Which States Do Not Tax Social Security or Retirement Benefit

The answer depends on which tax question you’re asking.

Are you asking whether a state taxes Social Security benefits? Whether it taxes pension payments, IRA withdrawals, and 401(k) distributions? Or whether it has any individual income tax at all?

Those questions produce different lists. One result counts 38 states that exempt Social Security from state tax. Another count says 41 states plus Washington, D.C., did not tax Social Security for the 2025 tax year. A separate advisor guide lists nine states with no income tax, 13 states that fully exempt retirement distributions, and eight states that still tax Social Security.

These numbers aren’t automatically contradictory. They may use different tax years, definitions, and types of retirement income. Use the sections below to compare the categories instead of relying on one headline number.

How many states do not tax Social Security benefits?

For the 2025 tax year, one result says 41 states and Washington, D.C., did not tax Social Security benefits.

Another ranking gives a lower count of 38 states. The difference may come from the year being measured or from how the list defines an exemption. Some lists may count only states with a full exemption. Others may include states where most residents do not owe tax because of income limits, deductions, or special rules.

That distinction matters. A state can:

• Exclude Social Security for everyone.
• Exclude it only for taxpayers below certain income levels.
• Tax some benefits while exempting other benefits.
• Follow federal income rules in a way that leaves many retirees with no state tax bill.

So the safest answer is not simply “38” or “41.” For the 2025 tax year, the supplied count is 41 states plus Washington, D.C. A separate ranking reports 38 states. Check the tax year and the state’s exact rule before treating either number as a permanent list.

Several states have also changed their treatment recently. That can make older retirement guides misleading.

Eight states without a broad individual income tax

The commonly listed states with no individual income tax are:

1. Alaska
2. Florida
3. Nevada
4. New Hampshire
5. South Dakota
6. Tennessee
7. Texas
8. Wyoming

If a state does not have an individual income tax, it generally does not tax income from sources such as Social Security, pensions, IRAs, or 401(k) withdrawals through a standard individual income tax. But don’t treat that as a complete tax answer for every retiree.

A no-income-tax label does not tell you everything about the state’s tax system. It also does not tell you how the state handles other costs that can affect a retirement budget. Your decision may still depend on property taxes, sales taxes, estate-related taxes, housing costs, and the taxes charged by your current state when you move.

There is also a counting issue here. One advisor guide says nine states have no income tax, while another list identifies the eight states above. That difference shows why you should check the definition being used. Some lists count states based on whether they tax personal income broadly. Others may classify a state differently because it taxes certain types of income or has changed its rules.

For your own comparison, ask a narrow question: Does this state tax my specific retirement income? A label such as “no income tax” is useful, but it should be the start of your review rather than the end.

States that exempt pensions, IRAs, and 401(k) withdrawals

Social Security is only one part of retirement income. Many retirees also rely on:

• A pension
• Traditional IRA withdrawals
• 401(k) distributions
• Other taxable retirement-account withdrawals

A state can exempt Social Security and still tax one or more of these sources. That’s why a state may appear on a list of Social Security-friendly states but not on a list of states that exempt all retirement income.

One advisor guide says 13 states fully exempt retirement distributions. That category is broader than Social Security. It refers to retirement-account income such as pension payments and distributions from IRAs or 401(k) plans, depending on the state’s rules.

The word fully deserves attention. A full exemption usually means the state does not include the covered retirement income in its individual income tax calculation. But the exact scope still matters. A rule may cover:

• All pension income
• Only private pensions
• Public or military pensions
• Traditional IRA withdrawals
• 401(k) distributions
• Certain retirement payments but not every account type

For example, a state might give special treatment to a pension but tax withdrawals from a traditional IRA. Another may exempt retirement-account withdrawals but apply different rules to pension income. Social Security may have its own separate treatment again.

You should make a simple income list before comparing states:

This approach is more useful than searching for a single “best retirement state.” Your result depends on the mix of income you expect to receive.

If most of your money comes from Social Security, the Social Security rule may matter most. If you have large traditional IRA or 401(k) balances, the state’s treatment of withdrawals could matter more. A state that saves you money on Social Security may not save you much on a large retirement-account distribution.

States that recently eliminated Social Security taxes

Recent changes are one reason older lists may show different results from newer ones.

Beginning in 2024, Missouri, Kansas, and Nebraska completely eliminated taxes on Social Security benefits. That means a guide written before the change may place those states in a different category.

West Virginia also completely phased out its tax on Social Security benefits.

These changes affect the answer to “which states do not tax Social Security or retirement benefits,” but they do not automatically answer the broader retirement-income question. Removing state tax on Social Security does not necessarily mean the state also exempts:

• Pension income
• Traditional IRA withdrawals
• 401(k) distributions
• Other taxable income

That is the key distinction. A state can improve its Social Security treatment while keeping a separate tax on other retirement income.

Tax changes can also take effect for one tax year while a website still displays older information. Always match the rule to the year you plan to move, the year you plan to file, or both. If you are comparing a move during retirement, the timing of the change may affect your first state tax return.

Why lists of tax-friendly retirement states show different totals

Different totals usually come from three basic differences: tax year, definition, and income type.

Tax year

A state may remove a tax or expand an exemption. Missouri, Kansas, and Nebraska, for example, began completely eliminating Social Security taxes in 2024. West Virginia also phased out its tax.

A list using older rules may not match a list focused on 2025.

Definition

“Does not tax Social Security” can mean several things. A list may count only states with a complete exemption. Another may count states where the tax applies only to some residents or where deductions leave many retirees with no tax due.

Likewise, “no income tax” can be defined differently from “no tax on retirement income.” Those phrases should never be treated as interchangeable.

Income type

Social Security, pensions, IRA withdrawals, and 401(k) distributions are separate categories. A state may treat each one differently.

That explains why one guide can report:

• 38 states exempting Social Security
• 41 states plus Washington, D.C. not taxing Social Security for 2025
• Nine states with no income tax
• 13 states fully exempting retirement distributions
• Eight states that still tax Social Security

Those figures are describing different groups, and at least some use different time periods or classification rules. A list can be accurate within its own definition without answering every question a retiree has.

How Social Security taxation differs from retirement-income taxation

Social Security is a federal benefit. State income-tax rules decide whether the benefit is included in state taxable income.

Retirement income is a much wider category. It can include pension payments and money taken from traditional retirement accounts. Those payments may be taxed under ordinary state income-tax rules even when Social Security is exempt.

Here’s the practical way to separate the questions:

Question one: Does the state tax Social Security?

Start with the rule for the tax year you care about. Look for a full exemption, a partial exemption, or an income-based limit.

The 2025 count of 41 states and Washington, D.C., not taxing Social Security gives you a broad starting point. The separate count of 38 shows that lists can vary based on their method.

Question two: Does the state tax pensions?

Find out whether the exemption covers all pensions or only certain types. Some rules can treat public, private, or military pensions differently. Don’t assume that a Social Security exemption applies to pension checks.

Question three: Does the state tax IRA and 401(k) withdrawals?

Traditional IRA and 401(k) withdrawals may be treated as taxable retirement distributions. A state that does not tax Social Security may still count these withdrawals as income.

This distinction is especially important if you plan to take large withdrawals for housing, medical costs, travel, or other one-time expenses. A state’s treatment of a single large distribution could matter more than its treatment of your monthly Social Security benefit.

What to check before choosing a state for retirement

Make your comparison around your own income, not around a general ranking.

Start with these checks:

1. Write down each income source. Include Social Security, pensions, IRA withdrawals, 401(k) distributions, wages, interest, and other income.
2. Use the correct tax year. Rules can change, and recent changes in Missouri, Kansas, Nebraska, and West Virginia show why the year matters.
3. Check Social Security separately. Confirm whether the state fully exempts it or applies limits.
4. Check pensions separately. Find out whether the rule covers your type of pension.
5. Check IRA and 401(k) withdrawals. Don’t assume that a Social Security exemption covers retirement-account income.
6. Review the state’s wider tax picture. Income tax is only one part of what you may pay.
7. Compare your current state with the place you’re considering. A move can change how several kinds of income are treated.

The most useful comparison may be a small table showing your expected income under each state’s rules. Put Social Security, pension income, IRA withdrawals, and 401(k) withdrawals in separate rows. Then check the state’s treatment for the relevant tax year.

That will give you a much clearer answer than any single list of “tax-friendly” states. Compare your current and potential retirement states by checking Social Security, pension, IRA, 401(k), and overall income-tax treatment side by side.