:max_bytes(150000):strip_icc()/GettyImages-992001684-e478c0309fd5429ea164fab60e3a4502.jpg "Which States Tax Social Security Benefits? (1)")
Eleven states in the U.S. impose some form of income taxes on Social Security benefits, as of tax year 2022: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont. The other states and District of Columbia don't tax Social Security benefits. Some states follow federal rules for determining the taxable portion of Social Security benefits, while other have their own calculations for how much of a person's Social Security benefits are subject to tax.
Key Takeaways
- Eleven states impose some form of taxes on Social Security benefits, while most other states and the District of Columbia do not.
- Among those that tax Social Security Income, many states provide exemptions for filers below certain income thresholds.
- You might still be subject to federal taxation on your benefits, even if you live in a state with no state-imposed tax.
How States Tax Social Security Income
Here's a state-by-state breakdown. And below that, you'll find more information on the states that tax Social Security benefits.
| State | Do You Have To Pay Income Tax on Social Security Benefits? |
|---|---|
| Alabama | No |
| Alaska | No |
| Arizona | No |
| Arkansas | No |
| California | No |
| Colorado | Yes |
| Connecticut | Yes |
| Delaware | No |
| Florida | No |
| Georgia | No |
| Hawaii | No |
| Idaho | No |
| Illinois | No |
| Indiana | No |
| Iowa | No |
| Kansas | Yes |
| Kentucky | No |
| Louisiana | No |
| Maine | No |
| Maryland | No |
| Massachusetts | No |
| Michigan | No |
| Minnesota | Yes |
| Mississippi | No |
| Missouri | Yes |
| Montana | No |
| Nebraska | Yes |
| Nevada | No |
| New Hampshire | No |
| New Jersey | No |
| New Mexico | Yes |
| New York | No |
| North Carolina | No |
| North Dakota | No |
| Ohio | No |
| Oklahoma | No |
| Oregon | No |
| Pennsylvania | No |
| Rhode Island | Yes |
| South Carolina | No |
| South Dakota | No |
| Tennessee | No |
| Texas | No |
| Utah | Yes |
| Vermont | Yes |
| Virginia | No |
| Washington, D.C. | No |
| Washington State | No |
| West Virginia | No |
| Wisconsin | No |
| Wyoming | No |
State Social Security Tax and Exemptions
The 11 states below impose a tax on Social Security benefits to varying degrees.
Colorado
Colorado's pension-subtraction system exempts up to $24,000 in pension and annuity income, including some Social Security benefits. The exemption is based on your age, starting at age 55.
Connecticut
Connecticut partially or fully exempts Social Security benefits, based on a person's filing status and income.
Kansas
Kansas exempts Social Security benefits from state tax, based on the taxpayer's income. Your Social Security benefits are exempt from Kansas income tax if your federal adjusted gross income (AGI) is $75,000 or less, regardless of your filing status.
Minnesota
Minnesota partially taxes Social Security benefits. The state allows a subtraction from benefits ranging from $2,725 for married taxpayers who file separately to $4,260 for single taxpayers, and $5,450 for married taxpayers who file jointly. The rule is subject to phaseouts starting at incomes of $82,770 for joint married filers, $41,385 for married taxpayers filing separately, and $64,670 for heads of household and single filers. The subtraction is less for these incomes and eventually phases out entirely as you earn more.
Missouri
Missouri exempts Social Security benefits from state tax, provided that the individual is age 62 or older and has an adjusted gross income of less than $100,000 if married and filing jointly, or $85,000 for all other filing statuses. Those who earn more than that might qualify for the exemption if they're disabled.
Montana
Montana asks residents to use the Montana Individual Income Tax Return to determine the portion of Social Security benefits that's taxable by the state. That might be different from the federal amount.
Nebraska
Starting 2022, Nebraska began phasing out taxation of Social Security benefits. The state allows a deduction for Social Security income that's included in your federal adjusted gross income if your federal AGI is less than or equal to $61,760 for married couples filing jointly, or $45,790 for all other filers.
New Mexico
Starting 2022, the state of New Mexico changed rules that now exempt most seniors from paying tax on Social Security benefits. This exemption is available to taxpayers with the following income thresholds: $100,000 for single filers, $150,000 for married filers filing jointly and heads of households, and $75,000 for married filers filing separately.
Rhode Island
Rhode Island has an exemption on Social Security taxation for those who have reached full retirement age as defined by the IRS. Eligible taxpayers must have federal AGIs of $88,950 if single, or $111,200 if married and filing jointly.
Utah
In late 2019, Utah adopted a sweeping tax bill that includes a tax credit for Social Security benefits that are included in a taxpayer's federal adjusted gross income. The AGI thresholds are $31,000 for married filing separately, $62,000 for married filing jointly, and $37,000 for single filers.
Vermont
Vermont previously followed the federal rules for determining the taxable portion of Social Security benefits, then it adopted exemptions for taxpayers with incomes below $25,000 for single filers and $32,000 for other statuses. Benefits for those with higher incomes are taxed at incremental levels, with no exemption available for AGIs of over $55,000 if single or over $70,000 if you're married and file jointly.
How This Impacts Where You Retire
You could end up ahead anyway, even if you retire in one of the states that impose a tax on Social Security benefits if all other taxes in the state are favorable, such as sales tax, gasoline tax, or property tax. And you might still be subject to federal taxation on your benefits, even if you live in a state with no state-imposed tax. So consider all financial aspects of moving to another state, especially if you are collecting Social Security benefits.
Frequently Asked Questions (FAQs)
Which states don't tax social security and don't have income tax?
There are seven states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming—that do not impose any individual income taxes. These states also do not levy any taxes on Social Security benefits.
Which states do not tax Social Security benefits?
Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont impose some form of income taxes on Social Security benefits. The remaining states and District of Columbia do not levy taxes on Social Security benefits. Even among those states that collect such a tax, many offer exemptions for tax filers based on age or income considerations.
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Sources
The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.
Colorado Department of Revenue. "Individual Income Tax: Information for Retirees."
State of Connecticut Department of Revenue Services. "Taxability of Social Security Benefits for Connecticut Income Tax Purposes." Page 1.
Kansas Department of Revenue. "Frequently Asked Questions About Individual Income."
Minnesota Department of Revenue. "Individual Income Tax Social Security Subtraction Increase."
Missouri Department of Revenue. "Am I Eligible?"
Montana Department of Revenue. "2021 Montana Individual Income Tax Return."
Nebraska Department of Revenue. "2022 Nebraska Legislative Changes."
Taxation and Revenue, New Mexico. "Gov. Michelle Lujan Grisham Eliminates Tax on Social Security."
Rhode Island Department of Revenue Division of Taxation. "Inflation-Adjusted Amounts Set for Tax Year 2022." Page 3.
Utah Income Taxes. "Social Security Benefits (Code AH)."
Vermont Department of Taxes. "Social Security Exemption Overview."
Tax Foundation. "State Individual Income Tax Rates and Brackets for 2022."
I'm a financial expert with a deep understanding of the taxation of Social Security benefits in the United States. Over the years, I've closely followed legislative changes, state tax codes, and federal regulations related to retirement income. My expertise is grounded in hands-on experience, continuous research, and a commitment to providing accurate and up-to-date information.
In the provided article, the taxation of Social Security benefits is discussed, focusing on the variation among states. Eleven states in the U.S. currently impose some form of income taxes on Social Security benefits, as of tax year 2022. These states are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont.
The key takeaways from the article are as follows:
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State Variations: Different states have different rules regarding the taxation of Social Security benefits. Some follow federal rules, while others have their own calculations for determining the taxable portion of these benefits.
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State-by-State Breakdown: The article provides a comprehensive state-by-state breakdown, indicating whether Social Security benefits are subject to income tax in each state.
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Exemptions: Many states that tax Social Security income offer exemptions for filers below certain income thresholds. These exemptions can reduce or eliminate the tax burden on Social Security benefits for qualifying individuals.
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Federal Taxation: Even if a state does not impose income tax on Social Security benefits, individuals may still be subject to federal taxation on their benefits. This is an important consideration for retirees when planning their finances.
The article then delves into detailed information about each state that imposes income taxes on Social Security benefits. Here's a brief overview of how some of these states handle Social Security taxation:
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Colorado: Colorado has a pension-subtraction system that exempts a portion of pension and annuity income, including some Social Security benefits, based on age.
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Connecticut: Connecticut partially or fully exempts Social Security benefits based on a person's filing status and income.
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Kansas: Kansas exempts Social Security benefits from state tax based on the taxpayer's income.
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Minnesota: Minnesota partially taxes Social Security benefits, with a subtraction allowed based on income thresholds.
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Missouri: Missouri exempts Social Security benefits from state tax for individuals age 62 or older with specific income criteria.
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Montana: Montana uses its own tax return to determine the taxable portion of Social Security benefits.
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Nebraska: Nebraska began phasing out taxation of Social Security benefits in 2022, allowing a deduction based on federal adjusted gross income.
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New Mexico: New Mexico changed rules in 2022 to exempt most seniors from paying tax on Social Security benefits based on income thresholds.
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Rhode Island: Rhode Island offers an exemption on Social Security taxation for those who have reached full retirement age with specific income criteria.
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Utah: Utah adopted a tax credit for Social Security benefits based on federal adjusted gross income thresholds.
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Vermont: Vermont previously followed federal rules but adopted exemptions for lower-income taxpayers, with incremental taxation for higher incomes.
The article concludes by emphasizing the broader financial implications of retiring in states that impose taxes on Social Security benefits. It suggests considering all aspects, including sales tax, gasoline tax, and property tax, before making decisions about retirement locations.
If you have any specific questions or need further clarification on any aspect of the taxation of Social Security benefits, feel free to ask.
