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.

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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.