Which states tax Social Security benefits?
The list of states that tax Social Security has been shrinking fast. Over the past five years, Missouri, Nebraska, Kansas, and West Virginia have all moved to phase out their Social Security tax. By 2026 fewer than ten states still tax benefits at all — and most of those exempt low- and middle-income retirees. Here's the current list and what each state actually does.
Dr. Ed Weir, PhD · 20 years inside Social Security · "Former" Sergeant, USMC
Updated April 2026
Which states tax Social Security benefits?
As of 2026, roughly 9 states still tax Social Security benefits in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia (phasing out). Most of these exempt seniors below their state-specific income thresholds. The rest — 41 states plus DC — don't tax Social Security at all.
When you're ready for Medicare — usually at 65
Free help from licensed Medicare advisors
State residency drives both Social Security and Medicare consequences. If you're considering a move at retirement, the Medicare side has its own quirks — Medigap rules, supplement rates, and network access change by state. Chapter Medicare can walk through it. Tell them Dr. Ed sent you.
Here's what to do.
If you're in one of the nine, the question is exactly when state tax kicks in. If you're considering moving, the question is what you'd actually save. Here's both.
1. 1. Confirm whether your state is on the list
If your state is NOT one of these 9, you owe no state tax on Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, West Virginia. The other 41 states plus the District of Columbia do not tax Social Security benefits at all.
If your state IS on the list, the next step is finding your state's senior exemption threshold. Most of the 9 exempt seniors below specific AGI levels. Some have phase-outs that gradually reduce the exemption as income rises.
AARP state-by-state SS taxation › ›2. 2. Find your state's exemption threshold
Each of the 9 states has its own rule. Colorado fully exempts retirees age 65+. Minnesota exempts up to $5,840 (single) or $7,460 (joint) from a full subtraction subject to federal AGI phase-outs. Connecticut exempts seniors below $75,000 single / $100,000 joint from any state Social Security tax. Each state's exemption is published on its state revenue website.
The single best resource is the AARP state-by-state guide — it's updated each year and links to the official state pages.
AARP state guide › ›3. 3. If you're considering moving, calculate the actual savings
Multiply your annual benefits by your state's effective tax rate to estimate the dollar savings of moving. For most retirees in the 9 taxing states, the actual state tax on Social Security ends up being only a few hundred dollars per year because of the senior exemptions. Don't move based on Social Security alone — run total state tax (income, sales, property) before deciding.
Kiplinger's state-by-state retirement tax map shows the full picture. A state that taxes Social Security but has lower property taxes can come out ahead. The headline doesn't tell the whole story.
Kiplinger state retirement tax map › ›4. 4. Don't relocate just to save state tax on Social Security
I've watched too many retirees move to Florida or Texas to dodge state tax — then end up missing family, healthcare networks, and the climate they expected. State Social Security tax is rarely large enough to drive a relocation decision on its own.
The move-for-tax math only works if your other state taxes (income, property, sales) also go down meaningfully. And tax savings have to outweigh the real cost of being far from people who'll help you when you need it. Run the numbers. Then run the human side.
Kiplinger retirement-friendly states › ›2026 state-tax facts
Which of these sounds more like you?
Your state, your income, and your filing status all matter. Find the situation that fits.
I live in a state with no state income taxNine states have no state income tax — Social Security automatically untaxed.
Alaska, Florida, Nevada, New Hampshire (interest/dividends only), South Dakota, Tennessee, Texas, Washington, and Wyoming impose no state income tax. By definition they don't tax Social Security either. There's nothing to do at the state level.
New Hampshire is a special case: it taxes interest and dividends but not earned income or Social Security. Effective 2025, that tax has been fully repealed, making New Hampshire effectively no-state-income-tax.
My state has income tax but doesn't tax Social SecurityMost states with income tax fully exempt Social Security from their tax base.
32 states with income tax don't include Social Security in their state taxable income at all. The list includes Arizona, Arkansas, California, Georgia, Illinois, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Carolina, Virginia, Wisconsin, and many more.
If you live in one of these, no special form is needed. The Social Security amount on your Form 1040 line 6b drops out before calculating state taxable income on your state return. Most state tax software handles this automatically.
I'm in one of the 9 taxing states but my income is modestSenior exemptions usually leave low- and middle-income retirees untaxed.
Most of the 9 states that still tax Social Security exempt seniors below specific income thresholds. Connecticut: $75,000 single / $100,000 joint. Minnesota: phase-out begins around $84,490 single / $108,320 joint (2025 AGI). Colorado: full exemption for retirees age 65+. Montana: state-specific subtraction.
If you're in one of the 9 with modest retirement income, your state tax on Social Security may be zero or near zero. Check your state's senior exemption and the AGI threshold before assuming you owe.
I'm in one of the 9 taxing states and my income is above the exemptionYou'll owe state tax on the same portion the IRS taxes — often less.
If your state AGI exceeds the senior exemption, your state usually taxes the same percentage that the IRS taxes (the up-to-85% from federal Worksheet 1). Some states cap their tax at the federal taxable amount; others apply a separate state percentage.
The state income tax rate is typically lower than federal — most state rates run 3 to 7%. So even a fully-taxable Social Security state bill is usually much smaller than the federal one. Run your state's tax form and the federal Form 1040 line 6b together to see the actual dollar impact.
I'm thinking of moving to dodge state Social Security taxRun total state-tax burden, not just Social Security, before deciding.
States that tax Social Security often have lower property or sales taxes. States with no income tax (Florida, Texas) often make up for it through higher property taxes or sales taxes. Total state-tax burden is the right comparison.
Before moving, run a year of pretend taxes in the destination state. Compare income tax + property tax + sales tax + vehicle registration in both states. Account for state-specific homestead exemptions and senior property-tax circuit breakers. The headline can deceive you.
I've seen retirees move to a no-income-tax state and end up paying $4,000 more in property tax than they would have at home. Their Social Security savings: $300/year. Run the full math before booking the moving van.
I split time between two states — which one taxes me?Your domicile (state of residency) controls. Spending more than half the year there usually establishes it.
Only your state of legal residency taxes your Social Security. "Domicile" is determined by where you spend most days, where you vote, where your driver's license is issued, and where your homestead exemption is. If you maintain primary residency in a no-tax state and visit a taxing state, only the residency state's rules apply.
But don't fudge it. State revenue departments audit dual-residency claims, especially for high-income retirees. If you claim domicile in Florida but spend 8 months in Connecticut, expect questions. The 183-day rule is a common trigger for state residency challenges.
I have rental income or business income in another state on top of Social SecurityMulti-state tax returns get layered fast — talk to a state-tax CPA or EA.
If you're earning income in one state while residing in another, you may need to file two state returns: a non-resident return for the source state and a resident return for your home state. The home state usually credits you for tax paid to the source state.
Social Security is sourced to your residency state regardless of where the income was earned. But the interaction with rental, partnership, or business income in another state can get technical. Get a CPA or EA who handles multi-state filings.
Multi-state tax planning is real tax planning, not lookup work. I can show you which 9 states tax Social Security and where to find each state's senior exemption. I can't tell you how to optimize a multi-state filing for your household — that's licensed advice. State CPA society directories are the right starting point.
I'm helping a parent figure out their state's ruleBystander — I'm not the one filing
Quickest path: search "[state name] department of revenue Social Security exemption." Most state revenue sites have a one-page summary of how the state taxes (or exempts) Social Security and the senior income threshold for full exemption.
If they're not in one of the 9 taxing states, there's nothing to file or worry about — their state takes nothing. If they are, the state's senior exemption usually leaves modest-income retirees untaxed.
Lower retirement income unlocks programs you haven't heard of.
Most state programs that supplement retirement income use state-specific income thresholds. If your federal Social Security tax is light, you may also qualify for state-level benefits.
Medicare Savings Program (MSP)
MSP eligibility uses federal Medicare/Medicaid rules, not state income-tax rules. Even retirees in states that tax Social Security may qualify for an MSP that covers Part B premiums.
Extra Help (Low Income Subsidy)
Extra Help is a federal SSA program with the same rules in every state. State Social Security taxation is irrelevant to Extra Help eligibility — if your federal income qualifies, the state doesn't matter.
Medicaid
Medicaid eligibility is set state-by-state. Some states are more generous (the 38 expansion states), some less (12 non-expansion states). State Social Security taxation is a separate question — a state can tax SS but still offer generous Medicaid.
SNAP (Food Benefits)
SNAP is federal but state-administered. Income limits are roughly the same nationwide, but the application process and supplemental benefits vary by state. The state's Social Security tax position doesn't affect SNAP eligibility.
LIHEAP (Energy Bill Help)
LIHEAP is federally funded but state-administered with state-specific income tiers. Some states with LIHEAP also tax Social Security, others don't — the two are unrelated.
Property Tax Relief
State and local property-tax exemptions for seniors are independent of state Social Security taxation. Even high-property-tax states often have generous senior homestead exemptions or circuit-breaker credits. Worth checking even in your current state.
Everything people ask me
Which states still tax Social Security in 2026?
As of 2026, roughly 9 states tax Social Security in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia (phasing out by 2026). The exact list shifts year-by-year as states pass exemptions — confirm yours on AARP's state guide or your state revenue site.
Which states have eliminated their Social Security tax recently?
Missouri eliminated theirs effective 2024. Nebraska eliminated theirs effective 2025 (phased out 2022-2025). Kansas eliminated theirs effective 2024. West Virginia is phasing it out by 2026. The trend has been steadily downward as states recognize the political appeal.
Do all 9 states tax Social Security the same way?
No. Each state has its own rule. Colorado fully exempts taxpayers age 65+. Connecticut exempts seniors below specific AGI thresholds. Minnesota uses a partial subtraction tied to federal AGI. Montana and Vermont mirror federal taxation but with their own exemptions. The details matter — don't assume your state's rule from another state's rule.
If my state taxes Social Security, do I owe on the same percentage the IRS taxes?
Often yes — most of the 9 states start from the federal taxable amount on Form 1040 line 6b and apply the state's senior exemption. So if 85% of your benefits is taxable federally, the state usually starts from that 85% and subtracts the state exemption. State income-tax rates are usually 3 to 7%, so the state bill is much smaller than the federal one.
Can I have state tax withheld from Social Security?
No. SSA does not provide state tax withholding from Social Security in any state. If you owe state tax on benefits, you'll need to make state quarterly estimated tax payments through your state's revenue department. Check your state's site for the estimated tax forms and due dates.
What about states with no income tax — do they tax anything?
Nine states have no state income tax and therefore no Social Security tax: Alaska, Florida, Nevada, New Hampshire (interest/dividends only, repealed 2025), South Dakota, Tennessee, Texas, Washington, and Wyoming. They typically make up for it with higher property tax (Texas, New Hampshire) or sales tax (Tennessee, Washington).
Should I move to a state that doesn't tax Social Security?
Run the total state-tax burden first. State Social Security tax for most retirees is a few hundred dollars per year because of senior exemptions. Property tax differences alone often dwarf the Social Security savings. Use a state-by-state retirement-tax calculator (Kiplinger has a good one) before deciding.
I'm a snowbird — which state taxes my Social Security?
Your domicile state. Domicile is your legal residency, determined by where you spend most of the year, where you vote, where your driver's license is, and where you claim a homestead exemption. Spending part of the year in a taxing state doesn't trigger that state's tax on your Social Security — unless you accidentally establish residency there.
Does the state tax my SSDI (disability) benefits?
Each of the 9 states applies its Social Security tax rule the same way to retirement and SSDI benefits — they don't distinguish. SSI (Supplemental Security Income) is never taxed at the state level because it's not in any state's tax base.
Where can I find my state's exact rule?
AARP publishes a state-by-state Social Security taxation guide at states.aarp.org/social-security-benefits-state-tax that's updated each year. For the official source, search "[state name] department of revenue Social Security" — most state revenue sites have a one-page summary or a publication number with the current rule and senior exemption thresholds.
Sources
Every figure and rule on this page is verified against primary sources. Last verified 2026-04-26.
- SSA does not offer state-tax withholding from Social Security benefits in any U.S. state; state tax must be paid via state quarterly estimates. —ssa.gov(verified 2026-04-29)
- Eight states tax Social Security benefits in some form for tax year 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. West Virginia completed its three-year … —taxfoundation.org(verified 2026-05-08)
- Missouri eliminated state tax on Social Security benefits effective for tax year 2024. —dor.mo.gov(verified 2026-04-29)
- Nebraska eliminated state tax on Social Security benefits effective for tax year 2025 (phased out 2022-2025). —revenue.nebraska.gov(verified 2026-04-29)
- Kansas eliminated state tax on Social Security benefits effective for tax year 2024. —ksrevenue.gov(verified 2026-04-29)
- Connecticut exempts Social Security benefits from state income tax for taxpayers with federal AGI below $75,000 (single) or $100,000 (joint). —portal.ct.gov(verified 2026-04-29)
- Colorado provides a full pension/annuity subtraction for Social Security benefits for taxpayers age 65 or older. —tax.colorado.gov(verified 2026-04-29)
- Minnesota allows a Social Security subtraction with phase-out beginning around $84,490 (single) and $108,320 (joint) for 2025 AGI. —revenue.state.mn.us(verified 2026-04-29)
- Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. —taxfoundation.org(verified 2026-04-29)
- New Hampshire's interest-and-dividends tax was fully repealed effective January 1, 2025. —revenue.nh.gov(verified 2026-04-29)
- West Virginia is phasing out its tax on Social Security benefits, with full elimination by 2026. —tax.wv.gov(verified 2026-04-29)
- Most states with income tax do not include Social Security benefits in their state taxable income (32 states plus DC fully exempt benefits). —states.aarp.org(verified 2026-04-29)
- SSI (Supplemental Security Income) payments are not federal taxable income, and because SSI is excluded from federal AGI, no state taxes SSI as state taxable income. —irs.gov(verified 2026-05-08)
- State residency for tax purposes is generally determined by domicile rules including the 183-day rule used by many states. —taxadmin.org(verified 2026-04-29)
- Most states that tax Social Security start from the federal taxable amount on Form 1040 line 6b before applying any state-specific senior subtraction. —states.aarp.org(verified 2026-04-29)
I'll let you know when the rules change.
States are dropping their Social Security tax one at a time. When the next state phases out, I'll send a one-line note.
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