Thirteen states tax Social Security benefits, but most do not

Only 13 states tax Social Security income: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The other 37 states and Washington, D.C. do not tax Social Security at all. Whether you owe state tax on your benefits depends entirely on where you live, not where you worked or where you receive the benefits.

The states that do tax Social Security do not all tax it the same way. Some tax it like ordinary income. Others exclude it entirely for people over a certain age or below a certain income threshold. A few tax only a portion of what you receive. If you live in one of the 13 states, you need to know your state's specific rules before you file.

Key Takeaways

  • Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
  • Each state that taxes Social Security has different income thresholds and exclusions, so a benefit amount that is taxed in one state may not be taxed in another.
  • Most states exclude Social Security from taxation entirely for people over age 62 or 65, or for people below a certain income level.
  • Your state tax obligation is based on where you live when you file, not where you worked or where you receive your benefits.

How each of the 13 states taxes Social Security

Colorado taxes Social Security like regular income, but only for people under age 55. If you are 55 or older, your Social Security is not taxed by the state.

Connecticut taxes Social Security for people with combined income above $75,000 (single filers) or $100,000 (married filing jointly). Combined income includes your adjusted gross income plus half your Social Security benefits. If you fall below these thresholds, your Social Security is not taxed.

Kansas taxes Social Security like ordinary income with no age exemption, but it allows you to exclude up to $75,000 of retirement income (including Social Security) if you are 55 or older. If you are under 55, you cannot use this exclusion.

Minnesota taxes Social Security for people with combined income above $68,025 (single) or $114,400 (married filing jointly). Like Connecticut, combined income includes half your Social Security benefits. Below these thresholds, your benefits are not taxed.

Missouri taxes Social Security for people with combined income above $32,000 (single) or $50,000 (married filing jointly). However, Missouri excludes all Social Security from taxation for people age 59 and older.

Montana taxes Social Security like ordinary income, but it excludes all Social Security benefits from taxation for people age 65 and older. If you are under 65, your benefits are taxable.

Nebraska taxes Social Security for people with combined income above $34,000 (single) or $44,000 (married filing jointly). Combined income includes half your Social Security benefits. People age 67 and older are excluded entirely.

New Mexico taxes Social Security like ordinary income, but it excludes all Social Security from taxation for people age 65 and older. If you are under 65, your benefits are taxable.

Rhode Island taxes Social Security for people with combined income above $50,000 (single) or $100,000 (married filing jointly). Combined income includes half your Social Security benefits. Below these thresholds, your benefits are not taxed.

Utah taxes Social Security like ordinary income, but it allows you to exclude all Social Security benefits from taxation. This means Utah residents do not actually pay state tax on Social Security, even though the state law technically allows it.

Vermont taxes Social Security for people with combined income above $32,000 (single) or $50,000 (married filing jointly). Combined income includes half your Social Security benefits. Below these thresholds, your benefits are not taxed.

West Virginia taxes Social Security for people with combined income above $25,000 (single) or $32,000 (married filing jointly). Combined income includes half your Social Security benefits. Below these thresholds, your benefits are not taxed.

How to figure out if your benefits are taxed in your state

Start by finding your state in the list above. If your state is not listed, you owe no state tax on Social Security. If your state is listed, check whether you meet any age or income exemptions your state offers.

If your state uses a combined income threshold (Connecticut, Minnesota, Missouri, Nebraska, Rhode Island, Vermont, or West Virginia), you will need to calculate your combined income. This is your adjusted gross income plus half your Social Security benefits. Compare that number to your state's threshold for your filing status. If your combined income is below the threshold, your benefits are not taxed. If it is above the threshold, some or all of your benefits may be taxed.

If you are unsure whether you meet an exemption, contact your state tax department directly. Most state tax departments have phone lines and websites where you can ask about Social Security taxation rules.

What happens if you move to a different state

Your state tax obligation changes the moment you establish residency in a new state. If you move from a state that taxes Social Security to one that does not, you will no longer owe state tax on your benefits starting in the year you move. If you move from a state that does not tax Social Security to one that does, you will owe state tax starting in the year you move.

Some people who are retired or receiving Social Security consider moving to a state with no Social Security tax. This can save money over time, but moving involves many other costs and decisions. Tax savings alone should not be the only reason to move.

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. File your tax return in the state where you lived when the tax year ended (December 31). Your new state may require you to file a part-year resident return for the months you lived there.

Federal tax on Social Security is separate from state tax

Whether your state taxes Social Security has nothing to do with whether the federal government taxes it. The federal government taxes Social Security for people with combined income above $25,000 (single) or $32,000 (married filing jointly). This is true regardless of what state you live in.

Combined income for federal purposes is your adjusted gross income plus half your Social Security benefits, the same calculation many states use. If you are subject to federal tax on Social Security, you will owe it even if you live in a state that does not tax Social Security. If you live in a state that does tax Social Security, you may owe both federal and state tax on the same benefits.

Frequently Asked Questions

If I move to a state that does not tax Social Security, will I get a refund for taxes I already paid?

No. Your old state will not refund taxes you paid in prior years. State tax obligations are based on where you lived when you filed. Once you move and establish residency in a new state, you owe tax only to your new state going forward.

Does the state I worked in matter, or only the state I live in now?

Only the state you live in now matters. Social Security is not tied to where you worked. If you worked in Kansas your whole life but now live in Colorado, Colorado's rules apply to your Social Security benefits.

If I am over the income threshold in my state, is all of my Social Security taxed?

Not necessarily. Most states that tax Social Security tax only a portion of your benefits, not all of it. The exact amount depends on your state's formula and how much your combined income exceeds the threshold. Your state tax department or a tax preparer can calculate the exact amount you owe.

Can I avoid state tax on Social Security by having it sent to a different state?

No. Your tax obligation is based on where you live, not where your benefits are deposited or mailed. If you live in Connecticut, you owe Connecticut tax on your Social Security regardless of which bank account receives the payment.

Do I need to report Social Security on my state tax return if my state does not tax it?

Most states that do not tax Social Security do not require you to report it on your state return. However, some states ask you to report it for informational purposes even though it is not taxed. Check your state's tax form instructions or contact your state tax department to be sure.