Social Security is taxed in 13 states, but only if your income crosses a threshold that varies by state and filing status

Most states do not tax Social Security benefits. However, Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia do tax at least some portion of benefits. The amount you owe depends on your total income in that state, not just your Social Security check.

The federal government taxes Social Security benefits based on your "combined income" — which includes wages, pensions, investment income, and half your Social Security benefits. States that tax benefits use similar or different formulas. Some states tax benefits the same way the federal government does. Others have their own rules about what counts as income and what threshold triggers taxation.

If you receive benefits and live in one of these 13 states, you may owe state income tax on part or all of your benefits. The exact amount depends on your specific situation, your state's rules, and whether you file individually or jointly.

Key Takeaways

  • Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
  • Whether your benefits are taxed depends on your total income in that state, not the size of your Social Security check alone.
  • Each state uses different income thresholds and formulas, so the same income level may trigger taxation in one state but not another.
  • Some states offer exemptions or deductions for Social Security income if you meet age or income requirements.
  • You should check your state's tax rules and consider consulting a tax professional if you live in a state that taxes benefits.

How each state taxes Social Security benefits

The 13 states that tax Social Security do not all use the same method. Some follow the federal formula closely. Others have created their own thresholds and percentages.

Colorado taxes benefits using federal taxable income as a starting point, then applies state tax rates. Connecticut taxes benefits for higher-income retirees — those with combined income above $75,000 (single) or $100,000 (married filing jointly). Kansas exempts all Social Security benefits from state income tax, but this exemption is being phased out for those born after 1952. Minnesota taxes benefits for those with total income above $68,025 (single) or $114,050 (married filing jointly).

Missouri exempts all Social Security benefits from state tax. Montana taxes benefits based on federal taxable income, similar to Colorado. Nebraska taxes benefits for those with adjusted gross income above $32,370 (single) or $64,740 (married filing jointly). New Mexico exempts benefits for those age 55 and older, and for lower-income filers regardless of age. Rhode Island taxes benefits for those with income above $80,000 (single) or $100,000 (married filing jointly).

Utah taxes benefits at the state rate but allows a credit against other taxes owed. Vermont taxes benefits for those with income above $32,000 (single) or $50,000 (married filing jointly). West Virginia exempts all Social Security benefits from state income tax.

These thresholds and rules change periodically, and some states have phased in or phased out taxation over time. Check your state's tax authority website or speak with a tax professional to confirm the current rules for your situation.

How to calculate if your benefits will be taxed

To determine whether you owe state tax on your Social Security benefits, you need to know your state's income threshold and how it defines "income" for taxation purposes.

Start by adding up your income for the year: wages, self-employment income, pensions, interest, dividends, capital gains, and any other taxable income. Then add half of your Social Security benefits. This total is often called your "combined income." Compare this number to your state's threshold for your filing status (single, married filing jointly, or married filing separately).

If your combined income is below the threshold, your benefits are not taxed in that state. If it is above the threshold, some or all of your benefits may be taxable. The exact amount taxed varies by state — some states tax up to 50 percent of benefits, others up to 85 percent, and some use a different formula altogether.

Because the rules are complex and vary widely, many people find it helpful to work through the calculation with a tax professional or use tax software designed for your state. Your state's Department of Revenue website usually has worksheets or examples showing how to calculate taxable benefits.

States that used to tax Social Security but no longer do

A few states have eliminated Social Security taxation in recent years. Missouri and West Virginia both phased out taxation of Social Security benefits, though the process took several years.

Missouri began exempting Social Security benefits in 2021 and completed the phase-out by 2023. West Virginia started its exemption in 2022. If you lived in either state during the phase-out period, you may have owed tax in earlier years but do not owe it now.

Other states have modified their rules over time — for example, Kansas is phasing out its exemption for younger retirees rather than expanding it. Before assuming your state does not tax benefits, check the current rules with your state's tax authority, especially if you recently moved or if your income situation has changed.

Planning ahead if you live in a state that taxes benefits

If you live in one of the 13 states that tax Social Security, you have a few options to consider before you claim benefits or during retirement.

First, understand your state's income thresholds and how close you are to them. If you have control over when you claim Social Security, you might time your claim to keep your combined income below the threshold in your first year of retirement. If you have other income sources — such as a pension or investment withdrawals — you might be able to manage the timing of those to stay below the threshold.

Second, check whether your state offers any exemptions or deductions. Some states exempt benefits for people over a certain age, or for those with income below a certain level. New Mexico, for example, exempts all benefits for those age 55 and older. Other states may offer credits or deductions that reduce your tax liability even if your benefits are technically taxable.

Third, consider the tax impact of where you live in retirement. If you are thinking about moving, the state tax treatment of Social Security is one factor to weigh alongside cost of living, healthcare access, and proximity to family. Some people move to a state with no Social Security tax specifically to reduce their tax burden in retirement.

What to do if you owe state tax on your benefits

If you owe state income tax on your Social Security benefits, you will report this on your state income tax return, just as you would any other income. The process is the same whether you file electronically or on paper.

Your Social Security statement (Form SSA-1099) shows your gross benefits for the year. You will use this figure, along with your other income, to calculate your state taxable income. Some states have a specific worksheet for this calculation; others use a formula similar to the federal one.

If you expect to owe state tax on your benefits, you can request that the Social Security Administration withhold taxes from your monthly check. This is optional, but it can help you avoid a large tax bill when you file. You can adjust the withholding amount or stop it at any time by contacting Social Security or filling out Form W-4V.

If you did not have taxes withheld and owe state tax when you file, you will pay it along with your state return. Some states allow you to make estimated tax payments throughout the year if you prefer not to wait until tax time.

Federal taxation of Social Security is separate from state taxation

It is important to understand that federal and state taxation of Social Security are separate. You may owe federal tax on your benefits even if you live in a state that does not tax them. Conversely, you might owe state tax but not federal tax, depending on your income level and filing status.

The federal government taxes Social Security benefits for individuals with combined income above $25,000 (single) or $32,000 (married filing jointly). If your combined income is above these thresholds, up to 50 percent or 85 percent of your benefits may be subject to federal income tax.

When you file your federal return, you will calculate federal taxable benefits on Form 1040 and Schedule 1. When you file your state return, you will use your state's rules and worksheets. The two calculations are independent, so your federal tax liability does not automatically determine your state tax liability.

Frequently Asked Questions

Do I have to pay state tax on Social Security if I do not live in one of the 13 states?

No. Only Colorado, Connecticut, Kansas, Minnesota, Missouri, Nebraska, New Mexico, Rhode Island, Utah, Vermont, West Virginia, and Montana tax Social Security benefits. If you live in any other state, your state does not tax your benefits. However, the federal government may still tax them based on your combined income.

Can I reduce my state tax on Social Security by claiming it later?

Possibly. If you delay claiming Social Security, your monthly benefit will be larger, but you will have fewer years of payments. This might lower your combined income in early retirement years, keeping you below your state's tax threshold. However, delaying also means you receive fewer total benefits over your lifetime. A tax professional can help you model different claiming ages against your state's tax rules.

What if I move to a different state after I start receiving benefits?

Your state tax obligation follows your residency. If you move from a state that taxes benefits to one that does not, you will no longer owe state tax on your benefits starting in the year you move. If you move the other direction, you will begin owing state tax. You may need to file a return in both states for the year you move.

Can I have state taxes withheld from my Social Security check?

Yes. You can request that the Social Security Administration withhold federal income tax, state income tax, or both from your monthly benefit. Fill out Form W-4V and submit it to your local Social Security office or online through your my Social Security account. You can change or stop withholding at any time.

Does my spouse's Social Security income affect whether mine is taxed?

If you file jointly, your combined income includes both your benefits and your spouse's benefits, plus all other household income. This combined total is what determines whether either of your benefits is taxed. If you file separately, each person's taxation is calculated individually, though filing separately often results in higher taxes overall.