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Here are 13 states that won't tax your Social Security, 401(k), individual retirement account (IRA), or pension income. A map of the U.S. overlaid with $100 bills. Image source: Getty Images.
Prior to the end of 2024 the state did tax dividend and interest income -- often an important source of funding for retirees. As of the beginning of 2025, however, this tax has also been lifted ...
New Jersey has a graduated state income tax rate ranging from 1.4% to 10.75%. The state taxes retirement income but offers large deductions to seniors ages 62 and older whose adjusted gross income ...
Source: IRS and Montana Governor's Office. 5. New Mexico. New Mexico residents won't owe state Social Security benefit taxes if their income is under $100,000 for single filers.
In addition to the nine states that simply don't impose any income tax on anyone, four more states don't tax retirement income from 401(k) accounts, IRAs, and pensions, even though they do still ...
This means that early distributions from retirement plans may not qualify as retirement income and could be subject to tax and a penalty. The top tax rate will be reduced to 4.4 percent in 2025 ...
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