sample is age 73, so Colorado’s Social Security column shows not taxed. A 60-year-old with the same income mix can still owe Colorado tax on benefits above AGI tests.
Georgia exclusion is generous — until it isn’t
Age 65+ can exclude up to $65,000 of retirement income per person. Our ~$30,189 RMD fits. A larger IRA (or interest/dividends/rent stacked into the exclusion) can leave taxable income.
Michigan has a hard dollar cap
PA 4 of 2023 reaches 100% in 2026, but only up to $67,610 single / $135,220 joint. Larger RMDs are taxable above the cap (Michigan ORS FAQ / RAB 2026-1).
South Carolina’s deduction is small
A ~$10,000 retirement deduction leaves most of a $30,189 RMD taxable even though Social Security is exempt.
Death taxes are separate from income tax
Pennsylvania (inheritance), Illinois (estate), and Washington (estate) can look income-tax friendly and still tax wealth transfers. Federal estate exemption is about $15 million per person in 2026.
Limitations
- State income-tax treatment only for the fixed sample — not a full Form 1040 / state return with itemized deductions, credits, or local taxes.
- Property-tax column uses statewide effective rates on a $400,000 home; homestead, senior, and locality relief vary widely.
- Sales tax, insurance, healthcare, and housing costs are not ranked here — see property-tax, cost-of-living, and total-tax-burden hubs.
- Medicare IRMAA, NIIT, and capital-gains harvesting interactions are educational only.
- Exclusion dollar amounts (GA, MI, SC, CO AGI tests) change with legislation and CPI — confirm the current state booklet before relocating.
How we build the ranking
- 1
Fix a sample retiree income mix
Single filer, age 73, $30,000 annual Social Security plus a traditional IRA ending balance of $800,000.
- 2
Compute the IRS Uniform Lifetime RMD
RMD = prior-year-end balance ÷ Uniform Lifetime factor (IRS Pub 590-B / RMD topics). At age 73 the factor is 26.5, so the sample RMD is about $30,189 (same engine as /rmd-calculator).
- 3
Apply age-aware state Social Security and retirement-income rules
Reuse retirement-taxes-by-state classifications, then adjust the vignette for published exclusions (Colorado age-65+ SS deduction; Georgia $65k exclusion; Michigan $67,610 single cap).
- 4
Rank curated destinations
Order by the same retiree-friendliness score as the full 50-state+DC hub (Social Security + retirement-income + estate/inheritance). Equal scores break ties with lower illustrative property tax, then state name. Sales rates are shown separately.
- 5
Link federal tools
Estimate your own benefit with the Social Security calculator and your own RMD with the RMD calculator, then re-check state treatment on the matching retirement-taxes profile.
Who this helps
Soon-to-be retirees comparing Sun Belt moves
Use the destination table + Florida/Texas/Arizona/Nevada rows before locking a permanent residence change.
Retirees entering RMD age (73 or 75)
Run the RMD calculator on your Dec 31 balance, then see which destinations tax that withdrawal at the state level.
Social Security claimants coordinating AGI
Federal combined-income thresholds are not inflation-indexed. State AGI thresholds (CO, CT, MN, etc.) can also flip SS taxability — model both.
Personal-finance researchers
Use the sample household and ranked table with year + methodology. Link the full retirement-taxes-by-state hub for all 50 states + DC.
Planning tips
Federal SS tax ≠ state SS tax
Moving to Florida does not erase federal taxation of Social Security. It can erase state tax on benefits and RMDs.
RMDs raise combined income
Starting RMDs can push more of your Social Security into the federal taxable share. Roth conversions before RMD age are a common planning lever — model federal brackets carefully.
Watch death taxes in “income-friendly” states
Pennsylvania and Illinois can look great on income tax yet still levy inheritance or estate tax. Washington has no wage income tax but keeps an estate tax.
Property tax is the silent budget line
No-income-tax states often rely more on property and sales taxes. Use the property-tax estimate column as a starting point, then check homestead/senior relief.
Confirm current Form instructions
Exclusions (Georgia, Michigan, Colorado, etc.) change with legislation. Always confirm the current state income-tax booklet before moving or converting.
Age matters for Colorado and Georgia
Colorado’s full SS deduction starts at 65. Georgia’s exclusion jumps from $35k (ages 62–64) to $65k (65+). Re-run the vignette at your actual age.
Glossary
- Social Security state tax
- Whether the state includes any Social Security benefits in taxable income. Most states exempt benefits; eight still tax some benefits above AGI/age thresholds in 2026 (AARP).
- RMD
- Required minimum distribution from a traditional IRA/401(k). Computed with the IRS Uniform Lifetime Table (Pub 590-B). Roth IRAs have no lifetime RMDs for the owner.
- Combined income (federal)
- AGI + nontaxable interest + ½ of Social Security. Used on the IRS worksheet to decide whether 0%, up to 50%, or up to 85% of benefits are federally taxable (Topic 423 / Pub 915).
- Retiree-friendliness rank
- This site’s score of Social Security taxation, retirement-income taxation, and estate/inheritance indicators. Lower score / rank #1 = more favorable on those axes. Property and sales taxes are benchmarks only.
- Estate vs inheritance tax
- Estate tax hits the decedent’s estate; inheritance tax hits certain heirs. Maryland has both. Federal estate exemption is about $15,000,000 in 2026.
- Retirement-income exclusion
- A state subtraction that shelters pensions, IRA/401(k) withdrawals, and sometimes investment income up to a dollar cap (e.g. Georgia $65,000 at age 65+).
FAQ
On this curated list of 15 popular destinations, #1 is Nevada (retiree-friendliness rank from our full state model). Destinations with $0 modeled state income tax on the age-73 sample SS + RMD mix include Nevada, Tennessee, Florida, Texas, Michigan, Washington, Pennsylvania, Georgia, Illinois. For all 50 states + DC, use Retirement taxes by state.
Single filer, age 73, $30,000 Social Security and a $800,000 traditional IRA. The IRS Uniform Lifetime RMD is about $30,189 (factor 26.5). We then apply each state’s Social Security and retirement-income rules, including age-based exclusions.
Florida has no state income tax, so Social Security and traditional IRA RMDs are not taxed as state income. Federal income tax on taxable Social Security and RMDs still applies.
California exempts Social Security from state tax but taxes traditional IRA/401(k) withdrawals (including RMDs) as ordinary income at progressive rates. That is why California ranks near the bottom of this destination list (#14).
No — at age 73, Colorado fully deducts Social Security (AARP). Colorado still appears last in the structural ranking because younger/higher-AGI filers can owe state tax on benefits and other retirement income remains taxable. Other retirement income for this sample is labeled partial.
Georgia lets age-65+ residents exclude up to about $65,000 of retirement income per person. Our ~$30,189 RMD fits inside that exclusion. Larger withdrawals or other income stacked into the exclusion can leave taxable income.
No. For 2026 the PA 4 phase-in reaches 100%, but only up to $67,610 single / $135,220 joint (Michigan ORS FAQ). This sample’s RMD (~$30,189) is under the single cap, so Michigan shows $0 state tax on the vignette.
Retirement taxes by state covers all 50 states + DC with profiles and pair pages. This destinations hub curates popular retirement moves, adds a Social Security + RMD sample household with age/exclusion awareness, and deep-links the Social Security and RMD calculators.
Under SECURE 2.0, RMDs generally begin at age 73 if you were born 1951–1959, or age 75 if born 1960 or later (IRS RMD topics). Use the RMD calculator with your birth year and prior Dec 31 balance.
No. Federal taxability depends on combined income under IRS Topic 423 / Pub 915, not your state of residence. State tax is a separate layer that many destinations set to $0 on benefits.
For this vignette, combined income is about $45,189 (RMD + half of benefits). Above $34,000 single, up to 85% of benefits may be federally taxable. Run your real numbers on the IRS Publication 915 worksheet.
Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont (AARP, April 2026). On this curated age-73 list, only Colorado is structurally a partial-SS state — and the sample SS column shows not taxed because of the age-65+ deduction.
Both generally exempt Social Security and most qualified retirement distributions from state income tax, which is why they appear mid/high on income-tax grounds. Pennsylvania has an inheritance tax; Illinois has an estate tax. Model death taxes if wealth transfer matters.
Rank #1 (Nevada) is most favorable on this site’s Social Security / retirement-income / estate score among the curated list — not a lifestyle recommendation. Colorado ranks last structurally because it can still tax Social Security for some filers and taxes other retirement income. California ranks near the bottom (#14) because it taxes traditional retirement withdrawals heavily. Housing, healthcare, and family still dominate most moves.
Use this site’s Social Security calculator for benefit estimates and the RMD calculator for required withdrawals, then open the matching state profile under Retirement taxes by state.