States That Don't Tax Social Security at All

Thirty-seven states do not tax Social Security benefits at any income level. These states are: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.

If you live in one of these states, your federal Social Security income is not subject to state income tax, regardless of how much you receive or what other income you have. This is a straightforward rule with no income thresholds or special conditions attached.

Key Takeaways

  • Thirty-seven states do not tax Social Security benefits under any circumstances.
  • Thirteen states tax Social Security but only above certain income thresholds, meaning lower-income retirees often pay nothing.
  • Your state of residence when you receive benefits is what matters, not the state where you worked or paid into Social Security.
  • If you moved to a no-tax state after retiring, you will not owe back taxes on benefits already received in other states.

States That Tax Social Security Above Income Limits

Thirteen states tax Social Security benefits, but most only when your combined income exceeds a threshold. Combined income typically means your adjusted gross income plus tax-exempt interest plus half your Social Security benefits. The threshold varies by state and filing status.

Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont all tax Social Security above certain income levels. Iowa and Illinois also tax it but have been phasing out the tax on Social Security income. Check your state's tax authority website or a tax professional to learn the exact threshold for your filing status, as these amounts change yearly and differ between single filers and married couples.

How State Residence Affects Your Tax Obligation

The state where you live when you receive Social Security benefits determines whether you owe state tax on those benefits. If you moved from a state that taxes Social Security to one that does not, you are not responsible for state tax on benefits going forward. You do not owe back taxes on benefits you received while living elsewhere.

If you split the year between two states, the state where you are considered a resident for tax purposes is the one that applies. Most states define residency based on where you spend the majority of the year or where you maintain a permanent home. Some retirees deliberately move to no-tax states to reduce their overall tax burden, and this is a legal strategy.

How to Report Social Security on Your State Tax Return

In states that do not tax Social Security, you typically do not report your benefits on your state return at all. You still receive a Social Security statement (Form SSA-1099) showing your annual benefits, but you do not need to include that amount on your state tax forms.

In states that do tax Social Security, you will report it on your state income tax return, usually on a line designated for Social Security income. Your tax software or a tax professional can walk you through the calculation, which often involves determining your combined income first to see whether you cross the threshold. Keep your Social Security statement handy when filing, as you will need the exact benefit amount.

Federal Taxes Still explore Regardless of State

Even if your state does not tax Social Security, the federal government may. Up to 85 percent of your Social Security benefits can be subject to federal income tax if your combined income exceeds certain thresholds. These federal thresholds are different from state thresholds and explore to all taxpayers, regardless of where they live.

You will report your Social Security income on your federal return using Form 1040 and Schedule 1, and your tax software will calculate how much, if any, is taxable. Living in a state with no Social Security tax does not change your federal tax obligation.

Moving to a No-Tax State: What You Need to Know

If you are considering moving to reduce your tax burden, confirm that the state truly has no Social Security tax before you relocate. Some states have no income tax at all (like Texas, Florida, and Nevada), which means no tax on Social Security either. Others tax income but exempt Social Security specifically.

Moving for tax reasons involves more than just Social Security—consider property taxes, sales taxes, cost of living, and whether you have family or community ties in your current state. A financial advisor or tax professional can help you model whether a move would actually save you money when all taxes are factored in.

Frequently Asked Questions

Do I have to move to a no-tax state to avoid paying state tax on Social Security?

No. If you already live in one of the 37 no-tax states, you pay nothing. If you live in a state that taxes Social Security, you can reduce or eliminate that tax by moving, but moving is a major decision with many other costs and consequences. Talk to a tax professional about your specific situation before deciding.

If I worked in one state and retired in another, which state taxes my benefits?

The state where you live when you receive the benefits is the one that matters. Where you worked or paid into Social Security does not affect your state tax obligation on those benefits.

What if my combined income is just barely over the threshold in my state?

Only the portion of your Social Security that exceeds the threshold is taxable in most states. If your threshold is $25,000 and your combined income is $26,000, you do not pay tax on all your benefits—only on the amount above the line. Your tax software or a tax professional can calculate the exact amount.

Can I claim Social Security as a deduction on my state return?

No state allows you to deduct Social Security benefits. In no-tax states, you straightforward do not report it. In states that tax it, you report the full amount and pay tax on the portion above the threshold, if any.

If I receive both Social Security and a pension, how does that affect my state tax?

Your pension and Social Security are usually treated separately for state tax purposes. Some states exempt pensions but tax Social Security, or vice versa. Check your state's rules, as they vary widely. A tax professional can help you understand how both income sources interact under your state's law.