States with no tax on social security

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.

How States Tax Social Security Income

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

StateDo You Have To Pay Income Tax on Social Security Benefits?AlabamaNo AlaskaNo ArizonaNo ArkansasNo CaliforniaNo  ColoradoYesConnecticutYesDelawareNoFloridaNo  GeorgiaNo  HawaiiNo  IdahoNo  IllinoisNo  IndianaNo  IowaNo  KansasYesKentuckyNo  LouisianaNo  MaineNo  MarylandNo  MassachusettsNo  MichiganNo  MinnesotaYesMississippiNo  MissouriYesMontanaNoNebraskaYesNevadaNo  New HampshireNo  New JerseyNo  New MexicoYesNew YorkNo  North CarolinaNo  North DakotaNoOhioNo  OklahomaNo  OregonNo  PennsylvaniaNo  Rhode IslandYesSouth CarolinaNo  South DakotaNo  TennesseeNo  TexasNo  UtahYesVermontYesVirginiaNo  Washington, D.C.NoWashington StateNoWest VirginiaNoWisconsinNoWyomingNo

State Social Security Tax and Exemptions

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)

Which states don't tax social security and don't have income tax?

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.

Which states do not tax 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.

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Sources

The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy.

1. Colorado Department of Revenue. "Individual Income Tax | Information for Retirees."

2. State of Connecticut Department of Revenue Services. "Taxability of Social Security Benefits for Connecticut Income Tax Purposes," Page 1.

3. Kansas Department of Revenue. "Frequently Asked Questions About Individual Income."

4. Minnesota Department of Revenue. "Individual Income Tax Social Security Subtraction Increase."

5. Missouri Department of Revenue. "Am I Eligible?"

6. Montana Department of Revenue. "2021 Montana Individual Income Tax Return."

7. Nebraska Department of Revenue. "2022 Nebraska Legislative Changes."

8. Taxation and Revenue, New Mexico. "Gov. Michelle Lujan Grisham eliminates tax on Social Security."

9. Rhode Island Department of Revenue Division of Taxation. "Inflation-Adjusted Amounts Set for Tax Year 2022," (Download PDF).

10. West Virginia State Tax Department. "West Virginia Personal Income Tax Act."

11. Utah State Legislature. "Utah Code Section 59-10-1042: Nonrefundable Tax Credit for Social Security Benefits."

    What is the best state to live on Social Security?

    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.

    What state taxes Social Security the least?

    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.

    What states have the lowest taxes for retirees?

    They tend to have low property tax rates and/or reasonable sales tax rates, too. Take a look and see for yourself. We list the most tax-friendly state for retirees last..

    Tennessee. State Income Tax Range: None. ... .

    Arizona. ... .

    Alabama. ... .

    Colorado. ... .

    South Carolina. ... .

    Nevada. ... .

    District of Columbia. ... .

    Wyoming..

    What state is best financially to retire in?

    For those of us who want to retire in the U.S., there are nine states that have no state income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.