February 27, 2023 01:26 Updated Follow Pension income is taxed by the state in which you are a resident of at the time you receive it. If you have additional questions about your specific circumstances, please contact the Department of Revenue. Related articles I worked in Indiana six months. Then I worked six months in another state. How should I file my Indiana taxes? Do I have to figure county tax? Where do I go for tax forms? Why did I receive a tax bill for underpaying my estimated taxes? Can I file my Indiana individual income tax online?