Taxation of pensions and annuities can vary considerably between states. Some states fully tax pension income while others provide full or partial exemptions. The IRS Publication 17 has details on each state’s approach to taxing pensions and annuities as of 2025. Common factors include the source of the pension (government, private, military, etc.), your age, and income thresholds. Be sure to review your state’s current laws or consult a tax professional.