States That Tax Social Security (2026 List)

Most U.S. states do not tax Social Security benefits at the state level, making Social Security largely tax-free for retirees in much of the country.

However, a small number of states still impose state income tax on at least a portion of Social Security benefits based on income or filing status.

Overview of States That Tax Social Security

As of 2026, only a handful of states tax Social Security benefits, and many of those provide exemptions for low-income retirees.

Notably, West Virginia has completed a phase-out of its Social Security tax for the 2026 tax year, reducing the number of taxing states.

States That Tax Social Security Benefits

The following states may tax Social Security benefits for certain taxpayers, generally using income thresholds or adjusted gross income (AGI) to determine whether benefits are taxable:

• Colorado
• Connecticut
• Minnesota
• Montana
• New Mexico
• Rhode Island
• Utah
• Vermont

Example: In Colorado, Social Security benefits can be taxed, but seniors age 65 and older may deduct all federally taxable Social Security income up to certain AGI limits before state tax applies.

Income-Based Rules and Exemptions

Many of these states do not tax Social Security across the board. Instead, they exempt a portion of benefits or apply tax only when combined income exceeds specified thresholds.

Example: In New Mexico, lower-income seniors with combined income below certain levels may owe no state tax on Social Security, while higher-income retirees may face state taxation.

States That Do Not Tax Social Security

The majority of states—41 states plus the District of Columbia—do not tax Social Security at the state level. This includes all states with no individual income tax and those that explicitly exempt Social Security benefits from taxable income.

Example: A retiree living in California keeps their full Social Security benefit without state income tax, even if they owe federal tax on a portion of it.

Why Some States Still Tax Benefits

States that tax Social Security often do so as part of broader income tax structures. Some also provide offsets or exemptions to reduce the burden for retirees with moderate incomes.

Example: Utah offers a Social Security tax credit worksheet that can reduce or eliminate state tax depending on filing status and income.

Important Planning Tip

If you live in or are considering relocating to a state that taxes Social Security benefits, review the income thresholds and exemptions carefully.

Timing distributions from retirement accounts or managing other income sources can help you stay below state taxation thresholds 💡

Electronic Filing Recommendation

💻 Electronic filing is strongly recommended when combining Social Security with other income on state and federal returns.

E-filing helps senior taxpayers:

• Accurately calculate combined income and taxable benefits
• Automatically apply state-specific exemptions or thresholds
• Reduce errors on both federal and state returns
• Ensure correct state tax treatment of retirement income
• Maintain clean digital records for future planning

Summary

While most states do not tax Social Security benefits, eight states still may impose a state income tax on a portion of those benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.

Many of these states use income-based exemptions to protect low-income retirees. West Virginia has fully phased out its Social Security tax beginning with the 2026 tax year, reducing the number of taxing states.

For retirees, understanding both federal and state tax treatment of Social Security can help minimize taxes and improve retirement planning.