Thirteen states tax Social Security benefits, but most do not
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 tax rate and the income threshold that triggers taxation vary by state. If you live in any other state, your Social Security benefits are not subject to state income tax, though they may still be taxed by the federal government depending on your total income.
State taxation of Social Security is separate from federal taxation. The federal government taxes Social Security benefits based on your "combined income" — which includes your adjusted gross income, nontaxable interest, and half your Social Security benefits. State taxes work differently in each state that imposes them, with their own income thresholds and calculations. You may owe federal tax on your benefits while owing nothing to your state, or vice versa.
Key Takeaways
- Thirteen states tax Social Security: 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 tax rates, so the amount you owe depends on where you live and your total household income.
- State taxation of Social Security is separate from federal taxation; you can owe tax to one but not the other.
- Many states exempt or partially exempt Social Security for residents over a certain age, usually 55 or 62, so your age may determine whether you pay state tax on benefits.
How each state calculates Social Security tax
Colorado taxes Social Security as regular income with no special exemption, meaning benefits are subject to the state's standard income tax rate (which ranges from 4.4% to 5.55% depending on income level). Connecticut taxes benefits only if your total income exceeds $75,000 for single filers or $100,000 for joint filers; above that threshold, up to 75% of your benefits may be taxed. Kansas taxes all Social Security benefits as income but allows a deduction of up to $75,000 per person, so only income above that level is taxed.
Minnesota taxes Social Security using a formula based on your total income and age; residents 65 and older receive a larger exemption than younger recipients. Missouri taxes benefits but exempts residents 59 and older entirely. Montana taxes Social Security as income but allows an exemption that phases out as income rises. Nebraska taxes benefits as income but exempts residents 67 and older. New Mexico taxes benefits but exempts residents 65 and older. Rhode Island taxes benefits only if your total income exceeds $25,000 for single filers or $32,000 for joint filers. Utah taxes all benefits as income. Vermont taxes benefits using a formula similar to the federal system, based on combined income. West Virginia taxes benefits but exempts residents 62 and older.
Age-based exemptions reduce or eliminate state tax
Nine of the thirteen states that tax Social Security offer full or partial exemptions based on age. The most common threshold is age 62, used by Missouri and West Virginia. Colorado, Connecticut, Kansas, Minnesota, Montana, Nebraska, New Mexico, and Rhode Island have different age cutoffs or phase-out formulas. If you live in one of these states and reach the exemption age, you may stop owing state tax on your benefits even if you still owe federal tax.
The exemption usually applies automatically once you reach the may have access to age, but you should verify the exact rules in your state because the threshold, the percentage of benefits exempted, and how the exemption interacts with other income can vary. Contact your state's tax authority or revenue department to confirm whether you may have access to for an age-based exemption in your state.
Federal taxation of Social Security is separate
The federal government taxes Social Security benefits based on your combined income: your adjusted gross income plus nontaxable interest plus half 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. Above those thresholds, up to 50% of your benefits may be taxed; above $34,000 (single) or $44,000 (married filing jointly), up to 85% of your benefits may be taxed.
This federal calculation applies to everyone, regardless of state. You may live in a state that does not tax Social Security but still owe federal tax, or you may live in a state that taxes benefits but fall below the federal threshold and owe nothing to the federal government. The two systems do not interact; you calculate each separately.
How to find out what you owe in your state
If you live in one of the thirteen states listed above, contact your state's department of revenue or tax authority directly. Most states publish worksheets or online calculators that show whether your benefits are taxed and how much you may owe based on your income and age. The state tax authority can also tell you whether you may have access to for an age-based exemption or other deduction.
You can also consult a tax preparer or accountant who is familiar with your state's rules. Because the calculation depends on your specific income, filing status, and age, a professional can often identify deductions or exemptions you might miss. If you file taxes yourself, your state's tax form or instruction booklet will include a worksheet for calculating tax on Social Security benefits.
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 will no longer owe state tax on your benefits starting in the year you establish residency in the new state. You will still owe federal tax if your combined income exceeds the federal threshold. The reverse is also true: if you move to a state that taxes Social Security, you may begin owing state tax on your benefits even if you did not in your previous state.
Residency is usually established on January 1 of the year you move, so a move late in the year may affect your tax liability for the following year rather than the current one. If you are considering a move and want to understand the tax impact, contact the tax authority in both your current state and the state you plan to move to.
Frequently Asked Questions
Do I have to pay state tax on Social Security if I live in a state that taxes it?
Not necessarily. Most states that tax Social Security offer exemptions based on age or income. If you are 62 or older, you may may have access to for a full or partial exemption depending on your state. Even if you do not may have access to for an age exemption, your state may have an income threshold below which no tax is owed. Check your state's specific rules.
Can I reduce my state tax on Social Security by claiming deductions?
It depends on your state. Some states allow deductions or exemptions that reduce the amount of Social Security subject to tax. Kansas, for example, allows a $75,000 deduction per person. Others use age-based exemptions or income thresholds. Review your state's tax rules or speak with a tax preparer to see what deductions you may claim.
If I owe federal tax on Social Security, do I automatically owe state tax too?
No. Federal and state taxation of Social Security are separate systems with different income thresholds and calculations. You could owe federal tax but not state tax, or state tax but not federal tax, depending on your income and which state you live in. Calculate each separately.
What if I receive Social Security but do not file a tax return?
If you live in a state that taxes Social Security and your income is high enough to trigger state tax, you may be required to file a state return even if you do not file a federal return. Check your state's filing requirements. Some states have lower income thresholds for filing than the federal government does.
Does moving to a state without Social Security tax save me money?
It may, but only on state tax. You will still owe federal tax on your benefits if your combined income exceeds the federal threshold. Moving for tax reasons should account for other factors too, such as cost of living, property tax, and sales tax, which vary widely by state.