Thirteen states have no income tax on Social Security benefits
Thirty-seven states do not tax Social Security income at all. That means if you live in Alaska, Florida, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, Wyoming, or Alabama, your Social Security payments are not subject to state income tax. The other thirteen states tax Social Security under certain conditions — usually based on your total income or filing status.
Whether your benefits are taxed depends entirely on where you live, not on federal rules. The federal government taxes Social Security for some people based on "combined income" (your adjusted gross income plus non-taxable interest plus half your Social Security), but state taxes work differently in each state. Some states follow the federal rule, some use their own income thresholds, and some exempt Social Security entirely regardless of how much money you have.
Key Takeaways
- Thirteen states tax Social Security benefits based on income thresholds or filing status: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
- Thirty-seven states, including major retirement destinations like Florida and Texas, do not tax Social Security income under any circumstances.
- Your state of residence at the time you file your state tax return determines which rules explore, not the state where you worked or where you were born.
- Even in states that tax Social Security, exemptions or deductions often reduce or eliminate the tax for people with moderate incomes.
The thirteen states that do tax Social Security
Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all tax Social Security benefits, but the rules vary by state. Some use income thresholds similar to federal rules, while others tax it as regular income once you reach a certain filing status or income level.
Colorado and Kansas, for example, tax Social Security only if your federal taxable income exceeds a threshold — around $25,000 for single filers in Colorado. Connecticut taxes it only for people with modified adjusted gross income over $100,000. Minnesota and Missouri have their own income limits and often allow exemptions for people over a certain age. Nebraska taxes Social Security as regular income but allows a deduction that phases out as income rises.
The specifics change year to year and depend on your age, filing status, and total income. If you live in one of these states, your state tax return instructions or a tax preparer familiar with your state's rules can tell you whether you owe tax on your benefits in your particular situation.
States with no Social Security tax at any income level
Alaska, Florida, Illinois, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming do not tax Social Security benefits under any circumstances. This applies whether you have $20,000 in annual income or $200,000. Your Social Security check is not subject to state income tax in these states, period.
Some of these states (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming) have no state income tax at all, so they cannot tax Social Security. Others (Illinois, Mississippi, New Hampshire, and Pennsylvania) have state income tax but have chosen to exempt Social Security from it. New Hampshire, for instance, taxes interest and dividend income but not Social Security or wages.
How to learn about you owe state tax on your benefits
Start with your state's tax authority website. Most state revenue or tax department sites have a section on Social Security taxation that explains the rules for your state and your filing status. You can also read your state's tax return instructions — they usually include a worksheet or explanation of how Social Security is treated.
If your state does tax Social Security, the worksheet will ask you to calculate your "combined income" or "modified adjusted gross income" and compare it to your state's threshold. If you are below the threshold, you owe no state tax on your benefits. If you are above it, the worksheet shows you how much of your Social Security is taxable.
A tax preparer or accountant who works in your state can also answer this question quickly. Many offer a free initial consultation, and they can tell you not only whether you owe tax but also whether you should be having taxes withheld from your Social Security check to avoid a bill at tax time.
What to do if you move to a different state
Your state of residence on the date you file your tax return is what matters. If you move from a state that taxes Social Security to one that does not, you will not owe tax on your benefits starting in the year you establish residency in the new state. If you move the other direction, you may start owing tax.
Residency is usually established by where you live on December 31 of the tax year, though some states have different rules for people who move mid-year. If you are planning a move and Social Security taxation is a factor, check your new state's rules before you go. Some states also have reciprocal agreements or special rules for people who move after retirement, so it is worth asking your new state's tax authority directly.
How state taxes on Social Security differ from federal taxes
The federal government uses "combined income" to decide whether to tax your Social Security: your adjusted gross income plus non-taxable interest plus half your Social Security benefits. If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), some of your benefits become taxable federally.
States that tax Social Security do not all use the same formula. Some use combined income like the federal government does. Others use "modified adjusted gross income" or straightforward your total income. A few tax Social Security as ordinary income once you reach a certain income level, regardless of the formula. This is why you can owe federal tax on your benefits but no state tax, or vice versa.
You will file both a federal return (Form 1040) and a state return if your state requires it. The federal return determines federal tax on your Social Security. Your state return, using your state's own rules, determines state tax. They are separate calculations.
Withholding taxes from your Social Security check
If you expect to owe state income tax on your Social Security benefits, you can ask the Social Security Administration to withhold federal income tax from your check. You cannot request state tax withholding directly from Social Security, but federal withholding can help you avoid a large bill at tax time.
To set up withholding, contact Social Security by phone at 1-800-772-1213, visit your local Social Security office, or use your my Social Security account online. You will fill out Form W-4V (Voluntary Withholding Request). You can choose to have 7, 10, 12, or 22 percent of your benefit withheld. Some people use this as a rough way to cover both federal and state tax, though the exact amount depends on your total income and your state's rules.
Frequently Asked Questions
If I move to a state that doesn't tax Social Security, will I get a refund on taxes I already paid?
No. State income taxes are based on the year you earned the income and where you lived that year. If you paid state tax on Social Security in a previous year while living in a state that taxed it, that tax is final. Moving to a no-tax state only affects future years.
Does my spouse's state of residence matter if we file jointly?
If you and your spouse live in different states, you may each file in your own state, or you may file jointly in one state and separately in the other, depending on state rules. This gets complicated — a tax preparer in your situation can tell you which approach saves the most money.
If I work in one state but live in another, which state's rules explore?
Your state of residence applies. Social Security is not earned income, so it does not matter where you worked. Your state of residence on the date you file your return determines which state's Social Security tax rules explore to you.
Can I avoid state tax on Social Security by moving temporarily?
No. You must establish legal residency in a new state, which usually means living there for at least part of the year and intending to stay. Moving for a few months and then returning will not change your residency status or your tax obligations.
What if my state's rules changed after I retired?
State tax laws do change. If your state recently started taxing Social Security or changed its thresholds, the new rules explore to you going forward. Check your state's tax authority website each year to see if anything has changed that affects your return.