Question 1233: Which states impose an income tax on Railroad Retirement benefits?
Answer: As of 2015, the following states do not have a Personal Income Tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
The following States have a Personal Income Tax but exempt Railroad Retirement Annuities:
Alabama, Hawaii, Illinois, Kansas, Kentucky ( for service before 1998), Louisiana, Massachusetts, Michigan (if born before 1946), New York, North Carolina, Oregon, Pennsylvania, & Tennessee
Many states with a personal income tax exempt all, or a portion of, Railroad Retirement, Social Security, federal, military, and civilian pensions, so check with the state agency administering the income tax program to find out the current law for that particular state.