Thirteen states do not tax Social Security benefits at all
If you receive Social Security and live in Alabama, Alaska, Florida, Georgia, Illinois, Louisiana, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, or Washington, your state will not tax those benefits. This is the simplest tax situation you can have as a retiree — your Social Security check arrives and stays yours without state income tax taking a cut.
The other 37 states and Washington, D.C. do tax Social Security, though most have income thresholds or exemptions that protect lower-income retirees. The amount of tax you owe depends on your state's rules, your total income, and how much you receive from Social Security.
Key Takeaways
- Thirteen states have no state income tax on Social Security: Alabama, Alaska, Florida, Georgia, Illinois, Louisiana, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Washington.
- Most other states tax Social Security only if your combined income (adjusted gross income plus nontaxable interest plus half your Social Security) exceeds a threshold they set, which ranges from $25,000 to $75,000 for single filers.
- Some states exempt Social Security entirely for residents over a certain age, usually 59½ or 62, even though they tax it for younger retirees.
- Your state of residence when you claim Social Security matters — moving to a no-tax state after you start receiving benefits can reduce your tax burden going forward.
How the other 37 states tax Social Security
Most states that tax Social Security use a threshold system. They calculate your combined income — which includes your adjusted gross income, nontaxable interest, and half your Social Security benefit — and only tax the benefit if that total exceeds a number they set. Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont use this method.
The threshold varies by state and filing status. A single filer in Colorado faces taxation if combined income exceeds $25,000; in Connecticut, the threshold is $75,000. Married couples filing jointly usually see higher thresholds, often $32,000 to $100,000. If your combined income falls below your state's threshold, you owe no state tax on Social Security, even though you live in a state that taxes it.
The remaining states — including California, New York, Ohio, and Pennsylvania — either tax Social Security under their general income tax rules or have specific exemptions based on age or income level. Pennsylvania, for example, exempts all Social Security income from state tax regardless of how much you earn, making it functionally equivalent to the thirteen no-tax states even though it has an income tax.
Age-based exemptions in some states
Several states exempt Social Security from taxation once you reach a certain age, even though they tax it for younger retirees. Iowa, Kentucky, and Mississippi exempt Social Security for residents age 59½ and older. Massachusetts exempts it for those 62 and up. These exemptions mean your tax burden drops on your birthday if you live in one of these states.
Age-based exemptions are less common than income thresholds, but they matter if you retire early and claim Social Security before your full retirement age. You may owe state tax on your benefits until you hit the exemption age, then owe nothing afterward. Check your specific state's rules if you are within a few years of the threshold age.
States with income thresholds and what they mean for you
| State | Single Filer Threshold | Married Filing Jointly Threshold |
|---|---|---|
| Colorado | $25,000 | $32,000 |
| Connecticut | $75,000 | $100,000 |
| Kansas | $75,000 | $100,000 |
| Minnesota | $68,025 | $85,350 |
| Missouri | $25,000 | $32,000 |
| Montana | $25,000 | $32,000 |
| Nebraska | $34,000 | $44,000 |
| New Mexico | $25,000 | $32,000 |
| Rhode Island | $50,000 | $60,000 |
| Utah | $25,000 | $32,000 |
| Vermont | $25,000 | $32,000 |
If you live in one of these states, calculate your combined income before filing your state return. Add your adjusted gross income (line 11 on the federal Form 1040), any nontaxable interest you earned, and half your total Social Security benefit for the year. If that sum is below your state's threshold, you will not owe state tax on the Social Security portion of your income, though you may still owe tax on other income like pensions or investment gains.
The threshold method protects lower-income retirees. A single person in Colorado with $20,000 in Social Security and $5,000 in pension income has a combined income of $25,000 (the threshold), so they owe no state tax on Social Security. If they had $30,000 in combined income, Colorado would tax the amount over the threshold.
How to find your state's exact rules
State tax rules change, and some states have adjusted their thresholds or exemptions in recent years. The most reliable source is your state's department of revenue website, which publishes instructions for residents who receive Social Security. Search "[your state] Social Security tax" and look for the official tax guide or frequently asked questions page.
Your state's tax form itself — usually the state income tax return — will also spell out the rules. If you live in a threshold state, the instructions will show you how to calculate combined income and whether you need to report Social Security at all. If you are unsure whether you owe state tax, your state's revenue department can answer by phone or email, and many offer free tax preparation help for retirees with lower incomes.
Moving to a no-tax state and timing considerations
If you live in a state that taxes Social Security and are considering retirement, moving to one of the thirteen no-tax states can reduce your overall tax burden. However, timing matters. Your state of residence on December 31 of the tax year determines which state's rules apply to your Social Security income for that year. If you move mid-year, you may owe tax to your old state for the months you lived there and to your new state for the remainder of the year.
Some states also tax Social Security income for residents who moved away but still receive benefits. Check whether your current state taxes former residents before you move. A few states have reciprocal agreements that affect how they tax income earned in neighboring states, though Social Security is usually treated the same way regardless of where you worked.
Federal tax on Social Security is separate from state tax
State taxation of Social Security is independent of federal taxation. You may owe federal income tax on your Social Security benefits even if your state does not tax them, or you may owe no federal tax but still owe state tax. The federal threshold for taxation is higher than most states' thresholds — you generally do not owe federal tax on Social Security unless your combined income exceeds $25,000 (single) or $32,000 (married filing jointly) — but the calculation is the same.
When you file your federal return, you report all your Social Security income on line 5b of Form 1040. Your state return may ask you to report it separately or may have a worksheet to determine the taxable portion. Do not assume that because you paid federal tax you owe state tax, or vice versa. Each return is calculated independently.
Frequently Asked Questions
If I move to a no-tax state, do I stop paying state tax on Social Security immediately?
Your state of residence on December 31 determines which state's rules apply for that tax year. If you move on July 1, you owe tax to your old state for January through June (under its rules) and to your new state for July through December (under its rules). Some states do not tax residents who moved away partway through the year, but you must file in both states to determine what you owe.
Does living in a no-tax state mean I pay no income tax at all?
No. The thirteen states with no Social Security tax still tax other income — pensions, investment gains, wages, and interest — unless they have no state income tax at all. Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Washington have no state income tax on any income. The other six (Alabama, Georgia, Illinois, Louisiana, Mississippi, Pennsylvania) tax other income but exempt Social Security.
Can I claim a deduction for state taxes I paid on Social Security on my federal return?
Yes, if you itemize deductions on your federal return. State and local taxes (SALT) are deductible up to $10,000 per year on your federal Form 1040. This includes state income tax you paid on Social Security. If you take the standard deduction instead, you cannot deduct state taxes.
What if I receive Social Security and a pension — how do states calculate combined income?
Combined income includes your adjusted gross income (which includes pension income), nontaxable interest, and half your Social Security benefit. If you receive a $20,000 pension and $15,000 in Social Security, your combined income is $20,000 + $7,500 (half of $15,000) = $27,500. This total is compared to your state's threshold to determine if any Social Security is taxable.
Do I have to file a state return if I live in a no-tax state?
Not if your only income is Social Security. States with no Social Security tax typically do not require you to file a state return if you have no other taxable income. However, if you have pension income, investment income, or wages, you may need to file even in a no-tax state. Check your state's filing requirements or contact the revenue department.