5 States That Don’t Tax Pension Income in the US

2. New Hampshire 

Individual Income Tax Rate: 3%

Statewide Sales Tax Rate: 0%

Property Tax Rate: 1.61%

Combined State Sales & Property Tax Rate: 1.61%

New Hampshire has a flat 3% individual income tax rate levied only on interest and dividends income. The state doesn’t impose income taxes on social security and other retirement income. New Hampshire does not have a sales tax and charges a 1.61% tax on property. New Hampshire is one of the best states that don’t tax pension income in the US.