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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.
Everyone pays federal income taxes --- that is, tax on wages or income, and most people also pay state income taxes as well. However, a minority of states --- Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming --- do not have state income taxes.tate taxes are collected and administered by the Department of Revenue in your state. For example, if you live in New York, the New Your Department of Revenue would be responsible for New York state taxes. The Internal Revenue Service collects and administers federal taxes.