As of 2026, 42 states plus Washington DC do not tax Social Security benefits. The remaining 8 states tax Social Security income to varying degrees — some fully, others only above certain income thresholds. If you live in or plan to retire in one of those 8 states, you could owe hundreds to thousands of dollars in additional state tax on your Social Security checks each year.
Quick answer: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and DC all exempt Social Security from state income tax. The 8 states that still tax it are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
The 8 States That Still Tax Social Security in 2026
| State | How SS Is Taxed | Key Threshold |
|---|---|---|
| Colorado | Partial exemption based on age | Under 65: deduct up to $20,000; 65+: full SS deduction available |
| Connecticut | Portion of benefits taxed above income threshold | Taxed if AGI > $75,000 (single) / $100,000 (MFJ) |
| Minnesota | Partial exemption for lower earners | Subtraction available; phases out at higher incomes (thresholds indexed annually — confirm current amount at revenue.state.mn.us) |
| Montana | Taxed using a state-specific formula tied to federal AGI | Confirm current thresholds at Montana Department of Revenue |
| New Mexico | Partial exemption for most retirees | Exempt for income below roughly $100,000 (single) / $150,000 (MFJ) — confirm current thresholds |
| Rhode Island | Taxed above thresholds; FRA recipients get exemption | Exemption available for filers at FRA below an income threshold — confirm current amount at RI Division of Taxation |
| Utah | Income-based credit offsets tax for lower earners | Credit phases out above income thresholds — confirm current amount at Utah State Tax Commission |
| Vermont | Partial; exempt at lower income levels | Exempt below roughly $65,000 (single) / $85,000 (MFJ) AGI — confirm current thresholds |
Note: State income thresholds for partial SS exemptions are generally adjusted or revised each legislative session. Always verify your state’s current rules with your state department of revenue before relying on a specific dollar figure.
The 42 States (Plus DC) That Don’t Tax Social Security
These states fully exempt Social Security benefits from state income tax:
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Washington DC, West Virginia, Wisconsin, and Wyoming.
Note: Kansas, Missouri, and Nebraska phased out Social Security taxation in 2024, North Dakota eliminated its SS tax in recent years, and West Virginia completed its multi-year phase-out of SS taxation, making all of them fully exempt in 2026.
Federal Tax on Social Security: A Separate Issue
Even if you live in a no-SS-tax state, federal income tax on Social Security applies everywhere. The federal tax is based on your “combined income”:
Combined income = Adjusted gross income + nontaxable interest + ½ of your Social Security benefits
| Combined Income (Single) | % of SS Benefits Taxable |
|---|---|
| Below $25,000 | 0% |
| $25,000–$34,000 | Up to 50% |
| Above $34,000 | Up to 85% |
| Combined Income (Married Filing Jointly) | % of SS Benefits Taxable |
|---|---|
| Below $32,000 | 0% |
| $32,000–$44,000 | Up to 50% |
| Above $44,000 | Up to 85% |
These federal thresholds ($25,000/$32,000 and $34,000/$44,000) were set by Congress in 1984 (the 85% tier was added in 1993) and have never been indexed for inflation, so a growing share of retirees owe federal tax on their benefits every year.
Worked example: A married couple receives $30,000/year in Social Security and $25,000 from a traditional IRA withdrawal. Combined income = $25,000 + $15,000 (half of SS) = $40,000. This puts them in the “up to 50% taxable” range, meaning up to $15,000 of their $30,000 SS benefit is subject to federal tax.
How State Taxes on SS Affect Retirement Income
Example: Minnesota vs. Florida, same income
A retired couple receives $36,000/year in Social Security and $24,000 in traditional 401(k) withdrawals ($60,000 total income).
- In Florida (no SS tax, no state income tax): State tax on SS = $0
- In Minnesota (SS taxed with partial exemption): After applying Minnesota’s subtraction, a portion of SS income may be taxable at the state level, depending on their total income and the current-year subtraction thresholds. At Minnesota’s top individual income tax rate, that could mean several hundred to low thousands of dollars per year in additional state tax — confirm exact thresholds and rates at revenue.state.mn.us before estimating your own liability.
Over 20 years, even a modest annual difference compounds into real money in retirement.
The 9 States With No Income Tax at All
Within the list of SS-tax-exempt states, these states have no state income tax whatsoever — making them the most favorable for retirees drawing from multiple income sources:
| State | Income Tax | SS Tax | Other Retirement Income |
|---|---|---|---|
| Alaska | None | None | None |
| Florida | None | None | None |
| Nevada | None | None | None |
| New Hampshire | Interest/dividends only | None | None |
| South Dakota | None | None | None |
| Tennessee | None | None | None |
| Texas | None | None | None |
| Washington | None | None | None |
| Wyoming | None | None | None |
These nine states have no broad income tax, so they don’t tax Social Security, 401(k) withdrawals, or investment income; property and sales taxes still vary widely.
Should You Move States for the Tax Benefit?
Moving states purely for SS tax savings rarely makes financial sense on its own — the tax savings are meaningful but modest for most retirees. However, when combined with other retirement considerations (cost of living, proximity to family, climate, healthcare access), it’s worth factoring in.
The bigger tax planning opportunity is managing your federal SS tax through Roth conversions before claiming Social Security, which can permanently reduce or eliminate the federal tax on your benefits by reducing your traditional IRA/401(k) balance — and therefore your required minimum distributions.
See also:
- Social Security COLA 2026 — 2026 benefit amounts after the 2.8% increase
- When to Claim Social Security — timing strategy
- Reduce Taxes in Retirement — Roth conversion and withdrawal sequencing
- State Taxes on Retirement Income 2026 — full state comparison including pensions and 401(k)s
Part of the Social Security guide.
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