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In this case, you might consider moving to a state that donât tax your Social Security and private pension income. Those 10 states are Alaska, Florida, Mississippi, New Hampshire, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming, according to Weiner. For the record, Weiner said many states may tax all you pension income, but if youâve worked for the state government, they may exempt it.
Source Taxes on Pensions. If you live in Florida and receive a pension from another state, you may wonder if you have to pay taxes on that income to the state where you earned the pension. Thanks to the federal Pension Source Tax Act of 1996, your pension is yours to enjoy tax-free if you're a Florida resident.lorida is one of a handful of U.S. states that does not charge state income taxes. If you live in Florida and receive a pension, the entire amount of your pension is yours to enjoy tax-free.