5 States that Don’t Tax Pensions AND Social Security

3. Tennessee

For now, residents of Tennessee are only required to pay taxes on their income from dividends and interest; pension and social security is exempt. In 2021, even these incomes will not be taxable.

2. Texas

One of the biggest states in the US by both land mass and population, Texas does not have a state income tax, thereby exempting both pension and social security.