Thirteen states tax Social Security income, 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. However, the rules vary widely by state — some tax only high earners, others tax everyone, and some have exemptions based on age or income level. If you live in any other state, your Social Security benefits are not subject to state income tax, though you may still owe federal tax.
The amount of tax you owe depends on your total income, your filing status, and your state's specific rules. A state that taxes Social Security might exempt you entirely if you are over 65, or might only tax benefits above a certain income threshold. You need to know your state's rules before filing, because the calculation is different from federal taxation.
Key Takeaways
- Thirteen states tax Social Security income, but the other 37 states and Washington D.C. do not.
- Even in states that tax Social Security, you may owe nothing if you are over a certain age, earn below a threshold, or meet other conditions.
- Your state's tax on Social Security is separate from federal tax — you may owe both, one, or neither depending on your income and location.
- You should check your specific state's rules before filing, because exemptions and thresholds differ significantly.
How each of the thirteen states taxes Social Security
The thirteen states that tax Social Security each have different rules about who pays and how much. Some states exempt people over a certain age, some set income thresholds below which no tax is owed, and some tax all income equally. The following table shows the basic structure in each state, though you should verify the current rules with your state tax authority because these rules change.
| State | Who is taxed | Key exemptions or thresholds |
|---|---|---|
| Colorado | All residents | Exemption for residents 55 and older |
| Connecticut | Higher-income residents | No tax if federal adjusted gross income is below $75,000 (single) or $100,000 (married filing jointly) |
| Kansas | All residents | Full exemption for all Social Security income |
| Minnesota | Higher-income residents | No tax if total income is below $68,025 (single) or $114,225 (married filing jointly) as of 2024 |
| Missouri | All residents | Full exemption for all Social Security income |
| Montana | All residents | Exemption for residents 65 and older |
| Nebraska | All residents | Exemption for residents 67 and older; partial exemption for lower-income residents |
| New Mexico | All residents | Full exemption for all Social Security income |
| Rhode Island | Higher-income residents | No tax if federal adjusted gross income is below $80,000 (single) or $100,000 (married filing jointly) |
| Utah | All residents | Full exemption for all Social Security income |
| Vermont | All residents | Exemption for residents 65 and older |
| West Virginia | All residents | Full exemption for all Social Security income |
Notice that four states — Kansas, Missouri, New Mexico, and Utah — have a full exemption for all Social Security income, which means residents in those states pay no state tax on Social Security regardless of how much they earn. Other states like Colorado, Montana, and Vermont exempt only people over a certain age. Still others like Connecticut, Minnesota, and Rhode Island only tax people whose total income exceeds a specific threshold.
The thresholds and age cutoffs change periodically, and some states adjust them for inflation each year. Before you file, contact your state's tax department or check their website to confirm the current rules for your situation.
How federal tax on Social Security works separately
Even if your state does not tax Social Security, the federal government may. Federal tax on Social Security depends on your combined income, which includes your Social Security benefits, wages, interest, dividends, and other income. The IRS uses a formula based on your filing status and combined income to determine how much of your benefit is taxable at the federal level.
If your combined income is below certain thresholds, you owe no federal tax on Social Security. If it is above those thresholds, up to 50 percent or 85 percent of your benefits may be taxable, depending on how far above the threshold you are. These federal thresholds have not changed since 1984, so they affect more people now than they did decades ago.
Your state tax and federal tax are calculated separately. You could owe federal tax but no state tax, state tax but no federal tax, both, or neither. The only way to know is to run the numbers for your specific situation using your state's rules and the IRS rules.
What to do if you live in a state that taxes Social Security
If you live in one of the thirteen states that tax Social Security, you will need to report your benefits on your state tax return. Most states use the same Social Security income figure that appears on your federal return, but some states calculate it differently. Check your state's tax form or instructions to see whether you report the full amount or a different figure.
You may also need to make estimated tax payments if you expect to owe state tax on your Social Security. Some people have taxes withheld from their Social Security check, which reduces the amount you receive each month but ensures you do not owe a large bill at tax time. You can adjust your withholding by contacting Social Security directly or by filing a form with the Social Security Administration.
If you are new to a state that taxes Social Security, or if your income changes significantly, it is worth reviewing your withholding. Owing a surprise bill at tax time is avoidable if you plan ahead.
Moving to a different state and Social Security tax
If you are considering moving to a state that does not tax Social Security, or from one that does, the tax savings can be meaningful. However, state income tax is only one factor in the cost of living. You should also consider property taxes, sales taxes, healthcare costs, and housing prices in the state you are considering.
If you move during the year, you may owe tax to both your old state and your new state for the portion of the year you lived in each. Some states have reciprocal agreements that reduce or eliminate this double taxation, but not all do. Contact both states' tax departments before you move to understand what you will owe.
Also note that moving does not change your federal tax on Social Security. No matter where you live, the federal rules apply the same way.
Frequently Asked Questions
Do I have to pay state tax on Social Security if I moved to a non-taxing state after I started receiving benefits?
No. Your state tax obligation is based on where you live when you file your tax return, not where you lived when you started receiving benefits. If you move to a state that does not tax Social Security, you will not owe state tax on those benefits going forward, though you may owe tax to your previous state for the part of the year you lived there.
If I have Social Security withheld for taxes, does that cover both state and federal tax?
No. Withholding covers only federal tax. If you live in a state that taxes Social Security, you need to arrange separate withholding or make estimated payments to that state. You can request federal withholding through Social Security, but you must contact your state tax department separately about state withholding.
What if I work part-time and also receive Social Security — how does that affect state tax?
Your state tax on Social Security is based on your total income, which includes wages, self-employment income, interest, and other sources. If your total income pushes you above your state's threshold, you may owe tax on your Social Security even if you would not owe tax on Social Security alone. Check your state's rules to see how it combines income from different sources.
Can I reduce my state tax by moving my investments or income to another state?
Not for Social Security. Your state tax on Social Security is based on where you live, not where your money is held or earned. However, if you are considering a move for other reasons, the state tax on Social Security is one factor to weigh. Consult a tax professional if you are making a major financial decision based on state taxes.