Which state does not tax retirement benefits?

Pennsylvania has a 3.07 percent flat tax and doesn’t tax retirement plans or Social Security benefits. Iowa, which has a maximum 5.7 percent income tax, doesn’t tax retirement plans or Social Security payouts for people 55 and older. What about everyone else? Most states carve out some exemptions for retirement income.

Which states have no income tax?

Eight states have no income tax whatsoever: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming. That means retirement income, including Social Security retirement benefits, remains untouched by the state taxman. A ninth state, New Hampshire, also has no income tax, so it doesn’t tax retirement distributions.

Which states do not tax pensions?

States that do not tax pensions include the seven states that have no income tax — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming — as well as New Hampshire and Washington. Additionally, five states — Alabama, Hawaii, Illinois, Mississippi, and Pennsylvania — exclude pension income from state taxation.