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States exempting a portion of pension income include: Arkansas, Colorado, Delaware, Georgia, Hawaii, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Missouri, Montana, New Jersey, New Mexico, New York, Oklahoma, South Carolina, Utah, Virginia and Wisconsin.
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.