Which states tax teacher pensions?

If you live in Alabama, your pension is not subject to Alabama income tax.

Alaska has no state income tax. If you live in another state, that state may tax your pension.

Taxed by Arizona, but up to $2,500 a year of public pension income is subtracted.

Taxed by Arkansas, but at 59 1/2 or older you can exclude up to $6,000 of pension income ($6,000 each for spouses who both have pensions).

Not available if you use the low-income tax table.

California taxes the pension for California residents, and CalSTRS withholds California tax.

If you live outside California, California doesn't tax it.

Taxed by Colorado, but each person can exclude up to $20,000 a year at 55-64 and $24,000 at 65+.

The limit covers PERA, Social Security, other pensions and IRA payments combined.

Connecticut residents can subtract 50% of their TRB pension, or use a pension subtraction of up to 100% if income is under a limit.

You can't use both subtractions on the same income. Figures are from the 2025 CT-1040 instructions.

Taxed by Delaware, but each person can exclude up to $12,500 at 60 or older, or up to $2,000 under 60.

Florida law exempts FRS benefits from state, county and city taxes.

Georgia taxes it, but at 65+ up to $65,000 of retirement income can be excluded ($35,000 at 62-64).

The exclusion amounts come from a state audit summary, not TRS of Georgia. Check this year's amounts with the Georgia Department of Revenue.

Hawaii ERS says its pensions are not subject to Hawaii state income tax.

Hawaii's tax department instructions suggest the part tied to your own contributions may be taxable. Ask the tax department.

PERSI benefits are generally subject to Idaho income tax.

Idaho's Retirement Benefits Deduction doesn't list the PERSI Base Plan for school employees.

TRS pensions are not subject to Illinois income tax.

Our Indiana sources say the pension is taxed as ordinary income but say nothing about Indiana's own tax on it.

Iowa doesn't tax IPERS benefits if you're 55 or older on December 31, disabled, or a qualifying survivor.

This applies from tax year 2023.

KPERS benefits are not subject to Kansas income tax. Your contributions were taxed by Kansas when you made them.

Kentucky taxes only the part earned after Jan. 1, 1998, and only above a $31,110 pension exclusion.

Benefits of members who retired before Jan. 1, 1998 are fully exempt. Kentucky can change the exclusion amount. Our Kentucky data flags the current exclusion amount as still to be confirmed with the Department of Revenue.

Louisiana law exempts TRSL benefits from all state income tax.

Maine residents can deduct all or part of the pension, up to the year's top Social Security benefit ($48,216 for 2025).

The cap is reduced by Social Security you got, phases out at higher incomes, and changes each year. Check this year's figure.

Your TPS pension is subject to Maryland income tax.

Our SRA sources don't describe any Maryland pension exclusion. Ask a tax adviser whether one applies to you.

Your MTRS pension is exempt from Massachusetts income tax while you live in Massachusetts.

Michigan taxes MPSERS benefits. They are exempt from county, city and other local taxes.

TRA benefits are taxable Minnesota income, except the part that returns your after-tax contributions.

Minnesota's public pension subtraction is for pensions from work without Social Security; most coordinated TRA members don't qualify.

Mississippi PERS benefits are not subject to Mississippi state income tax.

Missouri taxes it, but its public pension exemption may let you deduct up to 100%, capped at the top Social Security benefit.

The PSRS handbook and a Missouri statute disagree on whether the benefit is taxed. Check dor.mo.gov to see if you qualify.

Montana taxes the pension. Its pension exclusion ended in tax year 2024.

At 65 and older there's a general $5,500 subtraction ($11,000 if both spouses are 65+) for tax year 2024. It is adjusted for inflation after that, and our sources don't give the newer amount.

NPERS says monthly benefits are subject to Nebraska income tax.

Nebraska's tax booklet lists no exclusion for school pensions, but we haven't seen a Revenue statement that says so directly.

Nevada has no personal income tax. State law also exempts PERS benefits from state and local taxes.

New Hampshire law exempts NHRS benefits from any state, county or local tax.

At 62+, NJ lets you exclude up to $75,000 (single) or $100,000 (joint) of retirement income, if under income limits.

Before then, NJ doesn't tax the pension until you've recovered your own contributions.

Taxed by New Mexico. At 65 or older you may exempt up to $8,000 each if your income is under a limit.

These are tax-year 2025 rules; the amounts may change.

Your NYSTRS benefit is exempt from New York State income tax.

Not taxed by N.C. if you had five or more years of service by Aug. 12, 1989. Otherwise the taxable part is taxed.

TFFR benefits are taxed by North Dakota as ordinary income.

North Dakota's return has no subtraction for TFFR or other public pensions.

Ohio residents owe Ohio income tax on STRS benefits. They're exempt from local taxes but may face school district income tax.

The first $10,000 of your pension each year is exempt from Oklahoma income tax, says TRS of Oklahoma.

This comes from a TRS newsletter, not a tax statute. Check with the Oklahoma Tax Commission.

PERS benefits are subject to Oregon income tax if you live in Oregon.

Some long-time Tier One members living in Oregon get a small 'tax remedy' increase in their benefit.

PSERS pensions are not subject to Pennsylvania state or local income tax.

Taxed by Rhode Island, but you can subtract up to $50,000 a year once you reach Social Security full retirement age, if under income limits.

This is the tax-year 2025 amount. A 2026 law changes how the limits are indexed from 2027.

Taxed by South Carolina, but you can deduct up to $3,000 a year before 65 and up to $10,000 from 65.

These are tax-year 2026 amounts.

South Dakota law exempts SDRS benefits from any state, county or local tax.

Our TCRS sources don't address Tennessee state income tax on benefits.

Our Texas data records only federal tax withholding, not whether Texas taxes the pension.

Utah taxes the part of your URS benefit that is federally taxable.

A $450 Utah retirement credit applies only if you were born on or before Dec. 31, 1952.

Our sources don't settle how Vermont taxes VSTRS benefits. VSTRS withholds Vermont tax, but an older state law reads as an exemption.

Your VRS benefit is subject to Virginia income tax if you live in Virginia.

Our VRS sources don't cover Virginia's own deductions or subtractions. Ask a tax adviser.

Washington law exempts TRS pensions from any state or local tax.

Taxed by West Virginia, but you can subtract up to $2,000 a year of TRS income at any age, more at 65+.

At 65 or older you may subtract up to $8,000 of any income, less the other retirement subtractions.

Taxed by Wisconsin, but at 67+ you can subtract up to $24,000 ($48,000 joint). A $5,000 break has age and income limits.

Members of the State Teachers Retirement System or Milwaukee Teachers Retirement Fund as of December 31, 1963 are fully exempt.

Wyoming law exempts WRS benefits from any Wyoming state or local tax.

State law exempts it, but the WRS handbook's wording is unclear about state tax. Our data flags this to confirm with WRS.