In fact, some states impose a tax on the money you withdraw from Social Security. Luckily, if you’re looking for relief, you can move to Washington, D.C., or one of these 41 states that don’t tax Social Security: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming. If you’re wondering which states are best for retirees, GOBankingRates looked into which states have the lowest taxes.