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 other 37 states do not tax Social Security benefits at all. Whether your benefits are taxed depends on where you live when you receive them, not where you worked or paid taxes during your career.

The amount you owe varies widely. Some states tax Social Security the same way the federal government does — based on your total income and filing status. Others use a different calculation or exempt certain income levels entirely. A few states have phased out their Social Security tax or plan to do so in coming years.

If you are considering a move in retirement, or if you already live in a state that taxes benefits, understanding your state's specific rules can help you plan your taxes and budget more accurately.

Key Takeaways

  • Thirteen states tax Social Security benefits; thirty-seven states do not tax them at all.
  • State tax rules vary significantly — some states tax all benefits above a threshold, while others exempt benefits entirely for people over a certain age or with lower incomes.
  • Your state of residence when you receive benefits determines whether they are taxed, regardless of where you worked.
  • A few states have recently reduced or eliminated their Social Security tax, so rules can change year to year.

How each of the thirteen states taxes Social Security

Colorado taxes Social Security benefits as ordinary income but exempts all benefits for residents age 55 and older. Residents under 55 pay tax on the full amount.

Connecticut taxes benefits only for residents with modified adjusted gross income above $75,000 (single filers) or $100,000 (joint filers). The tax applies only to the amount of benefits above those thresholds.

Kansas exempts all Social Security benefits from state income tax — this changed in 2023, so benefits received in 2023 and later are not taxed.

Minnesota taxes Social Security benefits as ordinary income but exempts all benefits for residents age 62 and older. Only residents under 62 who receive benefits pay tax.

Missouri exempts all Social Security benefits from state income tax. This exemption has been in place for many years.

Montana taxes Social Security benefits as ordinary income with no age-based exemption, though residents may claim a property tax reduction if they meet income limits.

Nebraska taxes Social Security benefits as ordinary income but exempts all benefits for residents age 67 and older. Residents under 67 pay tax on the full amount.

New Mexico exempts all Social Security benefits from state income tax.

Rhode Island taxes Social Security benefits as ordinary income but exempts all benefits for residents age 59 and older. Residents under 59 pay tax on the full amount.

Utah taxes Social Security benefits as ordinary income with no age-based exemption.

Vermont taxes Social Security benefits as ordinary income but exempts all benefits for residents age 62 and older. Residents under 62 pay tax on the full amount.

West Virginia exempts all Social Security benefits from state income tax.

States that recently changed their Social Security tax rules

Several states have reduced or eliminated their Social Security tax in recent years. Kansas stopped taxing benefits entirely starting in 2023. Missouri has exempted benefits for many years. New Mexico and West Virginia also do not tax benefits.

Other states have signaled plans to phase out the tax. Montana has discussed reducing its tax burden on retirees, though no change has been enacted. Check your state's revenue or tax department website for the most current rules, since legislation can change between tax years.

How federal and state taxation of Social Security works together

The federal government taxes Social Security benefits based on your combined income — the sum of your adjusted gross income, tax-exempt interest, and half your Social Security benefits. If that total exceeds $25,000 (single filers) or $32,000 (joint filers), you may owe federal tax on up to 85 percent of your benefits.

State taxation is separate. A state that taxes Social Security typically uses the same income thresholds or creates its own. You can owe federal tax, state tax, both, or neither depending on your income and where you live. Some states use federal taxable income as a starting point and then add or subtract items specific to state law.

If you live in a state that taxes benefits and you move to a state that does not, your tax bill can drop significantly. Conversely, moving into a state that taxes benefits will increase your tax burden on the same income.

What documents you need to understand your state's tax treatment

Your Social Security statement (Form SSA-1099) shows the total benefits you received in the tax year. Your state tax form or instructions will tell you whether those benefits are taxable in your state and what income thresholds apply.

If you have other income — from pensions, part-time work, investments, or retirement account withdrawals — you will need to add that to your Social Security benefits to calculate your combined income. That combined total determines whether you cross your state's tax threshold.

Your state's revenue or tax department website usually has a worksheet or calculator to help you figure out how much of your benefits, if any, are taxable under state law. Some states also publish detailed guidance for retirees.

Planning your taxes if you live in a state that taxes Social Security

If you live in one of the thirteen states that tax benefits, you have a few options to reduce your tax burden. Delaying Social Security can lower your annual income and may keep you below your state's tax threshold. Withdrawing from tax-deferred retirement accounts (like traditional IRAs) in some years and not others can also help you manage your combined income.

Some people in high-tax states consider moving to a state with no Social Security tax once they reach retirement age. This is a major decision that involves more than taxes — housing costs, healthcare, family, and climate all matter — but the tax savings can be substantial over many years.

Talk to a tax professional or your state's revenue department if you are unsure whether your benefits are taxable or how much you owe. Many states offer free tax preparation for low-income seniors.

Frequently Asked Questions

If I move to a different state, when does the tax change take effect?

Your state of residence on December 31 of the tax year determines which state's rules apply to your benefits for that year. If you move mid-year, you typically use the rules of the state where you lived on that date. File your taxes in both states if you moved during the year; one state will give you a credit for taxes paid to the other.

Do I have to pay federal tax and state tax on the same benefits?

Yes, it is possible. Federal and state taxes are separate systems. You could owe federal tax on your benefits and also owe state tax if you live in one of the thirteen states that tax them. The amount taxed at each level may differ because the income thresholds and calculations are not identical.

What if I worked in one state but retired in another?

Only your current state of residence matters for Social Security taxation. Where you worked or paid taxes during your career does not affect whether your benefits are taxed now. Your state of residence when you receive the benefits determines the tax treatment.

Can I reduce my state taxes by withdrawing less from my retirement accounts?

Yes. Retirement account withdrawals count toward your combined income, which determines whether you cross your state's Social Security tax threshold. In some cases, withdrawing less in a given year can keep your total income below the threshold and reduce or eliminate state tax on your benefits. A tax professional can help you plan withdrawals across multiple years.

Are there any states that used to tax Social Security but stopped?

Yes. Kansas stopped taxing Social Security benefits in 2023. Missouri and New Mexico have not taxed benefits for many years. Other states have discussed phasing out the tax but have not yet done so. Check your state's revenue department for the most current information.