Jace Lamonica
Across the U.S., retirement income is taxed in many ways, but some states go the extra mile to ensure it stays untouched. These 10 states offer tax relief that protects Social Security, pensions, IRAs, and more. Each location has unique benefits, with hidden credits that make them worth exploring.
Alaska
Free from state income and sales tax, Alaska leaves your retirement untouched. Seniors over 65 can also claim a property tax exemption worth up to $150,000. Combine that with an annual oil revenue dividend, and your money keeps working long after you stop.
Florida
Florida attracts over 300,000 new retirees yearly, and it’s not just the sunshine that draws them in; it’s the savings. Florida gives retirement income a complete pass—no state tax on Social Security, pensions, or withdrawals exists. It even cuts property taxes by thousands.
Nevada
Your 401(k), IRA, and Social Security stay secure here. Nevada collects no state income tax and doesn’t dip into estate or inheritance funds. Despite higher sales tax, the overall impact on retirees is minimal. Retain more, spend smarter, retire better.
South Dakota
Known for financial simplicity, South Dakota won’t tax your retirement income a penny. There’s no inheritance tax, either. Ranked among the best states for tax climate by the Tax Foundation, it’s a haven for preserving long-term retirement stability.
Texas
This state draws retirees seeking low tax burdens. Texas taxes neither retirement income nor Social Security. Though property taxes run high, a ceiling for optional school taxes freezes rates once you hit 65. For many, that trade-off makes perfect financial sense.
Wyoming
Low property taxes, no state income tax, and zero inheritance tax keep more money in your accounts. Wyoming is among only a few states that earned top marks in all three categories. It’s a stronghold for retirees who prioritize capital protection.
Georgia
Georgia offers a retirement income exclusion of up to $65,000 per person from age 65 or $130,000 for couples. Social Security is tax-free, and it even provides a practical landing spot for those balancing tax strategy with mild winters and metro access.
Tennessee
After eliminating the Hall Tax in 2021, Tennessee stopped taxing interest or dividend income. Social Security and retirement accounts remain off the state’s radar. For retirees wanting predictable policy and growth potential, this is an ideal environment.
Washington
Social Security and retirement distributions are not subject to state-level deductions. While a limited capital gains tax affects only a fraction of residents, it doesn’t touch typical retirement plans. That balance makes Washington an unexpectedly viable option for retirees.
Iowa
As of 2023, Iowa stopped taxing retirement income for residents over 55. That includes income from pensions, 401(k)s, and IRAs. This quiet Midwestern change reshapes financial planning, especially for those with generational roots who want to retire near family.
