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Where you live when you retire, doesn’t have to be where you live when you are retired. If you’re thinking about moving, one important consideration is taxes. Here’s a short guide to help you decide, with updates for 2025 that impact how Social Security benefits were taxed in three states plus how military pensions were affected. State income taxes can range as high as 13.3% – unless you live in a state that doesn’t tax retirement income. 😊 Nine states impose no income tax at all. If you are a retiree, you can move to any one of those states and not pay any state income taxes on your retirement income. But the list doesn’t end there. There are many other states that selectively exempt income from some retirement sources, like Social Security, pensions, military pensions, and distributions from defined contribution retirement plans. Read More: If you want some help planning for retirement, here are the best retirement planning tools in 2025. An important part of knowing if you are on track for retirement is understanding your expenses will be in retirement. Check out the average spending for retirees.  Financial planning is more than just saving for retirement. See how your net worth stacks up by age. Table of Contents9 States That Don’t Collect Income Tax13 States That Don’t Tax Defined Contribution Plan DistributionsWhat about Roth IRA distributions? 15 States That Don’t Tax Pension Income35 States That Don’t Tax Military Pensions41 States That Don’t Tax Social Security Income (Plus The District of Columbia)Is it Better to Live in a State that Doesn’t Tax Retirement Benefits? 9 States That Don’t Collect Income Tax Nine states currently have no income tax. Since they don’t tax income, that also means they don’t tax retirement income. The nine states with no income tax include: Alaska Florida New Hampshire* Nevada South Dakota Tennessee Texas Washington Wyoming * New Hampshire had a 3% income tax levied on interest and dividend income received in 2024. However, this tax has been repealed starting January 1st, 2025. 13 States That Don’t Tax Defined Contribution Plan Distributions As is the case with federal income tax, most states tax distributions from defined contribution plans. These include traditional, SEP, and SIMPLE IRAs; 401(k), 403(b), 457, and Thrift Savings Plans (TSPs). However, 13 states don’t impose tax on defined contribution plan distributions. (Source: Bankrate) You start with the nine that don’t tax income tax: Alaska Florida New Hampshire Nevada South Dakota Tennessee Texas Washington Wyoming Then add these four states that don’t tax defined contribution plan distributions: Illinois Iowa Mississippi Pennsylvania What about Roth IRA distributions? Generally speaking, states follow the same tax treatment with Roth IRA distributions as the IRS. But since each state has its own tax code, you’ll need to check with your tax preparer or tax software program to determine if (and when) Roth IRA distributions can be taken tax-free. * Note that in researching for this article, we could not