Which States Tax Social Security?
The list keeps getting shorter. Missouri, Nebraska and Kansas all dropped their Social Security tax in 2024, and West Virginia finished phasing its out for the 2026 tax year. Here is who is left — and why the answer matters less than it sounds.
The 8 states that still tax Social Security
| State | How it works |
|---|---|
| Colorado | Taxed, with a full deduction at 65+ and an income-tested deduction at 55–64 |
| Connecticut | Taxed above $75,000 AGI (single) / $100,000 (joint); exempt below |
| Minnesota | Taxed, with a subtraction that is full below roughly $78,000 AGI (single) / $100,000 (joint) and phases out above |
| Montana | Taxed, following the federal calculation |
| New Mexico | Taxed, but exempt below $100,000 AGI (single) / $150,000 (joint) |
| Rhode Island | Taxed, but exempt at full retirement age below roughly $104,000 AGI (single) / $130,000 (joint) |
| Utah | Taxed, offset by a retirement credit of up to $450 per person that phases out with income |
| Vermont | Taxed, exempt below $50,000 AGI (single) / $65,000 (joint) and phased out above |
Read those carefully. Almost every one exempts the benefit entirely below an income threshold, and most of those thresholds are high enough that a typical retiree pays nothing. The list is a poor guide to who actually owes tax.
The states that tax no retirement income at all
No income tax whatsoever (9): Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Income tax, but retirement income exempt (3): Illinois, Mississippi, Pennsylvania. These are the quiet winners — an ordinary income tax that simply does not reach pensions, 401(k) withdrawals or Social Security.
Exclusions large enough to cover a typical drawdown (4): Georgia, Iowa, New Jersey, North Dakota. The income class is taxable in principle; the exclusion means an ordinary retiree owes nothing in practice, and a large one may still owe.
The list keeps shrinking
Twenty-six states taxed Social Security in some form in the 1990s. Missouri and Nebraska dropped it in 2024, Kansas removed its income cliff the same year, and West Virginia completed a three-year phase-out — 35% exempt in 2024, 65% in 2025, fully exempt from 2026. The direction of travel is one way, because taxing Social Security is politically expensive and raises comparatively little.
Federal tax is the bigger number
For most retirees the federal tax on Social Security is larger than any state's, and it applies identically in all fifty states. Up to 85% of the benefit becomes taxable once provisional income crosses thresholds that have not been adjusted for inflation since the 1980s. That is the one worth planning around — see how Social Security is taxed.
Every state in detail
Retirement taxes by state
Frequently asked questions
How many states tax Social Security?
Eight, as of the 2026 tax year: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Most of them exempt the benefit entirely below an income threshold, so the number of retirees actually paying is much smaller than the list suggests.
Which states do not tax retirement income at all?
Nine states levy no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Three more — Illinois, Mississippi and Pennsylvania — have an income tax but exempt retirement income from it.
Should I move to a state that does not tax Social Security?
Rarely on that basis alone. Social Security is usually the smaller part of a retiree’s taxable income, and states without an income tax recover the revenue through property or sales taxes. Compare the whole picture — income, property, sales and estate tax — not one line of it.
Does moving states change my federal tax on Social Security?
No. The federal provisional-income rules apply identically in all fifty states. Moving changes only the state layer, which for most retirees is the smaller of the two.
More on Social Security
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