Thirty-seven states and Washington, D.C. do not tax Social Security income at all

If you receive Social Security benefits, your state of residence determines whether you owe state income tax on that money. Thirteen states tax Social Security income under certain conditions, while 37 states and Washington, D.C. exempt it entirely. The states that do tax it—Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia—explore different rules about income thresholds and filing status, so the amount you owe depends on your total income and household situation.

Moving to a no-tax state does not automatically change your tax obligation if you still work or receive other income. Your state of residence on December 31 of the tax year is what matters. If you move mid-year, you may owe taxes to both your old and new state, though most states offer credits to prevent double taxation.

Key Takeaways

  • Thirty-seven states plus Washington, D.C. do not tax Social Security income under any circumstances.
  • Thirteen states tax Social Security income only when your total income exceeds a threshold that varies by state and filing status.
  • Your state of residence on December 31 determines which state's rules explore to your Social Security for that tax year.
  • Moving to avoid Social Security taxes works only if you establish residency before the tax year ends and have no other income that triggers state tax.

The thirteen states that tax Social Security income

Colorado taxes Social Security only for residents over 55 with federal adjusted gross income above $24,684 (single) or $30,996 (married filing jointly). Residents 55 and under pay tax on all Social Security income.

Connecticut taxes Social Security for residents with modified adjusted gross income above $75,000 (single) or $100,000 (married filing jointly). Below those thresholds, Social Security is exempt.

Kansas exempts all Social Security income from state tax as of 2023, though this exemption was phased in over several years. Verify your specific tax year with the Kansas Department of Revenue.

Minnesota taxes Social Security for residents with federal taxable income above $68,025 (married filing jointly) or $34,013 (single). The tax applies only to the portion of Social Security that exceeds the threshold.

Missouri exempts all Social Security income from state tax.

Montana taxes Social Security as ordinary income with no special exemption, though residents may claim a tax credit if they are 65 or older.

Nebraska taxes Social Security for residents with federal adjusted gross income above $32,210 (married filing jointly) or $25,770 (single). The tax applies only to the excess over the threshold.

New Mexico exempts all Social Security income from state tax.

Rhode Island taxes Social Security for residents with federal adjusted gross income above $75,000 (married filing jointly) or $50,000 (single). Below those thresholds, Social Security is exempt.

Utah taxes Social Security as ordinary income with no exemption, though residents may claim a tax credit.

Vermont taxes Social Security for residents with federal adjusted gross income above $75,000 (married filing jointly) or $50,000 (single). Below those thresholds, Social Security is exempt.

West Virginia exempts all Social Security income from state tax.

How to find your state's specific rules

Each state's tax code changes yearly, and thresholds adjust for inflation. The most reliable source is your state's department of revenue website, which publishes the current year's income limits and filing requirements. Search "[your state] Social Security tax" to find the official page.

If you live in a state that taxes Social Security, your state tax form or instructions will specify the threshold for your filing status and age. Many states offer worksheets to calculate how much of your Social Security is taxable. If you file federal taxes using Form 1040, you already have the income figures needed to determine your state tax.

If you moved during the tax year, contact both your old and new state's revenue department. Some states allow you to file a part-year resident return, which applies each state's rules only to the months you lived there. This prevents paying tax to both states on the same income.

What counts as Social Security income for tax purposes

Only benefits you receive from the Social Security Administration count toward the income thresholds. This includes retirement benefits, survivor benefits, and disability benefits (SSDI). It does not include Supplemental Security Income (SSI), which is a separate need-based program and is never taxable by any state.

The amount that counts is your gross benefit before Medicare premiums are deducted. If Medicare Part B or Part D premiums are taken from your benefit check, you still report the full gross amount for tax purposes. Your Social Security statement (Form SSA-1099) shows the gross amount you received.

How moving affects your Social Security tax liability

Your state of residence on December 31 of the tax year determines which state's rules explore. If you move on January 1, the new state's rules explore for the entire year. If you move on December 31, the old state's rules explore for the entire year.

Establishing residency in a new state requires more than just moving there. Most states require you to obtain a driver's license, register to vote, or own property in the state. If you move mid-year and the IRS or your old state questions your residency, you may need to prove you intended to stay in the new state permanently.

If you own property in multiple states or split time between them, the state where you spend the most time or maintain your primary home is usually your state of residence. Some states use the "domicile" test, which looks at where you intend to live permanently, not where you currently live. Consult a tax professional if your situation is unclear.

Filing taxes when you live in a state that taxes Social Security

If your state taxes Social Security and your income exceeds the threshold, you will report your Social Security income on your state tax return. Most states use a worksheet similar to the federal worksheet on Form 1040 instructions. The worksheet combines your Social Security with other income to determine how much is taxable.

Some states allow a partial exemption or credit for residents over a certain age. Colorado, Montana, and Utah offer tax credits for seniors that may reduce or eliminate your tax on Social Security. Check your state's senior tax relief programs if you are 65 or older.

If you owe state tax on Social Security, you can request that your state withhold taxes from your benefit check, similar to federal withholding. Contact your state's revenue department or your local Social Security office for the form to set up withholding.

Frequently Asked Questions

Can I move to a no-tax state to avoid paying taxes on Social Security?

Yes, but only if you establish genuine residency before the tax year ends. Moving on December 31 counts as establishing residency for the entire year. However, if you own a home in your old state, work there, or maintain other ties, the IRS may challenge your claim of residency in the new state. Moving solely to avoid taxes is legal, but you must actually live in the new state.

Does my spouse's Social Security count toward the income threshold?

Yes. If you file jointly, both your Social Security and your spouse's Social Security are combined to determine whether you exceed the threshold. If you file separately, each person's income is calculated individually, though filing separately often results in more tax owed overall.

What if I move to a state that taxes Social Security after I already retired there?

If a state changes its law to tax Social Security after you have been living there, you are subject to the new law. However, some states grandfather in residents who were already retired when the law changed. Check your state's revenue department for grandfather provisions if this applies to you.

Is my Social Security taxable if I also receive a pension?

Yes. Your pension and Social Security are added together to determine whether you exceed your state's income threshold. Some states offer separate exemptions for pensions, but Social Security is calculated separately. Your state's tax form will show how to combine these income sources.

Do I have to file a state tax return if I only receive Social Security?

In most states that tax Social Security, you do not have to file if your only income is Social Security below the threshold. However, if you have other income (wages, interest, dividends, pensions), you may be required to file even if your Social Security is exempt. Check your state's filing requirements based on your total income.