Archive · 21 Jun 2025
Some U.S. States Don't Tax Retirement Income
When you retire, you might still have to pay taxes on your retirement money, but some states don't make you do that.
Alaska, Florida, and Illinois are some of those places.
Alaska doesn't have any state income tax, so you don't pay taxes on your retirement income.
Florida also doesn't tax retirement income or even things like groceries.
Illinois does have an income tax, but it doesn't tax your retirement money.
But remember, even in these states, there might be other taxes like sales tax in Alaska.
Alaska, Florida, and Illinois do not tax retirement income.
Alaska has no state income tax.
Florida does not tax retirement income, estates, or inheritance.
Illinois has a 4.95% income tax but not on retirement income.
Local sales taxes in Alaska can reach 8%.
- Who
- Retirees.
- What
- States that do not tax retirement income.
- When
- Not specified.
- Where
- Alaska, Florida, and Illinois.
- Why
- To avoid paying taxes on retirement income.
- Alaska State Tax
- No state income tax
- Alaska Sales Tax
- Up to 8%
- Florida Retirement Tax
- None
- Illinois Income Tax
- 4.95%
- Illinois Retirement Tax
- None