Which States Do Not Tax Pensions?
"Does my state tax pensions" does not have one answer, because most states do not treat every pension the same. A federal civil-service annuity, a state teacher's pension, a company pension and military retired pay can each get a different answer in the same state. This page answers by type.
No income tax at all: nine states
Every pension is untaxed here, the same way a paycheck is.
That is the cleanest version of "does not tax pensions." It is also why counts of states that do not tax pensions vary so much. They mix these nine with states that exempt pensions specifically, and different lists draw that second line differently.
Private-employer pensions
Money paid by a private company's defined-benefit plan. Alabama exempts it in full, at any age, with no dollar cap, which is unusual: Alabama otherwise taxes withdrawals from a 401(k) or IRA.
Hawaii exempts the part the employer paid for, and Iowa exempts it from 55. Illinois, Mississippi, Pennsylvania and the nine no-tax states exempt it too. Most other states tax a private pension as ordinary income, sometimes reduced by a general retirement-income deduction that also covers IRA and 401(k) money. See the full state comparison for each state's deduction amount.
Federal civil-service pensions (CSRS and FERS)
These states exempt a federal civil-service annuity in full. Several tax federal pensions but exempt their own state or local government pensions instead. New York is the clearest example. A state, local or federal pension there is fully exempt. A 401(k) or IRA gets a $20,000-per-person exclusion instead, from 59½.
State and local government pensions
Ten states exempt a pension from their own state or local government in full, beyond the nine with no income tax. They are Alabama, Hawaii, Illinois, Iowa, Kansas, Louisiana, Massachusetts, Mississippi, New York and Pennsylvania. Hawaii's exemption covers the part the employer funded, and Iowa's starts at 55. Six of the ten exempt a public pension from another state too. Kansas taxes one in full. Louisiana and New York allow only their general retirement exclusion. Massachusetts taxes it unless the paying state exempts Massachusetts pensions in return.
Otherwise, check the specific plan. A state teachers' or police pension often has its own statute, separate from the general pension rules on that state's page.
Military retirement pay
Military retired pay gets the most generous treatment of the four types, and the most separate rules. Forty states exempt it in full. Nine exempt part of it by an amount, age or income limit. Two tax most of it. Which states do not tax military retirement covers all 51 in full, including the partial exemptions by amount and age.
The states with a general retirement-income deduction
Several states do not exempt pensions as a category. Instead they subtract a large enough dollar amount that most retirees owe nothing on one anyway.
Georgia shelters up to $65,000 a person from 65. Michigan shelters up to $67,610 single or $135,220 joint from 2026. Maine shelters up to $49,824 a person, reduced by any Social Security received.
These deductions usually cover pension, IRA and 401(k) income under one shared cap. A large pension can use up room a 401(k) withdrawal would otherwise need. Check the cap on the specific state's page before assuming both are covered in full.
What "fourteen states" usually means
The commonly repeated count bundles the nine with no income tax with a handful of the broadest pension exemptions. Different sources draw that second group differently.
This page does not publish a single number for that reason. The honest answer changes by pension type, which is the entire point above.
Frequently asked questions
What are the 14 states that do not tax pensions?
There is no single fixed list, because it depends on which pension exemptions are counted alongside the nine states with no income tax at all. This page breaks it down by pension type instead — private, federal, state or local, and military — because the count changes depending on which of those you mean.
Do all states tax federal pensions?
No. Several exempt a federal civil-service (CSRS or FERS) annuity in full, and some that tax federal pensions still exempt their own state or local government pension instead. See the federal civil-service section above.
What states do not tax retirement income at all?
Nine states have no state income tax at all — Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming — so pensions, Social Security and 401(k) or IRA withdrawals are all untaxed there. A larger group of states tax some retirement income but exempt pensions specifically; see each type above.
Does my state tax my pension the same as my 401(k)?
Usually not. Most states that tax retirement income treat a pension and a 401(k) or IRA differently, sometimes very differently — Maryland’s pension exclusion, for example, does not reach IRA withdrawals at all. Check the pension row and the 401(k)/IRA row separately on your state’s page.
More guides
Run the numbers
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