Retirees in USA

Live, Laugh, Retire: Real Insights for American Seniors

12 States That Won’t Touch Your Pension, 401(k), or Social Security

· By Retirees in USA Editorial Team · RETIREMENT INCOME
A close-up of a hand writing on a budget, symbolizing financial control.
A person fills out a retirement budget form, taking advantage of South Dakota’s tax-friendly environment.

South Dakota

South Dakota attracts retirees with its natural beauty, rich history, and strong community. For retirees, the Mount Rushmore State has a low retirement income tax rate.

One state without an income tax is South Dakota. All income, including Social Security, pensions, and 401(k) and IRA payouts, is exempt from state taxes. This tax-friendly policy gives seniors extra money to enjoy their golden years.

South Dakota offers tax benefits beyond retirement income. Retirees may leave their possessions to their heirs without state taxes. With no income tax, pensioners and their family may save capital.

However, South Dakota retirees should address many tax issues. Local governments may increase the state’s 4.5% general sales tax to 6.5%. Property taxes are minimal but vary by county and property value.

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Written by

Retirees in USA Editorial Team

The Retirees in USA Editorial Team is dedicated to helping American seniors and pre-retirees navigate every stage of retirement with confidence and clarity. Our content is thoroughly researched using authoritative sources — including SSA.gov, Medicare.gov, AARP, the National Council on Aging, IRS.gov, and CDC.gov — and reviewed for accuracy, practical value, and relevance before publication. We cover healthy aging, retirement income, Medicare, Social Security, senior lifestyle, and everything in between. Our mission is simple: give real people real answers about the retirement questions that matter most. All content on Retirees in USA is editorially reviewed and verified before going live.
See our Editorial Policy for full details on how we work.

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4 comments on “12 States That Won’t Touch Your Pension, 401(k), or Social Security”

  1. This site is so hard to navigate. It always has interesting subjects so you click on but there are so many adds that you can never actually find the article. Which I will now unfollow.

    Reply

  2. I just moved from a state that won’t hurt my SS income to a state who may hurt me? I don’t make a whole lot so I’m considered poor. It could possibly change in my future and I see I will be hurt by my new state. Wonderful. I hate the state I left and returned to my birth state and they will hurt me every chance they get. Thanks for keeping me happy in my senior years, NOT! 😠

    Reply

  3. Is it really true about “Texas does not tax income. All income—including Social Security, pensions, and 401(k) and IRA distributions—is tax-free. This may help retirees save more money”? I think this is not fact, cannot talk about other states, I leave in Texas.

    Reply

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