topic Pension in State tax filing

Pension

mbok63 — Wed, 25 Mar 2026 19:04:58 GMT

I am a teacher in a public school in Illinois. If I decide to move to North Carolina after I retire in 3 years, will I have to pay NC's state tax on my pension?

Re: Pension

xmasbaby0 — Wed, 25 Mar 2026 19:36:21 GMT

Yes----if NC taxes retirement income you will pay state tax to NC for your pension. You are subject to the tax laws of the state that you live in. NC does not tax Social Security but it does tax other kinds of retirement income.

Re: Pension

Vanessa A — Wed, 25 Mar 2026 19:37:03 GMT

Yes. If you are living in NC while you are receiving your pension, then your pension would be taxable by North Carolina. NC does tax pension income, unless specifically excluded. Pensions from other state teacher associations are not excluded.

"The exclusion applies to retirement benefits received from certain defined benefit plans, such as the North Carolina Teachers' and State Employees' Retirement System, the North Carolina Local Governmental Employees' Retirement System, the North Carolina Consolidated Judicial Retirement System, the Federal Employees' Retirement System, or the United States Civil Service Retirement System, if the retiree had five or more years of creditable service as of August 12, 1989."