The Best States to Retire Without Taxing Your Income

States that don't have any income tax

• Alaska
• Florida
• Nevada
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Other states that don't tax retirement income

1. Illinois: Distributions from retirement plans, including 401(k)s and IRAs, and Social Security income are exempt from the state's income tax.
2. Iowa: Residents over 55 don't pay taxes on their retirement account withdrawals as of 2023.
3. Mississippi: Retirement account withdrawals aren't taxable as long as you meet the plan requirements -- wait until you're at least 59 1/2 and have had the account for at least five years for Roth accounts.
4. Pennsylvania: Pennsylvania also doesn't tax retirement income as long as you meet plan requirements; early withdrawals may be subject to taxation though.

Is moving to a state that doesn't tax retirement income worth it? Consider whether relocating to a state that doesn't tax retirement income is financially beneficial for you. Take into account potential higher sales or property taxes and the overall cost of living. Evaluate non-financial aspects like weather and proximity to loved ones. Compare tax laws in your home state with your chosen retirement state and seek advice from a tax professional if needed.