Limited Pension Exemptions

There’s some good news for seniors who will rely on a pension as they retire, as 21 out of the 41 states that do have an income tax, exempt civil, government and military pensions. These include Alaska, Florida, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

But don’t worry, you may still benefit if you live in one of the 24 states that offer partial exemptions of pension income. They are as follows Alabama, Arkansas, Colorado, Delaware, Georgia, Hawaii, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Missouri, Montana, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, South Carolina, Utah, Virginia, and Wisconsin.