Thirteen states have no Social Security tax at all

Thirteen states do not tax Social Security benefits: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, New York, Pennsylvania, and Tennessee. If you live in one of these states, your Social Security income is not subject to state income tax, regardless of how much you receive or what other income you have.

The other 37 states and Washington, D.C. do tax Social Security benefits, but most of them have income thresholds or other rules that protect lower-income retirees. A few states tax Social Security the same way the federal government does — only if your combined income exceeds a certain level. Others tax it more broadly. The amount you owe depends on your state, your total income, and sometimes your filing status.

Key Takeaways

  • Thirteen states have no Social Security tax: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, New York, Pennsylvania, and Tennessee.
  • Most other states tax Social Security only if your combined income (Social Security plus other earnings) exceeds a threshold that varies by state and filing status.
  • Some states use the same federal formula: you owe tax only if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly).
  • A few states tax all Social Security income above a certain age, regardless of how much you earn.
  • Your state of residence on December 31 determines which state's rules apply to your benefits for that tax year.

How other states calculate Social Security tax

Among the 37 states that do tax Social Security, the rules fall into three broad patterns. The most common approach mirrors the federal system: you owe tax only if your combined income — Social Security plus wages, pensions, interest, and other sources — exceeds a threshold. In many of these states, the threshold is the same as the federal one: $25,000 for single filers and $32,000 for married couples filing jointly.

A second group of states uses a higher threshold or phases in the tax gradually. For example, Colorado taxes Social Security only if your combined income exceeds $24,000 (single) or $32,000 (married), and then only on the amount above that threshold. Connecticut and Vermont have their own thresholds that differ from the federal level. A third group — including West Virginia and Utah — taxes Social Security more broadly, sometimes with fewer protections for lower-income retirees.

The exact rules in your state depend on your age, filing status, and total income. Because these thresholds and formulas change, you should check your state's tax authority website or speak with a tax preparer who knows your state's current rules before filing.

States with partial or limited Social Security tax

Some states tax Social Security but only for higher-income retirees. Colorado, Connecticut, Kansas, and New Mexico all have income thresholds above which Social Security becomes taxable. In these states, if your combined income falls below the threshold, you owe nothing on your benefits.

A few states — including Rhode Island and Vermont — tax Social Security but offer credits or deductions that reduce or eliminate the tax for many retirees. Rhode Island, for instance, allows a deduction for Social Security income, which means many recipients pay little or no state tax on their benefits. Vermont taxes Social Security but allows a credit that phases out as income rises.

Montana and New Mexico have special rules for residents over a certain age. Montana does not tax Social Security for residents age 65 and older. New Mexico exempts Social Security from taxation for residents age 65 and older, though it may tax other retirement income.

States that tax Social Security more broadly

A handful of states tax Social Security with fewer income-based protections. West Virginia taxes Social Security benefits for all residents, though it offers some credits and deductions. Utah taxes Social Security as ordinary income once your combined income exceeds a threshold, and the threshold is lower than in many other states.

Minnesota and Missouri both have rules that can result in taxation of Social Security for middle-income retirees. Minnesota taxes Social Security using a formula similar to the federal one, but the threshold is lower. Missouri taxes Social Security for residents with federal adjusted gross income above $32,000 (single) or $50,000 (married), which is higher than the federal threshold and means fewer Missourians owe tax on their benefits.

The specifics of these rules — including what counts as income, what deductions apply, and how the tax is calculated — vary significantly. If you live in any of these states, a tax preparer familiar with your state's rules can tell you whether you owe tax on your Social Security.

What counts as income for Social Security tax purposes

When determining whether your Social Security is taxable, states count your "combined income," which includes your Social Security benefits plus other income sources. The definition of combined income is usually: adjusted gross income (wages, self-employment income, interest, dividends, capital gains, pensions, and other sources) plus tax-exempt interest (such as interest from municipal bonds) plus half of your Social Security benefits.

This means that even if you have no wages or pensions, you can still have combined income high enough to trigger Social Security taxation if you have substantial interest or investment income. Conversely, if your only income is Social Security, your combined income will be low enough that you owe no tax in most states.

Some states use slightly different definitions or exclude certain types of income. For example, some states do not count military pensions or certain government pensions as income for this calculation. Check your state's tax rules or a tax preparer to understand exactly what counts in your situation.

How to find your state's specific rules

Your state's department of revenue or taxation website has a page on Social Security taxation. Search "[your state] Social Security tax" to find it. The page will list the income thresholds, the tax rate, and any credits or deductions that apply. Some state websites also have worksheets or calculators that let you estimate your tax liability.

If you file a federal return, you may also need to file a state return even if you live in a no-tax state, because some states require a return if you have income above a certain level or if you have tax withheld. The rules vary by state. A tax preparer or your state's tax authority can tell you whether you need to file.

If you move to a different state during the year, your state of residence on December 31 determines which state's rules apply to your Social Security for that tax year. If you move on January 1, the new state's rules apply. This matters because moving from a taxing state to a no-tax state can significantly reduce your tax burden.

Frequently Asked Questions

If I move to a state with no Social Security tax, do I get a refund for taxes I already paid?

No. Your state of residence on December 31 determines which state's rules apply for that tax year. If you moved partway through the year, you may owe tax to your old state for the months you lived there and owe nothing to your new state for the months you lived there. You do not get a refund for taxes already paid, but you should file a part-year return in both states to report your income correctly.

Does the federal government tax my Social Security?

The federal government taxes Social Security if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly). Combined income is your adjusted gross income plus half your Social Security benefits plus any tax-exempt interest. If you exceed the threshold, up to 85% of your benefits may be subject to federal tax. State tax rules are separate and different.

What if I have income from a part-time job and Social Security?

Both your wages and your Social Security count toward your combined income for state tax purposes. If your combined income exceeds your state's threshold, your Social Security becomes taxable. The wages themselves are taxed as normal income. A tax preparer can calculate your total liability based on your specific situation.

Do I have to file a state return if I live in a no-tax state?

Most no-tax states do not require you to file a return if your only income is Social Security. However, some require a return if you have other income above a certain level or if you have tax withheld. Check your state's rules or contact your state tax authority to be sure.

Can I reduce my Social Security tax by moving my money to a different account?

No. The tax is based on your combined income, not where the money is held. Moving money between accounts does not change your income for tax purposes. However, managing when you withdraw from retirement accounts or when you claim Social Security can affect your combined income and your tax liability. A tax preparer or financial advisor can discuss strategies specific to your situation.