States Offering Tax-Free Social Security and Future Benefit Changes

Thirteen U.S. states do not tax retirement income from Social Security, 401(k), IRA, or pensions, potentially lowering retirees' tax bills. Nine states, including Florida and Texas, have no income tax, while four others, like Illinois and Pennsylvania, exempt retirement income from taxation. However, some states may tax early withdrawals or specific types of retirement income. Additionally, many states do not tax Social Security benefits, offering further tax relief for retirees. Despite these exemptions, other taxes like property and sales taxes remain unavoidable.