Which states don't tax federal pension income?

Nine states have no state income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming). A handful of others fully exempt federal pension income even though they do tax other income — including Alabama, Hawaii, Illinois, Mississippi, New York, and Pennsylvania.

Does this tool account for every state's exact tax rules?

No — it uses a flat, single-rate approximation for states that do tax retirement income, not a real bracket-by-bracket calculation, and it doesn't model age-gated or partial retirement-income exemptions that many states also offer. Confirm your own state's exact treatment before making a moving decision.

Free FERS Tool

Where to Retire — State Tax Comparison

Enter your pension, TSP, and Social Security income once and see how much state income tax would take out of it in all 50 states and DC — side by side.

Data current as of 2026 · Sources: State revenue departments

What this doesn't model: Uses a flat single-rate approximation per state, not a real bracket-by-bracket calculation. Social Security is taxed only in the eight states that tax it and full federal-pension exemptions are applied, but partial or age-gated retirement-income exclusions aren't modeled, and pension-only exemptions (AL, HI, LA, NY) show $0 even where TSP withdrawals are taxable.

Why state of residence matters so much in retirement

Unlike your working years, retirement income is portable — you can live anywhere and still collect your FERS pension, TSP withdrawals, and Social Security. That makes state income tax one of the largest controllable costs in retirement: the same $70,000/year of income can net thousands of dollars more per year in a no-tax state than in a high-tax one.

How this comparison works

Nine states charge no state income tax at all, and several more fully exempt federal pension income specifically. For every other state, we apply a flat, disclosed approximate effective rate to your combined pension + TSP + Social Security income — the same classification the FedHorizon report engine uses for your state of residence, just run across all 51 jurisdictions at once instead of one.

See your full retirement picture

State tax is one factor among many — cost of living, healthcare access, and proximity to family usually matter just as much. The FedHorizon Timeline models your full income picture, and the full report lets you enter your actual state of residence for a single-state estimate built into every figure.

FH / Full Analysis

Your state tax comparison is one input. Your full report combines pension, supplement, survivor election, and FEHB into one decision.

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Your numbers are sent to our calculation engine for this estimate and are never stored.

These are planning estimates, not official OPM benefit determinations. Verify your eligibility, service history and benefit estimates against your agency's official records before making retirement decisions.

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