No State Income Tax: States like Florida, Texas, and Wyoming don’t tax any income, including Social Security and retirement funds.
Social Security Exemption: States like Alaska and Nevada specifically exempt Social Security benefits from taxes.
Pension Income Exclusion: States such as Pennsylvania and Mississippi offer full exemptions on pension income.
401(k) and IRA Tax Benefits: Some states, like Michigan and Illinois, don’t tax distributions from 401(k)s and IRAs.
Higher Income Thresholds: In states like Nebraska, Social Security benefits are not taxed up to a certain income threshold.
Retirement Income Credits: Some states offer credits or deductions on retirement income, like in Arizona and Wisconsin.