This article takes a look at the 10 states that won’t tax Social Security Income in 2024. If you wish to check out our detailed analysis on navigating Social Security, you may go to 41 States That Won’t Tax Social Security Income in 2024.
10. Florida
Insider Monkey Score: 52
Cost of Living Index: 100.7
Tax Friendliness: Very Tax Friendly
Florida, the Sunshine State, is known for being very tax-friendly for retirees. There is no state income tax here, which means all retirement income at the state level goes to retirees tax-free. The cost of living is 0.7% higher than the national average. However, there are many cities and towns within the state that have a lower cost of living.
9. Michigan
Insider Monkey Score: 52
Cost of Living Index: 90.6
Tax Friendliness: Tax Friendly
There is no tax on Social Security retirement benefits in Michigan, and there are deductions available on other types of retirement income. By tax year 2026, pensions and income from 401(k) and IRA withdrawals will be fully exempt from state income tax.
8. Tennessee
Insider Monkey Score: 53
Cost of Living Index: 90.3
Tax Friendliness: Tax Friendly
Ranking in the top ten in our list of States that won’t tax Social Security is Tennessee. With a cost of living that is almost 10% lower than the national average and a tax-friendly environment for retirees, moving to this state makes sense for seniors especially those on a fixed income.
7. Arkansas
Insider Monkey Score: 55
Cost of Living Index: 89
Tax Friendliness: Tax Friendly
Next up on our list is the state of Arkansas. The state boasts a cost of living that is 11% lower than the national average and is also tax-friendly for retirees.
6. Alabama
Insider Monkey Score: 57
Cost of Living Index: 88.3
Tax Friendliness: Tax Friendly
The state of Alabama also doesn’t tax your Social Security retirement benefits. However, withdrawals from retirement income are taxed. Public and private pension income isn’t taxed.
5. Oklahoma
Insider Monkey Score: 59
Cost of Living Index: 86.2
Tax Friendliness: Tax Friendly
Oklahoma doesn’t tax Social Security benefits, military pensions, or railroad retirement benefits.
4. South Dakota
Insider Monkey Score: 61
Cost of Living Index: 92.4
Tax Friendliness: Very Tax Friendly
South Dakota does not have a state income tax. Therefore, retirees get to enjoy their Social Security benefits and other types of retirement income tax-free.
3. Wyoming
Insider Monkey Score: 61
Cost of Living Index: 92.4
Tax Friendliness: Very Tax Friendly
Another very tax-friendly state, Wyoming doesn’t have an income tax, which is why all Social Security benefits and retirement income at the state level goes to retirees tax-free.
2. Georgia
Insider Monkey Score: 68
Cost of Living Index: 90.8
Tax Friendliness: Very Tax Friendly
Bagging the 2nd position, Georgia doesn’t tax Social Security retirement benefits, is overall tax-friendly, and also has a low cost of living.
1. Mississippi
Insider Monkey Score: 75
Cost of Living Index: 86.3
Tax Friendliness: Very Tax Friendly
Mississippi, the star state of many of our lists, is known for being very tax-friendly towards retirees. All forms of retirement income in the state are exempted from taxation. The state also flaunts a cost of living that is 13.7% lower than the national average.
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