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Rankings · Taxes
Tax on retirement income.
How a state treats pensions, 401(k) and IRA withdrawals. Nine states levy no income tax at all; four more tax wages but exempt retirement income, which is why Illinois can charge 4.95% on a salary and nothing on the same amount drawn from a 401(k). Everywhere else it is taxed as ordinary income, often with age or income-based exclusions this single figure cannot capture.
Alaska has the lowest published retirement income in this comparison, at No income tax. The next states shown are Florida (No income tax) and New Hampshire (No income tax).
The table orders 51 states by tax on retirement income. It describes one published measure, not an overall judgment about where to live.
Use the result as a starting point, then compare the underlying source, dates, and local county figures before making a decision. How a state treats pensions, 401(k) and IRA withdrawals. Nine states levy no income tax at all; four more tax wages but exempt retirement income, which is why Illinois can charge 4.95% on a salary and nothing on the same amount drawn from a 401(k). Everywhere else it is taxed as ordinary income, often with age or income-based exclusions this single figure cannot capture.
These guides combine this measure with other clearly named inputs; they are not overall state verdicts.
Free to use. The chart names its source and links back, so it stays honest wherever it ends up.
<iframe src="https://movermath.com/embed/retirement-income" width="100%" height="420" style="border:0" loading="lazy" title="Tax on retirement income by state"></iframe>Source: State revenue departments via Tax Foundation, mid-2026. · How this is built