There are 14 states that impose a tax on Social Security income: Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia.

There are 7 states that do not tax individual income, retirement or otherwise: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two other states impose income taxes only on dividends and interest, New Hampshire and Tennessee.

States that tax pension income are: Alabama, Arizona, California, Connecticut, District of Columbia, Idaho, Indiana, Kansas, Massachusetts, Minnesota, Nebraska, North Carolina, North Dakota, Rhode Island, Vermont and West Virginia.

There are nine states that exempt all federal, military, and in-state pensions as well as all Social Security benefits from income tax: Alabama, Hawaii, Illinois, Louisiana, Massachusetts, Michigan, Mississippi, New York, and Pennsylvania. Alabama, Hawaii, and Illinois also exempt income from certain types of private pensions.

Pennsylvania and Mississippi are unique in that they are the only states in the country that exempt all retirement income, even IRA, and 401(k) distributions.