Reference Question from Yahoo answers: "What states do not tax federal retirement income?" What about NC?

Does a list exist that accurately depicts those states that do not tax federal retirement income?

NC has a $4,000 exemption.
Federal tax on some, but not all of retirement income is a national tax. The law was passed during the 90's where there was a tie in the Senate. The Vice President, Al Gore cast the tie breaking vote in favor of this tax. In answer to your question, I don't believe any state can exempt this tax.
Dear Rick: Arizona exempts $2500 and I believe IL exempts all. Check IL and NC dept of revenue. This advice was prepared based on our understanding of the tax law in effect at the time it was written as it applies to the facts that you provided. Click on my profile to read more. Errol Quinn Enrolled Agent Master Tax Advisor