States with no state tax on social security

Q: What state taxes Social Security the least?

Nine of the 13 states in the West dont have income taxes on Social Security. Alaska, Nevada, Washington, and Wyoming dont have state income taxes at all, and Arizona, California, Hawaii, Idaho, and Oregon have special provisions exempting Social Security benefits from state taxation.

Eleven states in the U.S.— Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont — impose some form of income taxes on Social Security benefits, as of tax year 2022. The other states and District of Columbia don't tax Social Security benefits. Some states follow federal rules for determining the taxable portion of Social Security benefits, while other have their own calculations for how much of a person's Social Security benefits are subject to tax.

Key Takeaways

Eleven states impose some form of taxes on social security benefits, while most other states and the District of Columbia do not
Among those that tax social security income, many states provide exemptions for filers below certain income thresholds
You might still be subject to federal taxation on your benefits, even if you live in a state with no state-imposed tax.

Here's a state-by-state breakdown. And below that, you'll find more information on the states that tax Social Security benefits.

State	Do You Have To Pay Income Tax on Social Security Benefits?
Alabama	No
Alaska	No
Arizona	No
Arkansas	No
California	No
Colorado	Yes
Connecticut	Yes
Delaware	No
Florida	No
Georgia	No
Hawaii	No
Idaho	No
Illinois	No
Indiana	No
Iowa	No
Kansas	Yes
Kentucky	No
Louisiana	No
Maine	No
Maryland	No
Massachusetts	No
Michigan	No
Minnesota	Yes
Mississippi	No
Missouri	Yes
Montana	No
Nebraska	Yes
Nevada	No
New Hampshire	No
New Jersey	No
New Mexico	Yes
New York	No
North Carolina	No
North Dakota	No
Ohio	No
Oklahoma	No
Oregon	No
Pennsylvania	No
Rhode Island	Yes
South Carolina	No
South Dakota	No
Tennessee	No
Texas	No
Utah	Yes
Vermont	Yes
Virginia	No
Washington, D.C.	No
Washington State	No
West Virginia	No
Wisconsin	No
Wyoming	No

The eleven states below impose a tax on Social Security benefits to varying degrees.

Colorado

Colorado's pension-subtraction system exempts up to $24,000 in pension and annuity income, including some Social Security benefits. The exemption is based on your age, starting at age 55.

Connecticut

Connecticut partially or fully exempts Social Security benefits, based on a person's filing status and income.

Kansas

Kansas exempts Social Security benefits from state tax, based on the taxpayer's income. Your Social Security benefits are exempt from Kansas income tax if your federal adjusted gross income (AGI) is $75,000 or less, regardless of your filing status.

Minnesota

Minnesota partially taxes Social Security benefits. The state allows a subtraction from benefits ranging from $2,725 for married taxpayers who file separately, to $4,260 for single taxpayers, to $5,450 for married taxpayers who file jointly. The rule is subject to phaseouts starting at incomes of $82,770 for joint married filers, $41,385 for married taxpayers filing separately, and $64,670 for heads of household and single filers. The subtraction is less for these incomes and eventually phases out entirely as you earn more.

Missouri

Missouri exempts Social Security benefits from state tax, provided that the individual is age 62 or older and has adjusted gross income of less than $100,000 if married and filing jointly, or $85,000 for all other filing statuses. Those who earn more than that might qualify for the exemption if they're disabled.

Montana

Montana asks residents to use the Montana Individual Income Tax Return to determine the portion of Social Security benefits that's taxable by the state (page 5 and page 6). That might be different from the federal amount.

Nebraska

Starting 2022, Nebraska began phasing out taxation of social security benefits. The state allows a deduction for Social Security income that's included in your federal adjusted gross income if your federal AGI is less than or equal to $61,760 for married couples filing jointly, or $45,790 for all other filers.

New Mexico

Starting 2022, the state of New Mexico changed rules that would exempt most seniors from paying tax on social security benefits. This exemption is available to taxpayers with the following income thresholds — $100,000 for single filers, $150,000 for married filers filing jointly and $75,000 for married filers filing separately.

Rhode Island

Rhode Island has an exemption on Social Security taxation for those who have reached full retirement age as defined by the IRS. Eligible taxpayers must have federal AGIs of $88,950 if single, or $111,200 if married and filing jointly.

Utah

In late 2019, Utah adopted a sweeping tax bill that includes a tax credit for Social Security benefits that are included in a taxpayer's federal adjusted gross income. The AGI thresholds are $25,000 for married filing separately, $50,000 for married filing jointly and $30,000 for single filers.

Vermont

Vermont previously followed the federal rules for determining the taxable portion of Social Security benefits, and then it adopted exemptions for taxpayers with incomes below $25,000 for single filers and $32,000 for other statuses. Benefits for those with higher incomes are taxed at incremental levels, with no exemption available for AGIs of over $55,000 if single or over $70,000 if you're married and file jointly.

How This Impacts Where You Retire

You could end up ahead anyway, even if you retire in one of the states that impose a tax on Social Security benefits if all other taxes in the state are favorable, such as sales tax, gasoline tax, or property tax. And you might still be subject to federal taxation on your benefits, even if you live in a state with no state-imposed tax. So just be sure to consider all financial aspects of moving to another state, especially if you are collecting Social Security benefits.

Frequently Asked Questions (FAQs)

There are seven states — Alaska, Florida, Nevada, South Dakota, Tennessee, Texas and Wyoming— that do not impose any individual income taxes. These states also do not levy any taxes on social security benefits.

Only eleven states— Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont — impose some form of income taxes on social security benefits. The remaining states and District of Columbia do not levy taxes on social security benefits. Even among those states that collect such a tax, many offer exemptions for tax filers based on age or income considerations.

Nine of the 13 states in the West don't have income taxes on Social Security. Alaska, Nevada, Washington, and Wyoming don't have state income taxes at all, and Arizona, California, Hawaii, Idaho, and Oregon have special provisions exempting Social Security benefits from state taxation.

Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the cost of living is about 11% below the national average, while one-bedroom rents are about one-third less than national norms.