Transparent method
The formula
Worked example
Example inputs
How to interpret the result
States vary widely on which retirement income they tax at all. Some exempt Social Security and pensions entirely, others tax nearly everything, and a few have no income tax whatsoever, so the identical retirement income can produce very different state tax bills purely based on which state a retiree lives in.
Before you rely on it
What to check
Confirm your specific state's current exclusion rules for Social Security, pensions and withdrawals separately, since states frequently treat each income type differently within the same tax code.
The common error
Where people go wrong with state retirement income tax calculator
Assuming retirement income is taxed the same way state to state, or the same way it was taxed federally. State treatment of Social Security, pensions and retirement account withdrawals varies enough that a wrong assumption meaningfully skews the estimate.
Sensitivity evidence
How entered state tax rate changes the estimated state retirement tax
| Entered state tax rate | Estimated state retirement tax | Estimated taxable retirement income |
|---|---|---|
| 3.0% | $1,050 | $35,000 |
| 4.0% | $1,400 | $35,000 |
| 5.0%worked example | $1,750 | $35,000 |
| 6.0% | $2,100 | $35,000 |
| 7.0% | $2,450 | $35,000 |
Every input, tested
Which input moves the estimated state retirement tax most
| Input | Tested from | To | Estimated state retirement tax at each end | Swing |
|---|---|---|---|---|
| Entered state tax rate | 4.0% | 6.0% | $1,400 to $2,100 | $700 (40%) |
| Annual pension and retirement withdrawals | $36,000 | $44,000 | $1,550 to $1,950 | $400 (23%) |
| State retirement-income exclusion | $13,500 | $16,500 | $1,825 to $1,675 | $150 (8.6%) |
| Other state-taxable income | $9,000 | $11,000 | $1,700 to $1,800 | $100 (5.7%) |
| Entered state-taxable Social Security share | 0.000% | 0.250% | $1,750 to $1,754 | $3.75 (0.2%) |
| Annual Social Security benefits | $27,000 | $33,000 | $1,750 to $1,750 | none |
Two variables at once
Estimated state retirement tax by entered state tax rate and annual pension and retirement withdrawals
| Entered state tax rate \ Annual pension and retirement withdrawals | $32,000 | $40,000 | $48,000 |
|---|---|---|---|
| 3.0% | $810 | $1,050 | $1,290 |
| 4.0% | $1,080 | $1,400 | $1,720 |
| 5.0% | $1,350 | $1,750 | $2,150 |
| 6.0% | $1,620 | $2,100 | $2,580 |
| 7.0% | $1,890 | $2,450 | $3,010 |
Step by step
The worked example, input by input
| Input | Value used |
|---|---|
| Annual Social Security benefits | $30,000 |
| Entered state-taxable Social Security share | 0.000% |
| Annual pension and retirement withdrawals | $40,000 |
| Other state-taxable income | $10,000 |
| State retirement-income exclusion | $15,000 |
| Entered state tax rate | 5.0% |
| Estimated state retirement tax | $1,750 |
| Estimated taxable retirement income | $35,000 |
Where the inputs come from
Enter your Social Security benefits and the share your state taxes, which is zero in most states, plus pension and retirement account withdrawals, other income, and any state exclusion for retirement income. Rules vary sharply: some states exempt Social Security, pensions or both, some exempt a fixed amount by age, and a few tax everything. The state revenue department's retirement income page lists the exclusion and the tax rate.
Using the estimated state retirement tax in a real decision
Weigh that against housing, healthcare and property tax, which often matter more than income tax alone.
When the result stops applying
State rules change often, and this simple model uses one effective rate and one exclusion. Some states tax withdrawals from IRAs and 401(k)s but not pensions, and age thresholds apply. Credits, local taxes and the federal treatment of Social Security are separate. Moving for taxes requires actually changing your domicile.
What to compare it with
See the federal side with the taxable Social Security and retirement income tax calculators, and the state income tax page for working income. The retirement withdrawal order calculator can show how withdrawal choices change income. Check the state's own guidance before deciding where to live.
People also ask
Frequently asked questions
Which states tax Social Security?
A minority of states, and the number has been falling as states repeal the tax. Most exempt it entirely, but a few tax it with exemptions for lower incomes.
Are pensions taxed by states?
It varies. Some states exempt public pensions, some exempt all pensions up to a limit, and some tax them fully, so check your state's rules.
Does moving to a no-tax state avoid taxes?
You avoid state income tax, but you may pay more in property, sales or other taxes, and you must establish real residency in the new state.