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Home›Taxes›7 States That Do NOT Tax Retirement Income

7 States That Do NOT Tax Retirement Income

By Our Editorial Team  |  Published October 24, 2022

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

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Image By Christopher_Boswell From Envato Elements

South Dakota

If you’re fond of wide open spaces, walks through nature, and being able to reconnect with mother earth, then South Dakota may just be the state for your golden years. To add to the perks, they also do not have taxes on personal income, which means that all your retirement income (be it that comes from an IRA, pension, or 401(K)) will not be taxed. This makes this quaint state the perfect place where you can make the most of your retirement savings.

What’s more, there is also no estate or inheritance tax, so you do not have to worry about things like that either. Like other states that have no income tax, because if you are taking social security benefits as well, those are also not going to be taxed.

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18 responses to “7 States That Do NOT Tax Retirement Income”

  1. Darcy Buster says:
    January 21, 2023 at 6:05 am

    So much more needs to be considered when deciding where to retire. I have noticed a huge disparity in property taxes from state to state & sometimes towns or counties within the state. Maybe you’re not being taxed on retirement income but would pay a premium on property taxes & medical expenses etc. For example, Florida has no income tax but their property taxes are quite high as are condo dues if you’re living in an HOA. Do your research!

    Reply
    • robert says:
      February 4, 2025 at 7:54 pm

      excellent statement !

      Reply
  2. Jesse Tynes says:
    February 1, 2023 at 2:45 pm

    So, if the only income you’ve only received in 2022 was income for SNAP food services, must that be an actual income?

    Reply
  3. Jim says:
    February 1, 2023 at 4:16 pm

    This would be a good article if a person did not have to click through page after page. This all could have fit on one page.

    Reply
    • Jane Kane says:
      May 24, 2024 at 7:18 pm

      Agree with Jim

      Reply
      • Christy Holt says:
        August 25, 2024 at 7:50 pm

        These ads are a drag….

        Reply
    • Dawn Marie Overton says:
      April 23, 2026 at 4:33 pm

      Agreed

      Reply
  4. Pat Duskin says:
    February 1, 2023 at 5:37 pm

    Wow…Texas?

    Reply
    • Michael Wisley says:
      August 25, 2023 at 2:57 pm

      Very very high real estate taxes

      Reply
      • Jane Kane says:
        May 24, 2024 at 7:16 pm

        No if you’re 65 or older.

        Reply
  5. Larry r teague says:
    February 2, 2023 at 1:08 am

    thanks for the information it is very useful

    Reply
  6. Larry Hartke says:
    February 10, 2023 at 7:16 pm

    What about Kansas?

    Reply
  7. Sharon Lott says:
    February 16, 2023 at 1:34 pm

    I thought Florida was one of the states that didn’t tax seniors

    Reply
    • April Y Mimnaugh says:
      July 7, 2023 at 11:20 am

      Good to know.

      Reply
    • POW says:
      May 23, 2024 at 11:18 am

      Well you are wrong. Florida texes is high.

      Reply
  8. Maureen Raye says:
    May 27, 2024 at 5:21 pm

    I live in California and I do not pay taxes on my social security. Why wasn’t it included in this article?

    Reply
  9. Leslie Kalei Fong says:
    August 24, 2024 at 6:07 pm

    True, CA does not tax social security retirement benefits, but does tax pensions, 401s and IRAs as high as 13%. Also, CA taxes military retirement income. CA has very high real property taxes too. I lived in CA 22 years, but left in 2018 when I retired.

    Reply
  10. LynnC says:
    August 25, 2024 at 7:59 pm

    I live in Tennessee – we have no state tax on income, social security or otherwise?

    Reply

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