10 States Reconsidering Taxes on Pension Income

By Our Editorial Team | Published September 30, 2026

Expert Verified

Our editorial team verifies all financial and lifestyle information for accuracy and relevance to senior living.

A senior man sits at a kitchen table with a dog on his lap, writing in a ledger beside a laptop and tax booklet. — After phasing out Social Security taxes, Nebraska lawmakers are debating expanded tax relief for private and public pension annuities.

10. Nebraska: Following Social Security Relief with Pension Overhauls

Nebraska successfully phased out state income taxes on Social Security benefits ahead of schedule. Encouraged by this milestone, legislative leaders are debating expanded relief for private and public pension annuities.

These proposals aim to keep older Nebraskans from migrating to states with zero income tax. Several proposals seek to match the tax exemptions already granted to military retirees.

As state revenue allows, lawmakers plan to broaden general retirement exemptions. Keep an eye on legislative floor debates if you collect a pension in Nebraska.