Best States to Retire for Taxes (2026)
Where you retire can save — or cost — you thousands in taxes on retirement income. Nine states have no income tax at all, while others offer partial exemptions for Social Security, pensions, or military retirement. This guide ranks all 50 states by their tax-friendliness for retirees.
- Alaska ranks #1 with the lowest top tax rate at 0.00%.
- California ranks last at 13.30% — the highest among all states.
- The top 5 states are Alaska, Florida, Nevada, New Hampshire, South Dakota.
- The ranking basis, source limitations, and calculation method are documented in the Methodology section below.
Top 3 States
All 50 States Ranked
Lowest to highest by top tax rate
| # | State | Top Tax Rate | Property Tax | Cost of Living | Homestead Exemption | Calculator |
|---|---|---|---|---|---|---|
| 1 | Alaska | 0.00% | 0.94% | 125.9 | $150,000 | Retirement Tax Calculator |
| 2 | Florida | 0.00% | 0.78% | 102.8 | $50,000 | Retirement Tax Calculator |
| 3 | Nevada | 0.00% | 0.50% | 104.2 | $605,000 | Retirement Tax Calculator |
| 4 | New Hampshire | 0.00% | 1.50% | 112.6 | $0 | Retirement Tax Calculator |
| 5 | South Dakota | 0.00% | 1.00% | 92.6 | $0 | Retirement Tax Calculator |
| 6 | Tennessee | 0.00% | 0.52% | 89.7 | $5,000 | Retirement Tax Calculator |
| 7 | Texas | 0.00% | 1.40% | 93.9 | $100,000 | Retirement Tax Calculator |
| 8 | Washington | 0.00% | 0.75% | 110.7 | $0 | Retirement Tax Calculator |
| 9 | Wyoming | 0.00% | 0.53% | 95.2 | $20,000 | Retirement Tax Calculator |
| 10 | North Dakota | 1.95% | 0.92% | 92.5 | $0 | Retirement Tax Calculator |
| 11 | Arizona | 2.50% | 0.48% | 102.2 | $0 | Retirement Tax Calculator |
| 12 | Indiana | 2.95% | 0.76% | 90.5 | $48,000 | Retirement Tax Calculator |
| 13 | Louisiana | 3.00% | 0.55% | 91.1 | $75,000 | Retirement Tax Calculator |
| 14 | Pennsylvania | 3.07% | 1.26% | 98.7 | $0 | Retirement Tax Calculator |
| 15 | Kentucky | 3.50% | 0.74% | 90.3 | $46,350 | Retirement Tax Calculator |
| 16 | Ohio | 3.50% | 1.36% | 90.8 | $26,200 | Retirement Tax Calculator |
| 17 | Arkansas | 3.70% | 0.56% | 89 | $0 | Retirement Tax Calculator |
| 18 | Iowa | 3.80% | 1.33% | 90.1 | $4,850 | Retirement Tax Calculator |
| 19 | North Carolina | 3.99% | 0.66% | 95.1 | $0 | Retirement Tax Calculator |
| 20 | Mississippi | 4.00% | 0.58% | 83.3 | $75,000 | Retirement Tax Calculator |
| 21 | Michigan | 4.25% | 1.19% | 91.4 | $0 | Retirement Tax Calculator |
| 22 | Colorado | 4.40% | 0.50% | 105.1 | $0 | Retirement Tax Calculator |
| 23 | Oklahoma | 4.50% | 0.79% | 86.6 | $1,000 | Retirement Tax Calculator |
| 24 | Nebraska | 4.55% | 1.44% | 90.8 | $0 | Retirement Tax Calculator |
| 25 | West Virginia | 4.58% | 0.51% | 84.1 | $20,000 | Retirement Tax Calculator |
| 26 | Utah | 4.65% | 0.48% | 101.3 | $0 | Retirement Tax Calculator |
| 27 | Missouri | 4.70% | 0.89% | 89.8 | $15,000 | Retirement Tax Calculator |
| 28 | Illinois | 4.95% | 1.88% | 96.4 | $10,000 | Retirement Tax Calculator |
| 29 | Alabama | 5.00% | 0.37% | 88.1 | $4,000 | Retirement Tax Calculator |
| 30 | Georgia | 5.19% | 0.79% | 93.4 | $2,000 | Retirement Tax Calculator |
| 31 | South Carolina | 5.21% | 0.49% | 95 | $50,000 | Retirement Tax Calculator |
| 32 | Montana | 5.65% | 0.61% | 101.6 | $250,000 | Retirement Tax Calculator |
| 33 | Kansas | 5.70% | 1.21% | 86.3 | $40,000 | Retirement Tax Calculator |
| 34 | Maryland | 5.75% | 0.92% | 115.4 | $0 | Retirement Tax Calculator |
| 35 | Virginia | 5.75% | 0.78% | 103.7 | $0 | Retirement Tax Calculator |
| 36 | Idaho | 5.80% | 0.50% | 97.7 | $125,000 | Retirement Tax Calculator |
| 37 | New Mexico | 5.90% | 0.63% | 94.6 | $0 | Retirement Tax Calculator |
| 38 | Rhode Island | 5.99% | 1.12% | 107.8 | $0 | Retirement Tax Calculator |
| 39 | Delaware | 6.60% | 0.54% | 101.5 | $0 | Retirement Tax Calculator |
| 40 | Connecticut | 6.99% | 1.54% | 112.8 | $0 | Retirement Tax Calculator |
| 41 | Maine | 7.15% | 0.98% | 109.4 | $25,000 | Retirement Tax Calculator |
| 42 | Wisconsin | 7.65% | 1.32% | 93.3 | $75,000 | Retirement Tax Calculator |
| 43 | Vermont | 8.75% | 1.51% | 114.5 | $0 | Retirement Tax Calculator |
| 44 | Massachusetts | 9.00% | 1.00% | 135 | $500,000 | Retirement Tax Calculator |
| 45 | Minnesota | 9.85% | 1.00% | 96.8 | $0 | Retirement Tax Calculator |
| 46 | Oregon | 9.90% | 0.81% | 113.1 | $0 | Retirement Tax Calculator |
| 47 | New Jersey | 10.75% | 1.88% | 115.2 | $0 | Retirement Tax Calculator |
| 48 | New York | 10.90% | 1.30% | 123.8 | $0 | Retirement Tax Calculator |
| 49 | Hawaii | 11.00% | 0.29% | 193.3 | $100,000 | Retirement Tax Calculator |
| 50 | California | 13.30% | 0.70% | 142.2 | $300,000 | Retirement Tax Calculator |
Methodology
How we collected and ranked the data
States are ranked only by general top marginal income tax rate (ascending), not by their retirement-income exclusions or age deductions, so this is a broad tax-rate comparison rather than a definitive retirement-tax ranking. Illinois and Pennsylvania exclude qualifying retirement income despite positive general rates; Virginia does not exclude retirement distributions but can reduce the taxable base through age, standard, and personal deductions. States with no income tax rank first; property tax and housing costs also matter. See each source-backed calculator for the encoded state rule.
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View all 107 state comparisonsFrequently Asked Questions
Which states don't tax retirement income?
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming have no broad individual income tax. Illinois excludes the qualifying retirement categories modeled by its source-backed calculator, and Pennsylvania excludes qualifying old-age retirement benefits after plan conditions are met. Virginia still taxes retirement distributions but offers age-based deductions. Many other states exempt Social Security or offer partial pension exclusions, so the general-rate ranking above is not a complete retirement-tax ranking.
Is Social Security taxed at the state level?
Most states do not tax Social Security benefits. As of 2026, only 8 states tax Social Security income in some form (Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont), and most of those offer partial exemptions for lower-income retirees. Kansas, Missouri, Nebraska, and West Virginia used to tax it but have all fully repealed the tax as of 2026. At the federal level, up to 85% of Social Security may be taxable depending on total income.