Thirteen states tax Social Security benefits, though most offer partial or full exemptions based on age or income

If you receive Social Security and live in Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, or West Virginia, your state may tax part or all of your benefits. However, most of these states have built-in exemptions — typically for people over 59 or 62, or for households below certain income thresholds. The amount you actually owe depends on your total income, your age, and which state you live in.

The federal government does not tax Social Security for most people, but your state can. This creates a patchwork where your tax bill depends entirely on where you live. If you are planning to retire or have recently moved, understanding your state's specific rules matters because the difference between states can be hundreds of dollars per year.

Key Takeaways

  • Thirteen states tax Social Security benefits, but most exempt people over a certain age or with income below a threshold.
  • Colorado, Kansas, and Nebraska tax Social Security the same way they tax other income, with no special exemptions.
  • Connecticut, Minnesota, Missouri, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia offer full or partial exemptions based on age or income level.
  • Your state tax bill depends on your total income (including Social Security), your filing status, and whether you meet your state's exemption criteria.

States with no exemptions for Social Security

Three states tax Social Security with no age or income exemptions: Colorado, Kansas, and Nebraska. In these states, Social Security counts as taxable income just like wages or pension payments. Your state tax rate applies to your benefits the same way it applies to other income.

Colorado taxes Social Security at its regular income tax rate, which ranges from 4.4% to 8.75% depending on your total income. Kansas and Nebraska also use their standard income tax brackets. If you live in one of these states and receive Social Security, you will need to report it on your state return and pay tax on the full amount unless you fall below the state's income threshold for filing altogether.

States that exempt Social Security based on age

Connecticut, Missouri, Montana, and Vermont exempt Social Security benefits for people who reach a certain age. Connecticut and Vermont exempt all Social Security for people 62 and older. Missouri exempts it for people 59 and older. Montana exempts it for people 62 and older.

If you are younger than the exemption age in your state, you will owe tax on your Social Security benefits. Once you reach the age threshold, your benefits are no longer taxable income in that state. This means your tax bill can drop significantly on your birthday if you live in one of these states.

States that exempt Social Security based on income

Minnesota, New Mexico, Rhode Island, and Utah allow you to exclude Social Security from state taxable income if your total income falls below a certain level. The income limit varies by state and by filing status (single, married filing jointly, etc.).

Minnesota exempts Social Security for single filers with federal adjusted gross income below $32,110 and married couples filing jointly below $41,210 (these figures are for 2024 and change yearly). New Mexico exempts it for single filers below $25,000 and married couples below $32,000. Rhode Island and Utah have their own thresholds. If your income exceeds the limit, you may owe tax on part or all of your benefits. Contact your state tax authority or a tax preparer in your state to find the current year's limits.

States with partial exemptions or complex rules

Kansas and Nebraska technically tax Social Security but allow a deduction for a portion of benefits received. West Virginia taxes Social Security but exempts it for people 59 and older with income below $20,000 (single) or $25,000 (married filing jointly). These rules are narrower than the full exemptions in other states, so you may still owe tax even if you meet some criteria.

The rules in these states can shift year to year, and income thresholds are adjusted annually for inflation. If you live in one of these states, your best approach is to check your state's tax department website or speak with a tax preparer who knows your state's current rules, because the difference between owing nothing and owing several hundred dollars often comes down to whether you meet a specific income threshold.

How to find out what you owe

Start by identifying which state you lived in on December 31 of the tax year. That is the state where you file, even if you moved during the year. Then visit your state's tax department website and search for "Social Security" or "retirement income." Most state tax websites have a page explaining which benefits are taxed and which are exempt.

If your state taxes Social Security, you will report it on your state income tax return. Some states ask you to report the full amount and then claim an exemption or deduction; others ask you to report only the taxable portion. The exact process depends on your state's form. If you use tax software, it will usually walk you through the state-specific rules. If you file by hand or with a preparer, bring your Social Security statement (Form SSA-1099) and your state's tax instructions.

What happens if you move to a different state

If you move from a state that taxes Social Security to one that does not, or vice versa, your tax situation changes immediately for the new tax year. You file in your new state starting January 1 of the year after you move. Some states allow you to claim a credit for taxes paid to another state, but this does not eliminate the tax in your new state if it taxes Social Security.

If you are considering retirement and state taxes matter to you, moving to a state with no Social Security tax (such as Florida, Texas, or Wyoming) or to one with a full exemption can reduce your tax bill. However, state income tax is only one factor — consider property taxes, sales taxes, cost of living, and proximity to family before making a move solely for tax reasons.

Frequently Asked Questions

Do I have to pay federal tax on my Social Security?

Most people do not. However, if your combined income (Social Security plus wages, pensions, and other income) exceeds certain thresholds, up to 85% of your benefits may be subject to federal tax. Your state tax situation is separate from federal tax.

If I live in a state that taxes Social Security, do I pay tax on the full amount?

Not necessarily. Most states that tax Social Security offer exemptions based on age or income. Even in states with no exemptions, you only pay tax on the amount that exceeds your state's filing threshold. Check your state's specific rules to see whether you may have access to for an exemption.

What if I receive both Social Security and a pension?

Your state treats them separately. Social Security may be exempt or taxed depending on your state's rules, while your pension is usually taxed as regular income. Your total income from all sources determines whether you meet any income thresholds for exemptions.

Can I reduce my state tax by moving before I retire?

Yes, but only if you actually move and establish residency in the new state before you start receiving Social Security. You cannot claim residency in a state where you do not live. If you are considering a move, establish your new address, get a driver's license, and register to vote there before your benefits begin.

Where do I report Social Security on my state tax return?

The location depends on your state's form. Most states have a specific line or schedule for retirement income or Social Security. Your state tax instructions will tell you where to report it. If you use tax software, it will prompt you for the amount and place it in the correct location automatically.