States That Do Not Tax Social Security

Thirty-seven states do not tax Social Security income at all. That means if you live in one of these states, your Social Security benefit is yours to keep without any state income tax withheld or owed. The states that exempt Social Security are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The remaining thirteen states do tax Social Security income to some degree, though most of them offer partial exemptions or only tax it for higher-income households. These states are: Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. (Note: some states appear in both lists because their tax rules changed or because they tax it only under certain conditions.)

Whether your state taxes Social Security depends on your state of residence when you receive the benefit, not where you lived when you worked or where you paid into the system. If you move to a different state after you start receiving benefits, your tax situation changes based on your new state's rules.

Key Takeaways

  • Thirty-seven states impose no state income tax on Social Security benefits, meaning you owe nothing to that state regardless of your income level.
  • Thirteen states tax Social Security income, but most offer exemptions for lower-income households or retirees over a certain age.
  • Your state of residence at the time you receive benefits determines which tax rules explore, not where you worked.
  • If you are considering a move in retirement, comparing state tax treatment of Social Security can meaningfully affect your annual tax bill.

How the Thirteen States That Do Tax Social Security Handle It

Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all tax Social Security to some degree, but the rules vary widely. Some states tax it only if your total income exceeds a threshold. Others exempt it entirely for people over a certain age or with income below a set level.

For example, Kansas taxes Social Security but exempts it if you are 55 or older. Missouri taxes it but exempts households with income below $32,000 (single) or $50,000 (married filing jointly). Vermont taxes it but exempts it for people 65 and older with income below $24,000 (single) or $32,000 (married). The exact thresholds and age cutoffs change from year to year, so you should check your state's current rules before filing.

Nebraska, New Mexico, and Rhode Island have their own formulas based on federal taxable income and age. If you live in one of these states, your state tax return will ask specifically about Social Security income, and you may owe tax on part or all of it depending on your total income and age.

What "No State Income Tax" Actually Means

Nine states have no state income tax at all: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. In these states, Social Security is not taxed because the state does not tax any income. You will owe no state income tax on Social Security, wages, investment income, or anything else.

The other twenty-eight states that do not tax Social Security still have state income tax — they just chose to exempt Social Security specifically. This means you may owe state income tax on wages, pensions, or investment income, but not on Social Security. New Hampshire, for instance, has no income tax on wages or Social Security, but does tax interest and dividends.

How to Find Out What Your State Taxes

The simplest way to learn your state's current rules is to visit your state's department of revenue website and search for "Social Security" or "retirement income." Most states publish a fact sheet or guide specifically for retirees. You can also call your state's tax help line — the number is usually on your state income tax form.

If you are considering moving, contact the tax department of the state you are thinking about moving to and ask them directly whether Social Security is taxed and at what income level. Tax rules change, and what was true five years ago may not be true now. Getting the current rule in writing from the state itself is the safest approach.

Your Social Security statement does not tell you whether your state taxes benefits — that is a state tax question, not a federal one. The Social Security Administration does not withhold state income tax automatically, so if your state does tax Social Security, you may need to make quarterly estimated tax payments or request withholding from your benefit check.

Whether to Request Tax Withholding From Your Benefit Check

If you live in a state that taxes Social Security and you expect to owe tax, you can ask Social Security to withhold federal income tax, state income tax, or both from your monthly benefit. This is optional — you can also pay estimated taxes quarterly or pay the full amount when you file your return.

To set up withholding, you fill out Form W-4V (Voluntary Withholding Request) and send it to your local Social Security office or submit it online through your my Social Security account. You can change your withholding amount or stop it at any time. Many people choose withholding because it spreads the tax bill across the year rather than facing a large bill at tax time.

If you do not request withholding and your state taxes Social Security, you are responsible for paying the tax yourself — either through quarterly estimated payments or when you file your annual return. Failing to pay can result in penalties and interest, so if you are unsure whether you owe, contact a tax professional or your state's tax department.

Moving to a No-Tax State in Retirement

Some people move specifically to avoid state income tax on Social Security. If you are considering this, keep in mind that state income tax is only one part of your total tax picture. You also need to consider property taxes, sales taxes, and the overall cost of living in the state you are moving to.

For example, Florida and Texas have no state income tax on Social Security, but they may have higher property taxes or sales taxes than your current state. Nevada has no income tax but high property taxes in some counties. Do the full math before deciding to move based on tax alone.

Also, establishing residency in a new state takes time. Most states require you to show that you actually live there — through a driver's license, voter registration, property ownership, or utility bills. If you move partway through the year, you may owe tax to both your old state and your new state for that year. Consult a tax professional before making the move if you want to understand the full impact.

Frequently Asked Questions

If I move from a state that taxes Social Security to one that does not, do I get a refund?

No. If you already paid state income tax on Social Security in your old state, that money does not come back. However, once you establish residency in your new state, you will not owe tax on Social Security going forward. You may be able to claim a credit on your old state's return for taxes paid if you lived there only part of the year.

Does the federal government tax Social Security?

Yes, the federal government may tax Social Security depending on your total income. State taxation is separate from federal taxation. Even if your state does not tax Social Security, you may still owe federal income tax on it. You can request federal withholding on Form W-4V just as you would for state tax.

What counts as income for the purpose of the state tax threshold?

Most states use your federal adjusted gross income (AGI) or modified AGI to determine whether you exceed the threshold for taxing Social Security. This includes wages, pensions, investment income, and other sources. The exact definition varies by state, so check your state's instructions or contact the tax department to be sure.

Can I claim Social Security as a dependent on my taxes if I live in a state that taxes it?

No. Social Security is not a dependent. Whether you can claim yourself or someone else as a dependent is a separate question from whether your state taxes Social Security income. The two rules do not affect each other.

If I work part-time in retirement, does that change whether my state taxes Social Security?

It may. If your state taxes Social Security only for people with income above a certain threshold, adding wages from part-time work could push you over that threshold. You would then owe tax on Social Security even if you would not have without the wages. Check your state's rules to see how earned income affects the threshold.