Which States Tax Retirement Income in 2026? The Same Dollars as a Pension, IRA, 401(k), Capital Gains or Interest, in All 51 Jurisdictions

Published 2026-10-28. Tax year 2026 (the return filed in early 2027).

Which states tax retirement income in 2026, and which kinds?

It depends on the kind of income as much as the state. For four retirees on Social Security, each adding one slice of retirement income in 2026, 12 jurisdictions taxed none of it (Alaska, Florida, Georgia, Nevada, New Hampshire, New Jersey, North Dakota, South Dakota, Tennessee, Texas, Washington, Wyoming). 5 more charged no state tax on the pension, IRA or 401(k) money of any of the four (Illinois, Iowa, Michigan, Mississippi, Pennsylvania) but did tax their capital gains or interest. Elsewhere the type matters: a private pension cost less than the same IRA dollars in 4 states, a 401(k) withdrawal less than an IRA one in 2, and long-term gains less than IRA money in 8. For a couple at 67 with $40,000 of Social Security, $40,000 of IRA withdrawals added state tax in 18 jurisdictions, most in Indiana ($1,692 a year).

Price your own retirement income in your state: the 2026 state income tax calculator
Free: Social Security, IRA, pension, gains and interest, any state.

The four retirees and the five kinds of income

Each household is on Social Security and adds one slice of other retirement income. The slice is priced five ways: as a private pension, a traditional IRA withdrawal, a 401(k) withdrawal, long-term capital gains or taxable interest. The figure is the state income tax the slice adds: the state tax with it, less the state tax on the Social Security alone. Couples' income is split evenly between the spouses; everyone is 67.

How many states tax each kind of retirement income

Why the type matters. Many states exclude a pension or retirement-plan payment up to a cap, at an age, or below an income limit, and some cover employer plans (a 401(k)) but not IRAs; several tax long-term gains at a lower rate or exclude part of them; interest falls outside most pension exclusions. Each state's own rules, with their official sources, are on its state guide and in the pension-exclusion map.

The ten highest state taxes on the same IRA money

Every state

Related: Which states tax Social Security in 2026 · Ten retiree households priced in every state · State pension-exclusion map · Capital gains tax by state for retirees · States with no income tax

Download the data

Every case on this page, with its inputs: which-states-tax-retirement-income-2026.csv (the 1020 household-type-state cases) · which-states-tax-retirement-income-2026.json (CC0). Dollar amounts in USD a year.

Questions

Which states do not tax retirement income in 2026?

For four retirees priced here, 12 jurisdictions taxed none of their retirement income (Alaska, Florida, Georgia, North Dakota, New Hampshire, New Jersey, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming), and 5 more taxed no pension, IRA or 401(k) money (Iowa, Illinois, Michigan, Mississippi, Pennsylvania) but did tax capital gains or interest.

Which states do not tax pensions?

19 jurisdictions charged no state tax on a private pension for any of the four households: Alaska, Alabama, Florida, Georgia, Hawaii, Iowa, Illinois, Michigan, Mississippi, North Dakota, New Hampshire, New Jersey, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wyoming. Others exclude part of a pension depending on age, income and the pension's source.

Which states do not tax IRA and 401(k) withdrawals?

17 jurisdictions taxed none of the IRA withdrawals and 17 none of the 401(k) withdrawals for these retirees. A 401(k) payment was taxed less than the same IRA withdrawal in 2 states, where an employer plan counts as a pension.

Does Pennsylvania tax retirement income?

Not the pension, IRA or 401(k) money of these retirees (a $0 state tax on $40,000 of IRA withdrawals for a couple at 67), but interest is taxed: $1,228 on the same amount.

Does Illinois tax retirement income?

Illinois charged $0 on $40,000 of IRA withdrawals for a couple at 67 and $1,591 on the same amount of long-term capital gains.

How much state tax does California charge on IRA withdrawals in retirement?

For a couple at 67 with $40,000 of Social Security, $40,000 of IRA withdrawals added $0 of California tax a year; $100,000 added $1,630.

Method and sources

Every figure was computed by QuantCalc's open tax engines (federal 2.5.1, state 1.21.2) through the household module the free state income tax calculator runs, then recomputed by the C engines behind the federal and state tax APIs from independently written requests, agreeing to the cent. The state engine receives the federal return's figures (the taxable Social Security, the federal tax, the NIIT) as a state return reads them, so a slice that makes more Social Security federally taxable can move the state tax too. Each state's rules and their official sources are documented in the state tax engine documentation; the federal sources:

• 26 U.S. Code § 86
• Publication 915, Social Security and Equivalent Railroad Retirement Benefits
• 26 U.S. Code § 151
• Rev. Proc. 2025-32: 2026 inflation-adjusted items (incl. One Big Beautiful Bill amendments)
• 26 U.S. Code § 1411

What is not modelled

• The Indiana and Maryland figures include the county income tax every county there levies, on the state return, at a default county rate: Indiana at 1.75% (county rates); Maryland at 3.12% (county rates). A resident pays their own county's rate. Other local income taxes (city and school-district taxes, and county taxes in other states) are not included (see local income tax on retirement income).
• Income tax only: no property or sales tax.
• A private pension: government and military pensions have their own exclusions in many states (the pension-exclusion map).
• Everyone is 67; exclusions with an age test treat younger retirees differently. Withdrawals are ordinary distributions (no early-withdrawal penalty, no Roth money).
• Couples' income is split evenly between the spouses; a state that caps an exclusion per person treats an uneven split differently.
• The households are illustrations, not averages.

An estimate, not tax advice. These are computed examples for the 2026 tax year from QuantCalc's open tax engines (federal 2.5.1, state 1.21.2). Your own return depends on facts these examples do not include. Check any decision with your tax preparer before acting.

@misc{quantcalc2026whichstatestaxretirementincomein2026pens,
  title  = {Which States Tax Retirement Income in 2026? Pension, IRA, 401(k), Capital Gains and Interest, Priced in Every State},
  author = {{QuantCalc Research}},
  year   = {2026},
  url    = {https://quantcalc.app/research/which-states-tax-retirement-income-2026/},
  note   = {Accessed <date>}
}