Quick Answer
37 states plus D.C. don't tax Social Security benefits at all. Only 13 states tax Social Security: Colorado, Connecticut, Kansas, Minnesota, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, West Virginia, and until recently, Missouri and Minnesota (both repealing their taxes).
Best Answer
Robert Kim, Tax Return Analyst
Social Security recipients trying to minimize their overall tax burden
37 states don't tax Social Security benefits
The vast majority of states follow the federal tax treatment and don't impose additional state taxes on Social Security benefits. This includes the 9 states with no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) plus 28 others that specifically exempt Social Security from taxation.
The 13 states that still tax Social Security (as of 2026)
According to AARP's latest analysis, these states continue to tax Social Security benefits, though most offer some exemptions or reduced rates:
Full taxation states: Connecticut, Rhode Island, and Vermont tax Social Security benefits at regular income tax rates with limited exemptions.
Partial taxation states: The remaining 10 states offer various exemptions based on income levels, age, or filing status.
State-by-state breakdown of Social Security taxation
*Minnesota is phasing out Social Security taxation by 2026
Example: $30,000 Social Security + $20,000 other income
Let's examine how different states would tax a couple receiving $30,000 in Social Security benefits plus $20,000 in other retirement income (total AGI: $35,000 after federal calculations):
Tax-free states (Florida, Pennsylvania, etc.): $0 state tax on Social Security
Colorado: Benefits likely exempt due to income-based exemption - $0 state tax
Connecticut: Below taxation threshold - $0 state tax
Rhode Island: Approximately $300-500 annual state tax on Social Security portion
Vermont: Approximately $400-600 annual state tax on Social Security portion
Recent legislative changes affecting Social Security taxation
Positive trends: Several states have recently eliminated or are phasing out Social Security taxation. Missouri eliminated its tax in 2023, Minnesota is phasing it out through 2026, and other states are considering similar moves.
Federal coordination: Per IRS Publication 915, federal Social Security taxation follows specific formulas based on "provisional income." States that tax Social Security generally follow similar income thresholds but apply their own tax rates.
Impact of federal Social Security taxation
Remember that federal taxation still applies regardless of state treatment. According to Social Security Administration data, about 40% of beneficiaries pay federal taxes on their benefits. The federal taxation formula considers your provisional income (AGI + non-taxable interest + 50% of Social Security benefits):
What you should do
If you live in one of the 13 taxing states, calculate whether relocating to a tax-friendly state makes financial sense. Consider the total tax picture, including income taxes, property taxes, and sales taxes, not just Social Security treatment.
For those already in taxing states, explore whether you qualify for available exemptions based on age, income, or filing status.
Use our refund estimator to calculate potential tax savings from moving to a Social Security tax-free state.
Key takeaway: Living in one of the 37 Social Security tax-free states can save retirees $300-1,500+ annually compared to the 13 states that still tax these benefits.
Key Takeaway: 37 states don't tax Social Security benefits, potentially saving retirees hundreds to thousands annually versus the 13 taxing states.
Current Social Security state taxation status for all states that tax these benefits
| State | Taxation Status | Income Exemption | Estimated Annual Tax* |
|---|---|---|---|
| Colorado | Partial exemption | $75,000 AGI limit | $0-400 |
| Connecticut | Taxed above thresholds | $100,000+ AGI | $200-800 |
| Kansas | Partial exemption | $75,000 AGI limit | $0-300 |
| Minnesota | Being phased out | Varies | $0-600 |
| Montana | Partial exemption | $45,000 AGI limit | $100-500 |
| Nebraska | Partial exemption | $78,000 AGI limit | $0-400 |
| New Mexico | Partial exemption | $100,000 AGI limit | $0-300 |
| Rhode Island | Fully taxed | Limited exemptions | $300-700 |
| Utah | Credit system | Credit phases out | $100-400 |
| Vermont | Taxed | $50,000+ AGI | $400-900 |
| West Virginia | Partial exemption | $50,000 AGI limit | $0-400 |
More Perspectives
Michelle Woodard, Tax Policy Analyst
Social Security recipients who relocated or are considering relocating to optimize their tax situation
Strategic relocation for Social Security tax optimization
Moving from a Social Security-taxing state to a tax-free state can provide immediate tax savings, but the decision requires careful analysis of total tax burden and residency establishment.
Timing your move for maximum benefit
Mid-year moves require part-year returns: If you move from Connecticut to Florida in July, you'll file part-year returns in both states. Connecticut will tax Social Security benefits received while you were a resident, but Florida won't tax benefits received after establishing residency.
Establishing legal residency: High-tax states may challenge your residency change, especially if you're receiving substantial Social Security benefits. Document your move with driver's license changes, voter registration, utility connections, and spending at least 183+ days in your new state.
Popular relocation destinations
Florida and Texas are top choices not just for Social Security exemption, but because they have no state income tax at all. However, consider total cost of living, including higher property taxes in Texas or higher insurance costs in Florida.
Avoiding residency audits
States like California and New York are particularly aggressive about challenging residency changes by high-income retirees. Maintain detailed records of your time spent in each state and avoid maintaining significant ties to your former state.
Key takeaway: Strategic relocation requires proper residency establishment and documentation, but can provide immediate and ongoing Social Security tax savings.
Key Takeaway: Strategic state relocation can eliminate Social Security state taxes immediately, but requires proper residency establishment and documentation.
Michelle Woodard, Tax Policy Analyst
Social Security recipients with complex tax situations involving multiple state connections
Multi-state situations and Social Security taxation
Social Security benefits are typically taxed only by your state of legal residence, regardless of where you worked or where the Social Security Administration sends your checks. However, complex situations can arise with multiple state connections.
Residency determination for Social Security taxation
Unlike some retirement income that may be taxed by the "source" state, Social Security benefits follow residency rules. If you're a legal resident of Florida but maintain a summer home in Vermont, only your legal residency state (Florida) determines Social Security tax treatment.
Split-year scenarios
If you change legal residency mid-year, each state taxes Social Security benefits only for the portion of the year you were their resident. This requires careful allocation on part-year returns and proper documentation of your residency change date.
Federal vs. state coordination challenges
Some taxpayers face situations where their federal and state tax situations don't align perfectly. For example, if you're married filing separately federally but your state requires joint filing, the Social Security taxation calculation may differ between federal and state returns.
Key takeaway: Social Security state taxation follows legal residency rules, making proper residency establishment crucial for multi-state taxpayers.
Key Takeaway: Social Security state taxation follows legal residency, making residency determination crucial for taxpayers with multi-state connections.
Sources
- IRS Publication 915 — Social Security and Equivalent Railroad Retirement Benefits
- Social Security Administration Taxation Guide — Federal and State Taxation of Social Security Benefits
Related Questions
Reviewed by Robert Kim, Tax Return Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.