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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.
In retirement or out of it, if you move across state lines, your taxes can become complicated. If you have pension income from the state you retired in and you then move somewhere else, you might have to pay tax on your pension to both states -- or to neither state.If you pay tax on income from one state while living in another, ask your state of residence for a tax credit to prevent double taxation.our specific situation will depend on the laws of the states involved. New York, for example, doesn't tax most types of pensions and annuities, so if your pension comes from a New York employer, you're off the hook. If you move from New York to Florida, Florida has no income tax, so you don't pay there either.