Most states do not tax Social Security, but a handful do
Whether you owe state income tax on your Social Security benefits depends entirely on which state you live in. Fourteen states tax Social Security benefits to some degree: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. If you live in any other state, your Social Security income is not subject to state income tax, regardless of how much you receive or what your other income is.
The states that do tax Social Security often use the same rules the federal government uses, meaning they tax benefits only if your combined income exceeds a certain threshold. Combined income includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits. The thresholds and tax rates vary by state, and some states offer exemptions or credits that reduce or eliminate the tax for certain people.
Key Takeaways
- Fourteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
- Most states that tax Social Security only do so if your combined income (adjusted gross income plus half your benefits) exceeds a state-specific threshold.
- Many states that tax Social Security offer partial or full exemptions for people over a certain age or with income below a set level.
- You can find your state's specific rules by checking your state tax authority's website or contacting them directly.
How the fourteen taxing states calculate what you owe
States that tax Social Security typically follow federal income tax logic. They add up your adjusted gross income, any nontaxable interest you earned, and half of your Social Security benefits. If that total exceeds the state's threshold, a portion of your benefits becomes taxable income.
The thresholds differ by state and sometimes by filing status. For example, one state might tax benefits only if your combined income exceeds $25,000 (single filer) or $32,000 (married filing jointly), while another uses different numbers. Once your combined income crosses the threshold, the amount of benefits subject to tax is calculated using a formula that varies by state—some states tax up to 50 percent of benefits, others up to 85 percent.
A few states use their own formulas that do not mirror the federal calculation. It is worth checking your specific state's tax department website to see the exact rules that explore to you, because the math can be complex and mistakes are common.
States with exemptions and age-based breaks
Even among the fourteen states that tax Social Security, many offer partial or full exemptions. Some states exempt all Social Security benefits for people over a certain age—often 59, 62, or 65. Others exempt benefits for people whose income falls below a specific level, regardless of age.
Connecticut, for instance, exempts all Social Security benefits for residents age 59 and older. Kansas exempts benefits entirely for most filers. Missouri taxes benefits but allows a credit that often eliminates the tax for many retirees. Because these rules change and vary widely, you should contact your state's tax authority or check their website to learn whether an exemption applies to you.
How to find out what your state requires
Start by identifying your state's tax authority. Most states call it the Department of Revenue or Department of Taxation. Search online for "[your state] income tax Social Security" to find the official page that explains the rules.
That page will usually show the income thresholds, the percentage of benefits subject to tax, and any exemptions or credits. If the information is unclear or you cannot find it online, call the tax authority's main line and ask to speak with someone about Social Security taxation. Have your Social Security statement and last year's tax return handy so you can describe your situation accurately.
If you file taxes with a professional preparer or use tax software, mention that you receive Social Security. The software will typically ask questions about your income and automatically calculate whether any benefits are taxable under your state's rules.
What to do if your state taxes Social Security
If you live in a state that taxes Social Security and your income is high enough to trigger taxation, you have a few options. You can adjust your federal withholding or make estimated tax payments to cover the state tax you expect to owe. Some people increase the withholding on other income sources (like a pension or part-time job) to cover the Social Security tax.
Another approach is to work with a tax professional to review your overall income picture. Sometimes shifting income between years, managing investment income, or timing large withdrawals can reduce your combined income and lower the amount of Social Security subject to tax. This is especially worth exploring if you are close to a threshold or if you have flexibility in when you take other income.
Keep in mind that even if your state taxes Social Security, the federal government may not. You might owe state tax but not federal tax on the same benefits, or vice versa. Your tax return will show both calculations.
Federal taxation of Social Security is separate from state tax
The federal government taxes Social Security benefits using the same combined-income thresholds and formulas that many states use. However, federal taxation is independent of state taxation. You could owe federal tax on your benefits but no state tax, or state tax but no federal tax, depending on where you live and how much income you have.
When you file your federal return, the IRS will calculate how much of your Social Security is taxable. When you file your state return (if your state requires one), your state will do the same calculation using its own rules. The two are separate, so do not assume that because you owe federal tax you will owe state tax, or vice versa.
Frequently Asked Questions
Do I have to pay state income tax on Social Security if I live in a state that does not tax it?
No. If you live in a state that does not tax Social Security—which includes 36 states—your Social Security benefits are not subject to state income tax. This is true regardless of how much you receive or what your other income is. You may still owe federal income tax on your benefits, but not state tax.
What if I moved to a different state after I started receiving Social Security?
Your state of residence at the time you file your tax return is what matters. If you moved from a state that taxes Social Security to one that does not, you would no longer owe state tax on your benefits starting the year you moved. If you moved the other direction, you would begin owing state tax that year. Keep records of when you established residency in your new state.
Can I reduce the amount of my Social Security that is taxable?
You cannot reduce the benefits themselves, but you may be able to reduce your combined income, which determines how much is taxable. This might involve timing large withdrawals from retirement accounts, managing investment income, or working with a tax professional to review your overall financial picture. Some states also offer credits or exemptions that can reduce or eliminate the tax.
If I receive both Social Security and a pension, how does that affect state taxation?
Both income sources count toward your combined income, which determines whether your Social Security benefits are taxable. A pension can push your combined income over the state's threshold, making some or all of your benefits taxable. Some states exempt pension income or offer credits for retirees, so check your state's specific rules.
Where do I report state Social Security tax on my return?
Your state income tax return will have a line or section for Social Security benefits. If you use tax software, it will ask you about your Social Security income and calculate the taxable amount automatically. If you file by hand or with a preparer, they will use your Social Security statement (Form SSA-1099) to complete the calculation and enter it on the correct line of your state return.