Retirement income taxes by state

This rests on a search, not on a ban. We found no local government in Alaska levying an income, wage or payroll tax for tax year 2026: the Census of Governments records none of 180 Alaska local governments with an individual income tax amount (fiscal year 2022), and the state statutes we read name no such tax. The state constitution lets the state delegate taxing powers to organized boroughs and cities only; state law gives all municipalities, subject to other provisions of law, the general power "to levy a tax or special assessment, and impose a lien for its enforcement", and a home rule borough or city has all legislative powers not prohibited by law or charter, its charter taking effect, once a majority of those voting approve it, on the date the election is certified.

A state statute bars every county, city, town and other political subdivision from levying an income tax, for as long as the state maintains its urban revenue sharing fund, which current law establishes (A.R.S. §§ 43-201 and 43-206). A charter county's taxing power is subject to state law, so the ban binds it too. No local tax on wages or payroll under another name exists either; for that part this rests on a search, not on a ban: no state law we read lets a local government levy one, the general powers we read name none, and the Census count for fiscal year 2022 shows no Arizona local government with an individual income tax.

A state statute forbids it: Arkansas Code § 26-73-103(a)(2)(B), added by Act 96 of 2023, says "A county, municipality, or other local government shall not levy a tax on income," and the same act repealed the two earlier laws that had let a city of the first class (§ 14-43-607) and a local government (§ 26-73-104) levy an income tax. Counties and municipalities keep a general power to "levy any tax not otherwise prohibited by law", subject to adoption at an election, but the ban takes a tax on income out of it. The ban reaches a tax on income; for a payroll tax or a wage-measured tax not framed as a tax on income, this rests on a search, not on a ban, and we found no local government levying one for tax year 2026.

San Francisco levies a tax on certain large businesses measured by their San Francisco payroll expense: the Administrative Office Tax, 1.47% for 2025, on a business with more than 1,000 U.S. employees and over $1 billion in gross receipts that mainly provides administrative or management services to itself and its related entities, with an added Overpaid Executive tax; it falls on the business, not on a resident's pension or other retirement income. No local government may tax a person's income: Revenue and Taxation Code § 17041.5 forbids every city, county, district and other local body, chartered or not, to levy or collect any tax upon the income of any person, saving only an otherwise authorized license tax on a business measured by gross receipts; a city may license businesses for revenue (Government Code § 37101), and the constitution requires voter approval of any local tax. We found no other local government levying a tax on income, wages or payroll for 2026.

This rests on a search, not on a ban. We found no local government in Florida levying an income, wage or payroll tax for tax year 2026. The state constitution lets counties, school districts, municipalities and special districts levy taxes other than ad valorem taxes only as they "may be authorized by general law", and preempts "all other forms of taxation" to the state "except as provided by general law"; a Florida municipality, "subject to the prohibitions in s. 377.8161" (a statute on net-zero energy policies), "may raise, by taxation and licenses authorized by the constitution or general law", and a county's power to "levy and collect taxes", "excluding the prohibitions in s. 377.8161", is exercised "subject to such limitations, as may be provided by general law"; in the state statutes we read we found no general law authorizing a local tax on income, wages or payroll. Separately, the state constitution bars a tax on the income of natural persons who are residents or citizens of the state, levied by the state or under its authority, only "in excess of" the amounts that may be credited upon or deducted from a similar federal or other-state tax.

A state statute forbids it: Georgia Code § 48-7-140, enacted in 2010, says "On or after May 20, 2010, there shall be no local income taxes whatsoever levied or collected by any political subdivision of this state, and no local income tax returns shall be required," and the same act repealed the law that had let a city adopt one. A county or city may tax only as the constitution or a general law allows, and a separate statute bars a city from taxing an individual for the privilege of working or being employed in it unless a general law authorizes it or the city levied such a tax on January 1, 1980; we found no city levying one. Cities and counties do levy an occupation tax on businesses and professional practices, measured by gross receipts, profitability, employees or a flat fee, which is a tax on a business, not on a person's wages or retirement income.

Every Indiana county levies a local income tax on the same income the state taxes, Indiana adjusted gross income after the state's own deductions and exemptions, so each answer above holds for the county tax too; only the rate is the county's, set by ordinance. Under IC 6-3.6 the county's adopting body 'may impose a tax under section 2 of this chapter on the adjusted gross income of local taxpayers in the county served by the adopting body' (IC 6-3.6-6-1; section 2 'applies to all counties'); 'A tax is imposed on the adjusted gross income of local taxpayers at a tax rate that is a sum of the tax rates imposed by the county's adopting body and in effect in the county' (IC 6-3.6-4-1(a)); 'Adjusted gross income' 'has the meaning set forth in IC 6-3-1-3.5' (IC 6-3.6-2-2, with its exceptions: a local taxpayer who is not a resident of the county is taxed only on adjusted gross income from the principal place of business or employment, a resident of Perry County excludes income described in IC 6-3.6-8-7, and a team member or race team member only on compensation for services in the county); and the state income tax law's provisions on 'deductions or exemptions from adjusted gross income' apply to it (IC 6-3.6-8-5(a); by (b), IC 6-3-3-3, IC 6-3-3-5 and IC 6-3-5-1 do not). A local taxpayer is a person who resides in the county on January 1, or who maintains a principal place of business or employment there on that date and does not reside in another Indiana county in which the tax is in effect (IC 6-3.6-2-13; IC 6-3.6-8-3(b)). The adopting body is the county fiscal body or, in a county that had the former county option or county economic development income tax in effect on January 1, 2015, a local income tax council of the county's and each city's and town's fiscal bodies (IC 6-3.6-3-1), acting by ordinance (IC 6-3.6-3-2(a)). The Department of Revenue states that 'All counties will have a LIT rate'. No city or town may impose a rate of its own before 2029: IC 6-3.6-6-22 lets the fiscal body of a city or town of 3,500 or more do so only 'Beginning after December 31, 2028'. A county, city, town or township has no power to tax except as a statute expressly grants it (IC 36-1-3-8(a)(4): a unit does not have 'The power to impose a tax, except as expressly granted by statute'; a unit is a county, municipality or township, IC 36-1-2-23), and we found no grant of a tax on income, wages or payroll to a township, school corporation or special district in the articles we read (IC 6-3.6; the chapter lists of IC 6-3.5 and IC 6-9).

This rests on a search, not on a ban. We found no Mississippi local government levying an income, wage or payroll tax for tax year 2026, and the Census Bureau's FY2022 count shows none of 918 Mississippi local governments with an individual income tax. The state legislature's home-rule statutes give county boards of supervisors power over "county affairs, property and finances" and municipal governing authorities power over "municipal affairs, property and finances", but each section says it does not authorize them to levy taxes (counties: "other than those authorized by statute"; municipalities: "of any kind") unless "specifically authorized by another statute or law of the State of Mississippi", and we found no statute that authorizes a local tax on income, wages or payroll; a 2003 bill to "authorize certain cities to levy a local income tax" died in committee. The local privilege license tax that state law tells counties and municipalities to "levy, assess and collect" falls on businesses for "the privilege of engaging or continuing in the business", scaled by number of employees, not on an employee's wages or retirement income.

This rests on a search, not on a ban. We found no local government in Nevada levying an income, wage or payroll tax for tax year 2026. The state constitution forbids an income tax upon the wages or personal income of natural persons, and that ban binds the state and every local government alike; it leaves taxes on the income or revenue of a business conducted for profit in the state, in whatever form, open (with one exception the constitution names, its property tax clause), and by statute a county or city may impose a tax only as a statute or city charter expressly authorizes. The statutes we read let a city impose a license tax on the trades, callings, occupations, professions and businesses within the city, and a county on those conducted in the county outside its incorporated cities and towns, each grant with exceptions the statutes name, a tax a natural person carrying on a business there may owe and one that state law lets a city or county measure by the business's gross revenue; none is measured by a person's wages or personal income, and none reaches the kinds of income this page names.

These answers cover personal investments; business profits, including a sole proprietor's gains on business assets, can be taxed under New Hampshire's 7.5% business profits tax.

This rests on a search, not on a ban. We found no New Hampshire local government levying an income, wage or payroll tax for tax year 2026 in the listed sources; the supplied FY2022 Census count shows none of 534 local governments reporting individual income tax. The constitution grants the General Court proportional and reasonable taxing power, and RSA 31:4 allows lawful municipal appropriations while RSA 76:5 directs assessment of state, county and lawfully voted local taxes; those provisions do not identify a local income tax. RSA 72:1 imposes a flat $10 resident tax on inhabitants from 18 to 65 years of age, with statutory exemptions; a town or city may vote not to assess, levy and collect it under RSA 72:1-c. It is measured by no income, wages or payroll.

This rests on a ban for cities, towns, townships and counties, and on a search for every other local government and for a wage or payroll tax under another name. State law says: 'No city, town, township, or county shall levy any tax on income or inheritance.' For the local governments that clause does not name (a regional transportation authority, a special district, any other local unit), and for a tax on wages or payroll under another name, we found no local government levying one for tax year 2026: the Census of Governments FY2022 file shows none of 945 North Carolina local governments with an individual income tax amount; a county or city may tax only as an act of the state legislature specifically authorizes, and a regional public transportation authority's 'additional revenue sources ... must be approved by the General Assembly'; we found no act of the state legislature authorizing a local tax on income, wages or payroll. The state constitution caps the rate of any 'tax on incomes' and forbids any 'poll or capitation tax' by the state legislature or 'any county, city or town, or other taxing unit'; neither clause grants or bars a local income tax.

This rests on a search, not on a ban. We found no Rhode Island local government levying an income, wage or payroll tax for tax year 2026, and no state law that lets one: the state constitution's home-rule article says that nothing in it "shall be deemed to grant to any city or town the power to levy, assess and collect taxes or to borrow money, except as authorized by the general assembly"; the state legislature's general grant lets towns and cities "raise by a tax on real or personal estate, or on both", "provided, that the tax is voted on at a legal meeting of the electors of the town or city"; and the personal income tax in the General Laws is the state's own, imposed "on the Rhode Island income of every individual, estate, and trust". State law also lets a city or town levy a tourism improvement district assessment on businesses in the district, which "may be based on a percent of gross business revenue, a fixed dollar amount per transaction, or any other reasonable method based upon benefit, and approved by the municipality"; such assessments fall on businesses, not on an employee's wages or a person's retirement income.

This rests on a search, not on a ban. We found no local tax on personal retirement or investment income, employee wages or payroll for tax year 2026 in the listed sources; the supplied FY2022 Census count shows none of 650 local governments reporting individual income tax. Counties and municipalities may levy business-license taxes measured by business gross receipts or gross revenue: section 6-1-400(E)(1)(a) defines that measure, and section 6-1-315(A) requires an ordinance adopted by a positive majority vote. Those grants do not establish a tax on an employee's wages or personal retirement receipts. Section 6-1-310 bars a county, municipality or special purpose district from a tax it had not enacted by December 31, 1996 unless specifically authorized by the General Assembly; it preserves existing taxes and express legislative grants, and is not a ban on every local income tax.

This rests on a search, not on a ban. We found no local government in South Dakota levying an income, wage or payroll tax for tax year 2026. State law lets any incorporated municipality impose any non-ad valorem tax, defined as any tax other than an ad valorem real property tax, in accordance with the provisions of its chapter, except upon fuel used for motor vehicles, by ordinance enacted by its local governing board (with one condition: a tax on the sale, use, storage and consumption of items taxed under the state's sales and use tax chapters must conform in all respects to the state tax on those items, with the exception of the rate, and that rate may not exceed two percent); such a tax may be referred to a vote of the people, and a separate statute bars any county, city or other governmental unit, unless a statute specifically provides otherwise, from enacting a tax similar to a tax which provides revenues to the state (taxes enacted and imposed on or before March 1, 1996 excepted).

This rests on a search, not on a ban. The state constitution's ban on an individual income tax names only the state legislature, and we found no local government levying an income, wage or payroll tax for tax year 2026. One statute, Transportation Code §451.401, lets a metropolitan rapid transit authority — Houston, San Antonio, Austin, Corpus Christi — "impose any kind of tax except an ad valorem property tax." For a tax on income, wages or payroll, its board must first adopt a tax code and voters must approve the tax in an election (§§451.402–451.403). The same goes for a district such an authority creates (§451.707(d)); San Antonio has the only one. None has; each levies only a sales tax. The state constitution also lets cities of more than 5,000 people levy "such taxes as may be authorized by law or by their charters" (art. XI, §5), and no charter may hold a provision "inconsistent with the Constitution of the State, or of the general laws." We did not read city charters; no Texas city reported an individual income tax in the Census Bureau's 2022 count of local governments.

Seattle taxes employers on payroll; pensions, retirement-account withdrawals and Social Security aren't payroll.

A state statute, W.S. 39-12-101, preempts for the state the field of imposing and levying income taxes, earning taxes, or any other form of tax based on wages or other income, and provides that no county, city, town or other political subdivision shall have the right to impose, levy or collect such taxes.