Which States Tax Roth Conversions in 2026? (Full List)

When you convert a traditional IRA or 401(k) to a Roth, the converted amount is ordinary income on your federal return. But whether your state also taxes that conversion depends entirely on where you live — and the difference can be thousands of dollars on a single conversion.

This is the short version: nine states have no income tax at all, so they never tax a Roth conversion. Three states with an income tax also leave it untaxed at any age: Illinois, Pennsylvania and Mississippi. Kentucky, Oklahoma and South Carolina exclude part of it at any age, Connecticut excludes it below an income limit, and eleven more states exclude part or all of it from a certain age. Everywhere else the conversion is taxed as ordinary income.

Below is the full breakdown for 2026, plus the three cases that trip people up.

States That Don't Tax Roth Conversions At All

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These nine states levy no tax on wage or retirement income, so a Roth conversion costs you $0 in state tax:

• Alaska
• Florida
• Nevada
• New Hampshire (its interest-and-dividends tax was repealed for taxable periods beginning after December 31, 2024, and never applied to conversions)
• South Dakota
• Tennessee
• Texas
• Washington (a 7% tax applies to large capital gains only — not to Roth conversions)
• Wyoming

If you're planning a large multi-year conversion ladder, relocating to one of these states first is the single biggest state-tax lever available.

Run your own numbers in the free calculator →

The Illinois Exception

Illinois has a flat 4.95% income tax — but it does not tax most retirement income, and that includes the taxable portion of a Roth conversion (Illinois Publication 120: IRA distributions "including amounts rolled over to a Roth IRA"). The federally taxable conversion amount flows onto Form IL-1040 and is then subtracted on Line 5 as exempt retirement income.

The practical result: a retiree in Illinois converting $100,000 pays the same state tax on that conversion as a retiree in Florida — zero — even though Illinois is not a "no income tax" state.

Two More States That Leave the Conversion Untaxed

• Pennsylvania (3.07% flat): a traditional-to-Roth conversion moved in full, trustee to trustee or redeposited within 60 days, is not taxable at any age (2025 PA-40 instructions: "Roth IRA Rollover You do not have to pay PA tax"). Money withheld for federal tax and not deposited into the Roth is taxable.
• Mississippi: retirement income from qualified plans is exempt once the plan's requirements are met (Mississippi DOR income tax FAQ). The QuantCalc engine treats a conversion as exempt at any age; the Department of Revenue publishes no conversion-specific rule, so confirm it with a preparer before a large conversion.

States That Exclude Part of It, or Only From an Age

• Kentucky: conversion income counts toward the pension income exclusion, up to $31,110 per taxpayer, at any age (Form 740 instructions). A $30,000 conversion with no other pension income is fully excluded.
• Georgia: from age 62 the retirement income exclusion ($35,000 at 62-64, $65,000 at 65 or older) covers IRA income, conversions included (Georgia DOR, Retirement Income Exclusion); below 62 the conversion is taxed at the 4.99% flat rate.
• Iowa: from age 55 Roth conversion income is retirement income Iowa excludes (Iowa DOR retirement income guidance).
• New Jersey: from age 62 the conversion shares the pension exclusion, which applies only while total income is at most $150,000 (NJ Division of Taxation, retirement income exclusions).
• New York: from age 59½ up to $20,000 of conversion income is excluded; the rest is taxed (NY TSB-M-98(7)I).
• Michigan: after 59½ a conversion counts against the retirement subtraction, whose size depends on your birth year (2025 MI-1040 instructions).
• Oklahoma: conversion income draws the retirement income exclusion, up to $10,000 per person, at any age (2025 Form 511 instructions). The instructions do not name conversions; the QuantCalc engine reads a conversion as the IRA distribution it is federally.
• South Carolina: the retirement income deduction covers a conversion: up to $3,000 below 65 and $10,000 from 65 (SC Revenue Ruling #22-11). South Carolina publishes no conversion-specific rule; this is the QuantCalc engine's reading of the deduction's definition.
• Connecticut: a conversion is part of the IRA line, fully subtracted while federal AGI is under $75,000 ($100,000 joint) at any age, and a stepped-down share up to $100,000 ($150,000 joint) (2025 CT-1040 instructions).
• Colorado: from age 55 a conversion (a traditional IRA distribution on Form 1040 line 4b) draws the pension and annuity subtraction, up to $20,000 at 55-64 and $24,000 from 65 (Colorado DOR, Social Security, Pensions and Annuities). The guidance does not name conversions; this is the QuantCalc engine's reading of its list of qualifying IRA distributions.
• Arkansas: after 59½ the first $6,000 of traditional IRA distributions per person is exempt, and a conversion is one (2025 AR1000F instructions). The instructions do not name conversions; this is the QuantCalc engine's reading.
• Delaware: from age 60 a conversion counts toward the $12,500 pension and retirement income exclusion (2025 PIT-RES instructions). Delaware does not name conversions; this is the QuantCalc engine's reading of eligible retirement income.
• Alabama: from age 65 a conversion draws the $6,000 retirement income exclusion (2025 Schedule RS).
• Louisiana: from age 65 a conversion draws the annual retirement income exemption (2025 IT-540 instructions), $12,324 per person for 2026 (LDR RIB 26-019).
• Wisconsin: from age 67 conversion income is eligible for the retirement income subtraction, up to $24,000 per person (Wisconsin DOR, Tax Practitioner Q&A, fall 2025).

Every Other State Taxes the Conversion as Ordinary Income

In the remaining states, and in the states above below their age thresholds, your Roth conversion stacks on top of your other income and is taxed at your marginal rate. What the QuantCalc state engine gives for a single filer aged 45 with $50,000 of wages who converts $30,000 (the tax with the conversion minus the tax without it):

• California: $2,155.45 (the conversion spans the 6%, 8% and 9.3% brackets of the 2025 rate schedule, which the engine applies to 2026).
• Georgia (4.99% flat for 2026, Georgia DOR 2026 employer's tax guide): $1,497.00.
• New York: $1,620.00 (from 59½, with the $20,000 exclusion: $540.00).
• New Jersey: $1,691.30 (from 62, within the pension exclusion: $0).
• Oregon: $2,625.00. Minnesota: $2,040.00. Hawaii: $2,251.42.

Want the exact number for your state, including its retirement-income rules and a 30-year Monte Carlo tax projection? Each state has a dedicated page — for example Georgia, California, Illinois, New York, Texas, and Florida. All 51 jurisdictions are covered.

The Hidden Cost: The ACA Cliff Stacks on Top

Here's what most state-tax comparisons miss. If you're an early retiree on an ACA marketplace plan, the conversion doesn't just trigger state and federal income tax — it raises your Modified Adjusted Gross Income (MAGI), and crossing 400% of the federal poverty level eliminates your premium tax credit entirely.

For 2026 the 400% FPL cliff is $62,600 for a single filer and $84,600 for a couple. A conversion that pushes you one dollar over can cost $12,000+ in clawed-back subsidies — often more than the state tax itself. We cover this in depth in the ACA subsidy cliff guide.

The takeaway: model state tax, federal tax, and the ACA cliff together, not separately. The QuantCalc ACA calculator covers the ACA cliff for a given MAGI; the paid Roth Conversion Planner plans the conversion against federal tax, state tax and the cliff together.

Frequently Asked Questions

Which states do not tax Roth conversions in 2026?

Nine states have no income tax and therefore never tax a Roth conversion: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Three states with an income tax also leave it untaxed at any age: Illinois (retirement income subtraction), Pennsylvania (a conversion moved in full) and Mississippi (qualified retirement income). Kentucky (up to $31,110 per person), Oklahoma (up to $10,000) and South Carolina (up to $3,000 below 65, $10,000 from 65) exclude part of it at any age, Connecticut excludes it below an income limit, and Colorado (55+), Iowa (55+), Arkansas, Michigan and New York (59½+), Delaware (60+), Georgia (62+), New Jersey (62+, income up to $150,000), Alabama and Louisiana (65+) and Wisconsin (67+) exclude part or all of it from an age.

Does Illinois tax Roth conversions?

No. Although Illinois levies a flat 4.95% income tax, it exempts most retirement income — including the federally taxable amount of a traditional-to-Roth conversion. The amount is added back on Form IL-1040 and then subtracted on Line 5, leaving no Illinois tax on the conversion.

How much does a Roth conversion cost in state tax?

It depends on your state's marginal rate and its retirement-income rules. In a no-tax state, Illinois, Pennsylvania or Mississippi it's $0. For a single filer aged 45 with $50,000 of wages, a $30,000 conversion costs $1,497.00 in Georgia (4.99% flat) and $2,155.45 in California (its 6%, 8% and 9.3% brackets). Multiply your conversion amount by your state's bracket rate for a quick estimate, then check whether your age qualifies for an exclusion.

Does moving to a no-tax state before converting save money?

Yes, if you genuinely establish residency before the conversion. Because the conversion is taxed in the state where you're a resident when it occurs, relocating to a no-income-tax state ahead of a large multi-year conversion ladder can eliminate the state portion entirely. Confirm domicile rules carefully, as some former states aggressively audit part-year moves.

Do Roth conversions affect ACA subsidies?

Yes. A conversion increases your MAGI, and crossing 400% of the federal poverty level ($62,600 single / $84,600 couple in 2026) eliminates your ACA premium tax credit. For early retirees this subsidy clawback often dwarfs the income tax on the conversion, so model both together.