State taxes on retirement income for 2026
By Nicolas Straut
Key takeaways
- None of the 10 most searched states on this page taxes Social Security.
- Florida and Texas have no personal income tax, and Illinois exempts pensions and IRA withdrawals at any age.
- A retired couple with $30,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 private pension owes nothing in 4 of the 10 states and $2,490 in Massachusetts, the most on the list.
In this article
Key takeaways
- None of the 10 most searched states on this page taxes Social Security.
- Florida and Texas have no personal income tax, and Illinois exempts pensions and IRA withdrawals at any age.
- A retired couple with $30,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 private pension owes nothing in 4 of the 10 states and $2,490 in Massachusetts, the most on the list.
Most states don't tax Social Security, and none of the 10 on this page does. Where they differ is pensions and IRA withdrawals. Some tax every dollar, some exclude a set amount from a certain age, and some don't tax them at all.
The table below is built from each state's own tax agency. A linked state has its own page with the rules and what a retired household there pays.
Which states tax retirement income in 2026
The last column is the 2026 state income tax for one married couple, both 67, with $30,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 private pension.
| State | Social Security | Pensions | IRA and 401(k) | Couple's state tax |
|---|---|---|---|---|
| California | Not taxed1 | Taxed | Taxed | $138 |
| Florida | Not taxed2 | Not taxed | Not taxed | $0 |
| Texas | Not taxed3 | Not taxed | Not taxed | $0 |
| New York | Not taxed4 | Partly taxed | Partly taxed | $154 |
| Virginia | Not taxed5 | Taxed | Taxed | $622 |
| Ohio | Not taxed6 | Taxed | Taxed | $897 |
| Michigan | Not taxed7 | Partly taxed | Partly taxed | $0 |
| Massachusetts | Not taxed8 | Partly taxed | Taxed | $2,490 |
| Arizona | Not taxed9 | Partly taxed | Taxed | up to $1,395 |
| Illinois | Not taxed10 | Not taxed | Not taxed | $0 |
"Partly taxed" means the state excludes some of that income, by age or by type of pension. Each linked state's page says how much.
States that don't tax retirement income
Florida
Florida does not tax Social Security, because Florida has no personal income tax. The Florida Department of Revenue says there are no personal income tax filing requirements, so a retiree living on Social Security, a pension and IRA withdrawals files only a federal return.
Texas
Texas does not tax Social Security, because Texas has no personal income tax. Article 8, Section 24-a of the Texas Constitution prohibits a personal income tax. The legislature proposed the ban as H.J.R. 38 in 2019, for the November 5, 2019, election.
Illinois
Illinois subtracts pensions from qualified employer plans and government retirement plans, so they are not taxed. Illinois subtracts IRA and 401(k) withdrawals too, including amounts rolled over to a Roth IRA, with no age test.
States that tax pensions and IRA withdrawals
The other 7 states tax at least part of a pension and IRA withdrawals. Among those that leave the sample couple a bill, it runs from $138 in California to $2,490 in Massachusetts. In Michigan, the state's own retirement break brings the couple's bill to zero.
California
California taxes pensions and annuities the same way the federal return does, as ordinary income. The sample couple owes $138.
New York
New York exempts New York State, local government and federal pensions at any age. A private pension is taxed, less the $20,000 pension and annuity exclusion once you are 59½. The sample couple owes $154.
Virginia
Virginia taxes pensions as ordinary income, because income taxable on your federal return is taxable in Virginia. The sample couple owes $622.
Ohio
Ohio taxes pensions as ordinary income, then gives a retirement income credit of up to $200 per return. The sample couple owes $897.
Michigan
Michigan lets you subtract retirement and pension benefits up to an annual limit, and from 2026 the phase-in reaches up to 100% of eligible benefits. The sample couple owes nothing.
Massachusetts
Massachusetts taxes most private pensions. Pensions from a contributory U.S. government, Massachusetts or Massachusetts local government plan are exempt. The sample couple owes $2,490.
Arizona
Arizona taxes private pensions. You can subtract up to $2,500 of a U.S. government or Arizona state or local pension, and all military retirement pay. The sample couple owes up to $1,395.
How we built the table
Each rule comes from the state's own revenue department or legislature, read on October 27, 2026. The Sources list below cites each state's Social Security rule, and each linked state's page cites the rest. Where a state's guidance did not state a rule, we flag it rather than guess.
The couple's bill uses the same state tables as the Tweed Retirement Withdrawal Plan, plus each state's exemptions and credits. These 10 states are the ones people search for most, and more states will follow.
Plan your withdrawals with your state's tax included
State tax is one line in a bigger bill. The retirement withdrawal order guide shows how the order you spend accounts changes your federal tax, and the 2026 IRMAA brackets show when a large withdrawal raises Medicare premiums.
If you are still working out how much you need to retire, the free Tweed Retirement Calculator projects your savings. The Tweed Retirement Withdrawal Plan runs your state's tax year by year. This year's decisions are free, and the full plan costs $79.
This year is free
See your withdrawal order with your state's tax included
Frequently asked questions about state taxes on retirement income
Is Social Security taxed on my federal return if my state doesn't tax it?
Yes, the federal return can tax up to 85% of your benefits once a married couple's provisional income passes $44,000, wherever you live. A state exemption only removes the state layer.
Does the state I retire in or the state I worked in tax my pension?
Generally the state you live in when you receive the payment. California, for one, says in its own pension guide that it does not tax retirement income received by a nonresident, so a pension earned there isn't taxed by California once you move. Check your old state's guidance if you moved recently.
Sources
- https://www.ftb.ca.gov/forms/2024/2024-1005-publication.pdf
- https://floridarevenue.com/faq/Pages/FAQDetails.aspx?FAQID=1466
- https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8/CN.8.24-a.htm
- https://www.tax.ny.gov/pit/file/information_for_seniors.htm
- https://www.tax.virginia.gov/subtractions
- https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/forms/ohio_individual/individual/2025/it1040-booklet.pdf
- https://www.michigan.gov/en/taxes/business-taxes/withholding/withholding-for-pension-administrators
- https://www.mass.gov/info-details/massachusetts-tax-information-for-seniors-and-retirees
- https://azdor.gov/sites/default/files/document/FORMS_INDIVIDUAL_2025_140i.pdf
- https://tax.illinois.gov/research/publications/pubs/retirement-income.html
This page covers state income tax on retirement income for full-year residents in 2026. It leaves out local taxes and property tax. The sample couple is an illustration, not your return.
Tweed provides educational information, not tax or financial advice. Nicolas Straut is a personal finance writer, not a financial advisor or tax preparer.
Personal finance writer, former Forbes contributor and This Week in Fintech writer. He isn't a financial advisor or a CPA.
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