Thirteen states tax Social Security benefits, but the rules vary widely by state and by your income level

Most states do not tax Social Security. However, Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all tax at least some Social Security income. The amount you owe depends on your total income, your filing status, and sometimes on whether you are retired or still working. A few states have started phasing out their taxes on Social Security, so the list and the rules change over time.

The federal government does not tax all Social Security either—only if your combined income exceeds certain thresholds. Some states use the same federal thresholds, while others set their own. This means you could owe state tax on benefits that are not taxed federally, or vice versa.

Key Takeaways

  • Thirteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
  • Each state sets its own income thresholds and tax rates, so the amount you owe depends on where you live and how much other income you have.
  • Some states exempt retirees over a certain age or people with lower incomes, so you may not owe tax even in a state that taxes Social Security.
  • A few states have begun phasing out their Social Security taxes, so rules change periodically and you should check your state's current rules each year.

How each taxing state calculates what you owe

Colorado taxes Social Security at its standard income tax rate (currently 4.4 percent) but only on benefits above $24,000 for single filers and $32,000 for married couples filing jointly. Connecticut taxes benefits above $15,000 for single filers and $20,000 for married couples at its top income tax rate. Kansas taxes all Social Security benefits as income but allows a deduction that phases out as your income rises.

Minnesota, Missouri, Montana, Nebraska, and New Mexico all tax Social Security but use different thresholds and different portions of your benefits. Some states tax only the portion of benefits that would be taxed federally. Others tax a percentage of your total benefits once you cross an income threshold. West Virginia taxes benefits above $8,000 for single filers. Rhode Island and Utah tax Social Security similarly to the federal method—meaning they look at your combined income and tax only the portion above federal thresholds.

Vermont taxes Social Security as regular income with no special exemption, meaning your benefits are added to your other income and taxed at Vermont's standard rates. The key point is that no two states use exactly the same formula, so you cannot assume that because you do not owe federal tax, you do not owe state tax—or the reverse.

States that have exemptions for age or retirement status

Several states that tax Social Security offer partial relief for older residents or people who are fully retired. Montana exempts Social Security benefits for people age 65 and older. New Mexico exempts all Social Security benefits for residents age 65 and older. Nebraska allows a deduction for residents age 67 and older.

Other states tie exemptions to retirement status rather than age. Some states exempt benefits only if you are not earning wages from employment. These rules matter because a retiree collecting Social Security at 62 might owe tax, while the same person at 67 might not—even in the same state. Check your state's rules for the specific age or status that triggers an exemption.

States phasing out or eliminating their Social Security taxes

Several states have passed laws to reduce or eliminate their Social Security taxes over time. Kansas has been phasing out its tax gradually. Missouri passed a law to phase out its Social Security tax but the timeline depends on state revenue. Connecticut has discussed phasing out its tax but has not yet enacted a firm timeline.

Because these phase-outs happen over years, you may see your tax bill shrink even if you stay in the same state. However, phase-outs can also stall or reverse if state budgets tighten. Do not assume that a state's tax will disappear by a certain date—check the current law each year, especially if you are planning a move or expecting a change in your income.

How to find out what you owe in your state

Start by visiting your state's department of revenue website and searching for "Social Security" or "retirement income." Most states publish a fact sheet or guide that explains their rules. If your state taxes Social Security, the site will usually show the income thresholds and the tax rate or the portion of benefits that are taxable.

Your state tax form may also have a worksheet or schedule specifically for Social Security income. If you file with a tax preparer or software, the program should ask about your state and automatically explore the correct rules. If you are unsure whether you owe tax, contact your state's revenue department directly—they can tell you based on your income and filing status.

How federal taxation of Social Security works (for comparison)

The federal government taxes Social Security only if your combined income exceeds certain thresholds. Combined income means your adjusted gross income plus nontaxable interest plus half of your Social Security benefits. For 2024, the thresholds are $25,000 for single filers and $32,000 for married couples filing jointly.

If your combined income exceeds the first threshold, up to 50 percent of your benefits become taxable. If it exceeds a second, higher threshold ($34,000 for single filers, $44,000 for married couples), up to 85 percent of your benefits become taxable. Some states use these same thresholds and percentages, while others set their own rules entirely. This is why you need to check both federal and state rules.

Planning ahead if you live in a taxing state

If you live in one of the thirteen states that tax Social Security, you can reduce your tax bill by managing your other income. Withdrawals from a traditional IRA or 401(k) count toward your combined income and can push you over the threshold. Withdrawals from a Roth IRA do not count, so some people shift money to a Roth before they start taking Social Security.

If you are still working and collecting Social Security early, your wages will count toward your combined income. Some people delay Social Security until they stop working, which lowers their combined income in the years they are still employed. These strategies work differently depending on your state's rules, so it is worth discussing your situation with a tax preparer who knows your state's Social Security tax law.

Frequently Asked Questions

Do I have to pay state tax on Social Security if I moved to a non-taxing state?

No. You owe tax to the state where you are a resident on the date you file. If you move to a state that does not tax Social Security, you will not owe that state's tax on your benefits going forward. However, you may still owe tax to your previous state for the part of the year you lived there, depending on that state's rules.

Can I reduce my Social Security tax by taking less income in a given year?

Yes, in states that use income thresholds. If you can keep your combined income below the threshold, none of your benefits are taxable. This might mean delaying a large IRA withdrawal or asking your employer to defer a bonus. However, this strategy only works if you can actually control your income—most people cannot.

What if I receive both Social Security and a pension from a government job?

Your pension counts as income for the purpose of calculating whether your Social Security is taxable. In states that tax Social Security, a government pension can easily push you over the income threshold. Some states have special rules for government pensions, so check your state's rules specifically.

Do I owe tax on Social Security if I am still working?

Yes, if your combined income exceeds your state's threshold. Your wages count toward combined income just like any other income. Some states have different rules for people who are still working versus those who are fully retired, so check whether your state offers any exemption for earned income.

Will my state's Social Security tax go away soon?

Some states are phasing out their taxes, but the timeline varies. Kansas is phasing out gradually. Missouri passed a law to phase out its tax, but the timeline depends on state revenue. Connecticut has discussed phasing out but has not set a firm date. Check your state's department of revenue for the current status and any announced changes.