Where you live in retirement can change your tax bill as much as how you draw down your savings. This page compares the 33 states the Deorbit Plan simulator covers, using the same simplified rules it applies to every plan: each state’s rate or brackets, its standard deduction and exemptions, whether it taxes Social Security, and any exclusion for IRA, 401(k) and pension income. Each state’s figures link to the source they came from, and every dollar amount is computed by the simulator’s own tax function.
To compare like with like, each state is run on one household: a retired couple, both 67, with $48,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 pension ($108,000 in all; federally, $40,000 of their benefits is taxable). Among the states that tax income, that couple pays least in Colorado, Georgia, Illinois, Kentucky, Michigan, Pennsylvania, South Carolina, Wisconsin ($0 each) and most in Utah ($4,450).
The states at a glance
- No income tax (9): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
- One flat rate (11): Alabama, Arizona, Colorado, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Pennsylvania, Utah.
- Graduated brackets (13): California, Connecticut, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New York, Ohio, Oregon, South Carolina, Virginia, Wisconsin.
- Tax Social Security (2): Minnesota, Utah. Every other state that taxes income exempts it in the simulator.
- Exclude all IRA and pension income, at least from a set age (2): Illinois, Pennsylvania.
- Exclude part of it, up to a per-person cap (8): Alabama, Colorado, Georgia, Kentucky, Michigan, New York, South Carolina, Wisconsin.
- No retirement exclusion modeled (14): Arizona, California, Connecticut, Indiana, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, North Carolina, Ohio, Oregon, Utah, Virginia. Several of these have a break in state law that depends on income or excludes IRAs; each page says why the simulator leaves it out.
All 33 states compared
| Income tax | Social Security | Retirement exclusion | |||
|---|---|---|---|---|---|
| Alabama | Flat 5% | 5% | Exempt | $6,000 per person, age 65+ | $1,825 (1.69%) |
| Alaska | None | none | Not taxed | Not needed | $0 (0.00%) |
| Arizona * | Flat 2.5% | 2.5% | Exempt | None modeled | $750 (0.69%) |
| California | 1%–12.3% | 12.3% | Exempt | None modeled | $735 (0.68%) |
| Colorado | Flat 4.4% | 4.4% | Exempt | $24,000 per person, age 65+ | $0 (0.00%) |
| Connecticut | 2%–6.99% | 6.99% | Exempt | None modeled | $1,120 (1.04%) |
| Florida | None | none | Not taxed | Not needed | $0 (0.00%) |
| Georgia | Flat 4.99% | 4.99% | Exempt | $65,000 per person, age 65+ | $0 (0.00%) |
| Illinois | Flat 4.95% | 4.95% | Exempt | All IRA/pension income, any age | $0 (0.00%) |
| Indiana | Flat 2.95% | 2.95% | Exempt | None modeled | $1,711 (1.58%) |
| Kentucky | Flat 3.5% | 3.5% | Exempt | $31,110 per person, any age | $0 (0.00%) |
| Maryland * | 2%–6.5% | 6.5% | Exempt | None modeled | $2,235 (2.07%) |
| Massachusetts | 5%–9% | 9% | Exempt | None modeled | $2,560 (2.37%) |
| Michigan * | Flat 4.25% | 4.25% | Exempt | $67,610 per person, any age | $0 (0.00%) |
| Minnesota | 5.35%–9.85% | 9.85% | Taxed | None modeled | $4,013 (3.72%) |
| Missouri | 2%–4.7% | 4.7% | Exempt | None modeled | $1,131 (1.05%) |
| Nevada | None | none | Not taxed | Not needed | $0 (0.00%) |
| New Hampshire | None | none | Not taxed | Not needed | $0 (0.00%) |
| New Jersey | 1.4%–10.75% | 10.75% | Exempt | None modeled | $1,001 (0.93%) |
| New York * | 3.9%–10.9% | 10.9% | Exempt | $20,000 per person, age 60+ | $154 (0.14%) |
| North Carolina | Flat 3.99% | 3.99% | Exempt | None modeled | $1,377 (1.27%) |
| Ohio | 2.75% above a 0% band | 2.75% | Exempt | None modeled | $1,134 (1.05%) |
| Oregon | 4.75%–9.9% | 9.9% | Exempt | None modeled | $4,105 (3.80%) |
| Pennsylvania | Flat 3.07% | 3.07% | Exempt | All IRA/pension income, age 60+ | $0 (0.00%) |
| South Carolina | 1.99%–5.21% | 5.21% | Exempt | $15,000 per person, age 65+ | $0 (0.00%) |
| South Dakota | None | none | Not taxed | Not needed | $0 (0.00%) |
| Tennessee | None | none | Not taxed | Not needed | $0 (0.00%) |
| Texas | None | none | Not taxed | Not needed | $0 (0.00%) |
| Utah | Flat 4.45% | 4.45% | Taxed | None modeled | $4,450 (4.12%) |
| Virginia | 2%–5.75% | 5.75% | Exempt | None modeled | $2,079 (1.93%) |
| Washington | None | none | Not taxed | Not needed | $0 (0.00%) |
| Wisconsin * | 3.5%–7.65% | 7.65% | Exempt | $24,000 per person, age 67+ | $0 (0.00%) |
| Wyoming | None | none | Not taxed | Not needed | $0 (0.00%) |
* Some figures for this state are not yet confirmed for 2026 in a primary source; its page lists which.
How to read the comparison
The couple’s tax is state income tax only, before any local income tax, and it uses the simulator’s simplifications: credits, income-tested deductions and phase-outs are left out, and state amounts are not indexed for inflation. The “top rate” is the highest marginal rate on a joint return, which most retirees never reach; the example column is the better guide to a typical bill. Each state’s page shows the brackets, a step-by-step version of the example, a single-filer version, how the tax grows with larger IRA withdrawals, the neighbouring states side by side, and a list of what the simulator simplifies for that state.
For the ideas behind the table, read state taxes in retirement and the taxes in retirement guide. To see a state over a whole plan, open a state’s page and follow its simulator link. Every figure, with its source and verification date, is on the sources page.
This page shows how the rules work. It is not financial, tax or investment advice. State law has details these pages leave out, so check the state’s own instructions or ask a tax professional before you act. See the disclaimer.