06/02/2026
A state that does not tax pension income can sound like the perfect retirement answer.
But that is only one piece of the picture.
Before moving, filing, or making a retirement decision, retirees should also look at Social Security, IRA withdrawals, 401(k) distributions, annuity income, property taxes, sales taxes, housing costs, and federal income tax.
A pension may be state tax-free, but that does not always mean all retirement income is tax-free.
The better move is to slow down and look at the full retirement tax picture before making a big decision.
Read the blog: https://irsprob.com/2026/06/02/states-that-do-not-tax-pension-income/
Call IRSProb: 214-214-3000
States that do not tax pension income can sound appealing, but retirees should check state rules, federal taxes, and other retirement income before making decisions.