Thirteen states tax Social Security benefits, but most of the country does not
Whether you pay state income tax on Social Security depends entirely on where you live. Thirteen states currently tax at least some Social Security income: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The remaining 37 states and Washington, D.C. do not tax Social Security benefits at all, regardless of your income level.
The federal government does not tax most people's Social Security, but it does tax some. If your combined income — which includes half your Social Security benefits plus all other income — exceeds certain thresholds, you owe federal tax on up to 85 percent of your benefits. State taxation works differently in each of the 13 states that impose it, with different thresholds, exemptions, and tax rates.
Key Takeaways
- Thirteen states tax Social Security income: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
- Each state that taxes Social Security uses different income thresholds and exemptions, so the amount you owe varies by state and by your personal income.
- If you move to a state that does not tax Social Security, you stop owing state tax on those benefits even if you received them while living elsewhere.
- You can request federal tax withholding from your Social Security check, and some states allow you to request state withholding as well.
How each state calculates Social Security tax
The 13 states that tax Social Security do not all use the same rules. Some tax your benefits only if your total income exceeds a threshold; others tax benefits for all retirees but offer exemptions based on age or income. A few states have phased out their taxes or are in the process of doing so.
Colorado taxes Social Security for residents with federal adjusted gross income over $24,000 (single) or $32,000 (married filing jointly), but offers a tax credit that often eliminates the tax for most retirees. Connecticut taxes benefits only for residents with modified adjusted gross income over $75,000 (single) or $100,000 (married). Kansas exempts all Social Security benefits from state income tax as of 2023, though this exemption is scheduled to phase out. Minnesota taxes benefits for residents with household income over $85,770 (single) or $114,360 (married filing jointly).
Missouri exempts all Social Security benefits from state income tax. Montana taxes benefits for residents with modified adjusted gross income over $25,000 (single) or $32,000 (married). Nebraska taxes benefits for residents with federal adjusted gross income over $32,000 (single) or $52,000 (married). New Mexico exempts most Social Security benefits but may tax them for high-income retirees. Rhode Island taxes benefits for residents with modified adjusted gross income over $75,000 (single) or $100,000 (married). Utah taxes benefits for all residents but offers a tax credit that reduces or eliminates the tax for most. Vermont taxes benefits for residents with federal adjusted gross income over $32,000 (single) or $50,000 (married). West Virginia exempts all Social Security benefits from state income tax.
These thresholds and rules change periodically, and some states have recently passed laws to phase out or eliminate their Social Security taxes. Check your state's tax authority website for the most current rules.
How to find out what you owe in your state
The easiest way to learn whether you owe state tax on Social Security is to contact your state's tax authority directly. Most states have a website where you can search for Social Security tax rules, and many have telephone lines where staff can answer questions about your specific situation. Your state's Department of Revenue or equivalent agency is the authoritative source.
If you file a state income tax return, your state tax form will ask about Social Security income. The instructions that come with the form explain how to calculate taxable benefits under your state's rules. If you use tax preparation software, it will walk you through the calculation based on your state.
You can also contact Social Security directly at 1-800-772-1213 to ask whether your state taxes benefits, though Social Security staff cannot calculate your specific tax liability — that is a question for your state tax authority or a tax professional.
Withholding taxes from your Social Security check
You can request that the federal government withhold federal income tax from your Social Security benefits. To do this, fill out Form W-4V (Voluntary Withholding Request) and send it to your local Social Security office or mail it to the address listed on the form. You can choose to have 7, 10, 15, or 25 percent of your benefit withheld each month.
Some states also allow you to request state income tax withholding from your Social Security check. Contact your state tax authority to find out whether this option is available and how to request it. Not all states offer this, and the process varies by state.
Withholding is optional. If you do not request withholding, you may owe taxes when you file your return. Some people choose to withhold; others prefer to pay taxes in a lump sum at tax time or through quarterly estimated tax payments.
What happens if you move to a different state
If you move from a state that taxes Social Security to one that does not, you stop owing state tax on your benefits starting in the year you become a resident of the new state. Your Social Security benefits themselves do not change — only your state tax obligation changes based on where you live.
If you move from a state that does not tax Social Security to one that does, you begin owing state tax on your benefits starting in the year you become a resident. This is one factor some retirees consider when deciding where to retire, though state income tax is only one part of the overall cost of living.
Your residency for tax purposes is generally determined by where you live on December 31 of the tax year. If you move partway through the year, you may owe tax to both states for that year, though most states offer credits to prevent double taxation.
Federal taxation of Social Security benefits
The federal government taxes Social Security benefits for some people but not others, based on a calculation called combined income. Combined income is your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.
If your combined income is below $25,000 (single) or $32,000 (married filing jointly), you owe no federal tax on your benefits. If your combined income is between $25,000 and $34,000 (single) or $32,000 and $44,000 (married), you may owe federal tax on up to 50 percent of your benefits. If your combined income exceeds $34,000 (single) or $44,000 (married), you may owe federal tax on up to 85 percent of your benefits.
These federal thresholds have not changed since 1984 and are not adjusted for inflation, which means more people owe federal tax on Social Security than in the past. State taxes are separate from federal taxes, so you could owe both.
Frequently Asked Questions
Do I have to file a state tax return if I only have Social Security income?
That depends on your state and your income level. Most states that tax Social Security have filing thresholds — if your income is below that threshold, you do not have to file. Contact your state tax authority to find out the threshold for your situation. Even if you are not required to file, you may want to if you had taxes withheld, because you could receive a refund.
Can I reduce my state tax on Social Security by moving?
Yes. If you move to a state that does not tax Social Security, you will owe no state tax on those benefits starting the year you move. However, moving involves many costs and considerations beyond taxes. Some states that do not tax Social Security have higher property taxes or sales taxes, so the overall tax burden may not be lower.
What if I worked in one state but now live in another — which state taxes my benefits?
The state where you currently live taxes your Social Security benefits (or does not), regardless of where you worked or where you earned the benefits. Your residency for tax purposes is based on where you live now, not where you worked.
If my state taxes Social Security, can I deduct it from my federal taxes?
No. State income taxes are not deductible on your federal return unless you itemize deductions, and even then, state income tax deductions are subject to a $10,000 annual cap. For most people, the standard deduction is larger than itemized deductions, so state taxes on Social Security do not reduce your federal tax bill.