States That Won’t Tax Your Federal Retirement in 2023

As a federal employee you will normally have at least these sources of income:

Your Pension
TSP (Thrift Savings Plan)
Social Security

And most of the time, all three of these will be taxed on the federal level (at least to some degree) but if they are taxed on the state level will depend on where you live and what income source it is.

These lists break it down.

States That Won’t Tax Your Social Security Income

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

States That Won’t Tax Your Pension Income

Alaska
Florida
Nevada
South Dakota
Tennessee
Texas
Washington
Wyoming
New Hampshire
Alabama
Illinois
Hawaii
Mississippi
Pennsylvania

(Some states, such as New York, don’t tax federal pensions but do tax some private pensions.)

States That Won’t Tax Your TSP Income

Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
Illinois
Mississippi
Pennsylvania

States That Don’t Have State Income Taxes

Alaska
Florida
Nevada
New Hampshire (earned wages only)
South Dakota
Tennessee
Texas
Washington
Wyoming

States That Don’t Have Sales Tax

Alaska
Delaware
Montana
New Hampshire
Oregon

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Dallen J. Haws, CFP®, MBA

CEO and Lead Planner

Dallen is one of the most sought after federal retirement experts in the country.

He routinely speaks/consults with thousands of federal employees about their benefits and retirement. He is a self-professed nerd about helping those under FERS to maximize benefits, reduce taxes, and retire confident.

He is a regular contributor to Govexec and FedSmith and many other federal employee new sites.

When he is not perfecting retirement plans, you can find him training for triathlons or going on adventures with his family.

Common Questions

What do you do?

We are the go-to financial planning firm/financial advisors for FERS federal employees all around the country (and the world). We help our clients maximize their benefits, reduce taxes, and retire confident.

Who do you serve?

We serve FERS federal employees everyday, all day, and twice on Sunday. We eat and breath federal benefits and are proud to be the go-to financial planners for FERS federal employees all around the world.

How do you make money?

We are a commission-free (a.k.a. fee-only) financial planning firm for FERS federal employees. Our fees depend on the complexity of your situation but our fees are always very transparent. Some financial advisors are commission-based, which may cause fees to be hidden or create conflicts of interest. Not us. Our goal is to lower your taxes, maximize your benefits, and make sure you can retire without worry. For more info about our fees, click here.

Can you meet virtually and work with people in other locations?

Yep! We work with people from all over the U.S. as well as many federal employees who are stationed overseas.

What areas do you help your clients with?

Great question. Here are the 5 areas that we help our clients with:

-Retirement Planning: Planning for the day when work is optional

-Investment Planning: Building wealth for your future

-Tax Strategy: Taking advantage of opportunities in the tax law

-Insurance Planning: Protecting your loved ones and what you’ve already built

-Estate Planning: Planning for those you leave behind

One thing we found that clients really appreciate is that no other financial advisor is able to help them with their federal benefits as well as the rest of their financial lives like we can.

Disclosures