Planning to retire? Here's what you need to know about taxes. 13 states don't tax retirement income at all—Alaska, Florida, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming. Additionally, 9 states have zero income tax entirely (though New Hampshire taxes dividends until 2025). If Social Security is your main income stream, you're in luck: 41 states plus D.C. don't tax it. Only 9 states do—Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The average retiree gets around $1,979/month ($23,750/year) from Social Security. Pro tip: Set up a my Social Security account to estimate your benefits. Just remember—state taxes are only half the story. The feds still tax most of us, and you'll need multiple income streams (dividends, pensions, withdrawals) for a solid retirement plan. Also worth noting: Social Security's funding is tightening, so don't count on it being your only lifeline.