All the States That Don’t Tax Social Security

 8 days ago

It can be a rude awakening to many retirees to learn that the federal government, in certain circumstances, taxes Social Security benefits. Even more surprising to some is that certain individual states also apply their own income tax to Social Security payouts. Fortunately, not many states fall into this category. Even those that do tax Social Security often provide exemptions or ways to reduce or eliminate the tax, typically based on age or income. Here’s a list of the states that don’t tax Social Security .

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States That Don’t Tax Social Security

Thirty-seven states plus the District of Columbia do not tax Social Security benefits. These states include the nine that don’t have any income tax at all, which are:

  • Alaska
  • Florida
  • Nevada
  • New Hampshire
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

Note that while New Hampshire does impose a 5% tax on investment income (dividends and interest earned), it does not tax wages or Social Security payouts.

The remaining 32 out of those 37 states, plus the District of Columbia, implement various credits or exemptions to help taxpayers avoid state-level Social Security taxes. These states are:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Delaware
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Minnesota
  • Mississippi
  • New Jersey
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Virginia
  • West Virginia
  • Wisconsin
  • Washington, D.C.

If you live in any of these states — or the District of Columbia — you won’t have to worry about paying state taxes on your Social Security income.

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States That Reduce Social Security Taxation Based on Age or Income

  • Colorado

Retirees from ages 55 to 64 are able to deduct up to $20,000 in retirement income, including Social Security benefits, and those 65 or older can deduct up to $24,000. As of this year, Colorado residents can deduct all federally taxable Social Security benefits.

  • Connecticut

Retirees whose adjusted gross income is than $75,000 for a single filer and $100,000 for joint filers can deduct most or all of their benefit income, according to Investopedia. For people who make more than these thresholds, they can still deduct 75% of Social Security benefit payments.

  • Kansas

In Kansas, if your adjusted gross income is $75,000 or less, you don’t have to pay state taxes on your benefits, no matter your filing status.

  • Missouri

Although Social Security is taxable in Missouri, many seniors will not have to, specifically those who have an adjusted gross income of less than $85,000 (single filers/heads of household) or $100,000 (joint filers), according to SmartAsset.

  • Montana

For many retirees in Montana, Social Security is taxable. However, taxpayers who make less than $25,000 (single filers) and $32,000 (joint filers) can deduct all of their Social Security retirement income, according to SmartAsset.

  • Nebraska

Currently, Social Security benefits are still taxable in Nebraska, though on a sliding scale based on adjusted gross income, according to SmartAsset. [ x ] However, thanks to recent legislation, the state will phase out the state income tax on benefits by 2025, according to AARP.

  • New Mexico

In the state of New Mexico, low income retirees 65 and older can take an $8,000 exemption on Social Security 65 and older if they have an adjusted gross income of $28,500 (single filer) or $51,000 (joint filers), according to

  • Rhode Island

You do not have to pay taxes on Social Security in Rhode Island if you’ve reached full retirement age, per the Social Security Administration guidelines, and have an adjusted gross income that falls below $86,350 (single filers/head of household) or  $107,950 (joint filers), according to AARP.

  • Vermont

Vermont lawmakers recently voted to increase the income threshold that would exempt retirees from paying taxes on their Social Security benefits, according to AARP. Single filers with an adjusted gross income of $50,000 or less can now receive full exemption from paying state taxes on their benefits. If you make between $50,000 and $60,000, you’re eligible for a partial exemption.

For joint filers, you can get the full exemption at incomes of $65,000 or less, and partial exemption for incomes between $65,000 and $75,000.

Utah: Recent Changes

Until 2021, Utah was the only state that taxed Social Security benefits the same way that the federal government does. Under the federal government’s system, Social Security was taxed based on a formula involving a taxpayer’s filing status and the size of their “combined income,” which was a combination of adjusted gross income, nontaxable interest and half of Social Security benefits. However, the state recently capitulated and now uses its own income-based tax credit system to offset Social Security income for single filers earning less than $30,000 and joint filers drawing less than $50,000. Those who earn more than those thresholds can still get a partial exemption on their benefits-the tax credit is reduced by 25 cents for each dollar above the income thresholds mentioned above, according to AARP.

John Csiszar contributed to the reporting for this article.

Information is up to date as of Sept. 5, 2022.

This article originally appeared on : All the States That Don’t Tax Social Security

Comments / 84

Patricia Coll

Senior Citizens who are not wealthy should not have to pay state or federal taxes on their social security payments as they already paid when they were working!! In addition they should not have to pay school taxes and should not have to pay or have a very low tax on their property that they have paid for for many years!!

Rebecca Faux

Social Security should be there for the people that put into it. Unfortunately our great politicians in the past decided they would use it for other than what it was meant to . I heard they wanted to say it was a government benefit but it is not ! It is money we paid into Trusting our government to see over it!!!

Nan Bowen

NS I’m a senior citizen a widow I was marred 40 years to my husband before he passed. We raised 3 children together. I don’t think it’s right that a widow only gets a pittance from there’s husbands social Security. I and most Women work 24/7 doing there jobs at home and working out side the home. Being a mom alone is a 24/7 job but there is so much more we take care of. I loved being a wife and a mom so being the person that stands by there husband doesn’t count count. So the government screws us in the end one way our another. I agree no one should ever have to pay any kind of tax on their Social Security but I think they should pay widows their husbands full Social Security.


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