States That Tax Social Security Benefits in 2025
June 12, 2025
Good News: Most States Don't Tax Social Security
Out of 50 states, 41 states do NOT tax Social Security benefits at all. If you live in one of those 41 states, your Social Security check is 100% state-tax-free.
States That DO Tax Social Security (2025)
Only these states may tax a portion of your Social Security:
| State | Who Pays | Threshold |
|---|---|---|
| Colorado | High earners | Exempt if AGI below $75K (single) / $95K (joint) for 55-64; fully exempt 65+ |
| Connecticut | High earners | Exempt if AGI below $75K (single) / $100K (joint) |
| Kansas | High earners | Exempt if AGI below $75K |
| Minnesota | Most recipients | Subtraction available but partial; follows federal taxability |
| Missouri | High earners | Exempt if AGI below $100K (joint) |
| Montana | Some recipients | Partially taxed; deduction available |
| Nebraska | Phasing out | Fully exempt as of 2024 |
| New Mexico | High earners | Exempt if income below $100K (joint) |
| Rhode Island | High earners | Exempt if AGI below $101,000 |
| Utah | Being phased | Tax credit available to offset |
| Vermont | Most recipients | Follows federal taxability rules |
| West Virginia | Being phased out | Fully exempt by 2026 |
The Trend: States Are Eliminating It
The trend is clearly toward exemption. In recent years:
Within a few years, fewer than 5 states may still tax Social Security.
How Federal Social Security Taxation Works
Before worrying about state tax, remember the federal rules:
"Combined income" = AGI + nontaxable interest + half of SS benefits.
States that "tax Social Security" generally follow these federal rules — they tax the same portion that's taxable federally.
What This Means in Dollar Terms
If you receive $30,000/year in Social Security and live in a state that taxes it:
Moving from Minnesota to Florida would save you that ~$1,275/year in state tax on Social Security alone.
Best States for Social Security Recipients
States with no income tax AND no Social Security tax (obviously):
1. Florida
2. Texas
3. Tennessee
4. Nevada
5. Wyoming
6. South Dakota
7. Alaska
8. Washington
9. New Hampshire
States WITH income tax that STILL exempt Social Security: