13 States Where Retirees Pay Zero Taxes on Retirement Income

Planning your retirement location? Here’s a game-changer: 13 U.S. states don’t tax retirement income at all—meaning your Social Security, 401(k) withdrawals, IRAs, and pensions are completely tax-free.

The lucky 13: Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The breakdown:

• 9 of these states have zero state income tax across the board (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, New Hampshire)
• The other 4 (Illinois, Iowa, Mississippi, Pennsylvania) specifically exempted retirement income from taxation

Catch: You still owe federal taxes. How much of your Social Security gets taxed depends on your combined income:

• Single, under $25k combined income → 0% taxable
• Single, $25k-$34k → up to 50% taxable
• Single, over $34k → up to 85% taxable

Trump’s promise: During his campaign, he pledged to eliminate federal taxes on Social Security entirely—could be a major win for retirees.

Beyond the big 13: Another 28+ states offer partial tax breaks on Social Security or pension income, so even if you’re not in a tax-free state, you might still get relief somewhere.

Bottom line: Where you retire matters. A strategic move could save thousands annually in taxes.