No, pensions may be taxable
in your resident state but they are not taxable to the state that you used to
live and work in.
On Jan. 10, 1996, Congress
enacted the Pension Source Tax Act of 1996 (P.L. 104-94). This law specifically
stipulates that, "No State may impose an income tax on any retirement
income of an individual who is not a resident or domiciliary of such State."
While the Source Tax law still allows individual states to define residency on
their own terms, it prohibits any state from taxing non-residents for pensions
earned within the state. If you earn a pension in Vermont, for instance, then
retire to New York, Vermont may not tax your pension income.
See Limitation on State Income Taxation of
Certain Pension Income for additional
information
