Thirteen U.S. states do not tax retirement income in 2026, offering major savings for retirees. Nine states have no income tax, while four exempt Social Security, pensions, IRAs, and 401(k) withdrawals. While 41 states now offer some form of Social Security relief, these "Elite 13" offer a rare 100% exemption across all major retirement income streams. Social Security alone replaces roughly 40% of pre-retirement earnings for middle-income workers. However, higher property taxes, sales taxes, and living costs still shape the real retirement math.