Question 694: Can you tell me which states do not tax Railroad Retirement payments?
Answer: The following nine states do not have personal income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.
The following 14 states have personal income taxes but generally exempt retirement benefits from taxation: Alabama, Hawaii, Illinois, Kansas, Kenrucky, Louisiana, Massachusetts, Michigan, Mississippi, New York, North Carolina, Oregon, Pennsylvania and Wisconsin.
Other states with personal income taxes might exempt a portion of Railroad Retirement payments. If you live in a State not listed above, you should contact the State agency responcible for administering the income tax provisions for more information.