Some states exempt multiple forms of retirement income and several states have no income tax at all.Credit: whitebalance space / Getty Images Key Takeaways Forty-two states don't tax Social Security income. Thirty-seven states don’t tax most military retirement pay. Sixteen states exempt pension income from state taxes. Nine states have no income tax. This count includes Washington, which taxes high earners' capital gains only. After a lifetime of contributing to Social Security, building up a r ...

The transition to retirement — going from a steady paycheck to living on a fixed income or pension — can be difficult to navigate. In addition — with inflation, tariffs and potentially soaring rates — many Americans have been struggling to keep pace with retirement savings, let alone their federal income taxes. Check Out: 5 Tax Loopholes the Ultra-Wealthy Use That Most Americans Don’t Know About Try This: 5 Low-Effort Ways To Make Passive Income (You Can Start This Week) Against this backdrop, one factor ...