No state taxes Social Security benefits, but your federal tax bill might still include them
The short answer: no state in the United States taxes Social Security retirement, survivor, or disability benefits. Federal law prohibits states from taxing these payments. However, the federal government does tax Social Security for some people, depending on your total income. Your state won't take a cut, but you may owe federal income tax on part of your benefits.
This protection applies equally in every state—whether you live in California, Florida, New York, or anywhere else. The ban has been in place since 1983 and applies to all three types of Social Security payments: retirement benefits, survivor benefits paid to family members, and Social Security Disability Insurance (SSDI).
Key Takeaways
- All 50 states are prohibited by federal law from taxing any form of Social Security benefits.
- The federal government taxes Social Security for individuals whose combined income exceeds certain thresholds, regardless of which state they live in.
- Combined income includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits—not just the benefits themselves.
- Thirteen states tax some retirement income, but none of them can tax Social Security specifically.
How the federal tax on Social Security actually works
Even though your state won't tax Social Security, the IRS may. Whether you owe federal tax on your benefits depends on your combined income, which is calculated as your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.
If you file as single and your combined income is between $25,000 and $34,000, you may owe tax on up to 50 percent of your benefits. If your combined income exceeds $34,000, you may owe tax on up to 85 percent of your benefits. For married couples filing jointly, the thresholds are $32,000 and $44,000. These thresholds have not changed since 1983.
The tax is calculated on your federal return using IRS worksheets or tax software. You do not pay it separately—it is part of your regular income tax bill. Many people find that they owe little or nothing because the thresholds are relatively high and have not been adjusted for inflation.
Which states tax retirement income (but not Social Security)
Thirteen states tax some forms of retirement income: Colorado, Connecticut, Delaware, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, none of these states can tax Social Security, even though they tax pensions, 401(k) withdrawals, or other retirement sources.
If you receive both Social Security and a pension, your state may tax the pension but will leave the Social Security untouched. Some of these states offer exemptions or deductions for retirement income above a certain age or income level, but Social Security is always excluded.
If you are considering moving to reduce your tax burden, Social Security is not a factor in that decision. Your state tax liability will depend on pensions, investment income, and other sources—not on your Social Security check.
Why Social Security is protected from state taxation
The ban on state taxation of Social Security came from the Social Security Amendments of 1983. Congress decided that Social Security benefits, which are already subject to federal tax for higher-income recipients, should not face an additional layer of state taxation. The law treats Social Security as a federal program and reserves taxation authority to the federal government.
This protection applies regardless of whether you worked in the state where you now live or retired to a different state. You could have paid taxes in New York your entire career and now live in Florida—your Social Security benefits remain untaxed by both states.
How to report Social Security on your federal tax return
If you receive Social Security, you will receive a Form SSA-1099 from the Social Security Administration by January 31 each year. This form shows the total benefits you received in the previous year. You report this amount on your federal tax return, even if you do not owe tax on it.
Most tax software and tax preparers will ask you to enter your Social Security income and will automatically calculate whether any of it is taxable based on your combined income. If you prepare your return by hand, the IRS provides a worksheet in the instructions for Form 1040 to determine the taxable portion.
You do not need to file a state tax return for Social Security income alone. If you have other income that requires a state return in your state, you will file that separately, but Social Security will not be included in the state calculation.
What counts toward your combined income threshold
Understanding what counts toward the combined income calculation helps you predict whether your Social Security will be taxed. The calculation includes wages, self-employment income, interest, dividends, capital gains, and distributions from retirement accounts. It also includes half of your Social Security benefits themselves.
Some income does not count: Supplemental Security Income (SSI) is excluded, as are certain tax-exempt bond interest and foreign earned income. If you are unsure whether a specific income source counts, the IRS worksheet on Form 1040 instructions will clarify.
For example, if you are single with $20,000 in pension income and $18,000 in Social Security, your combined income is $20,000 + $18,000 + (half of $18,000) = $29,000. This puts you in the range where some of your Social Security may be taxable.
Planning ahead if you expect to owe federal tax on Social Security
If you know your combined income will be high enough to trigger taxation of your Social Security, you have a few options. You can request that the Social Security Administration withhold federal income tax from your monthly benefit check. You do so by completing Form W-4V and submitting it to your local Social Security office or online through your my Social Security account.
Alternatively, you can make quarterly estimated tax payments to the IRS if you prefer to handle the tax separately. Some people choose to do neither and straightforward pay the tax when they file their return. There is no penalty for owing tax on Social Security as long as you pay it by the tax important date or have enough withheld.
If your income varies year to year—for example, if you have investment income that fluctuates—your tax liability on Social Security may also vary. Reviewing your situation each year and adjusting withholding or estimated payments can help you avoid surprises at tax time.
Frequently Asked Questions
Can I move to a state that does not tax Social Security to avoid federal tax?
No. Federal tax on Social Security applies everywhere in the United States, regardless of which state you live in. Moving states will not change your federal tax liability. However, if you currently live in one of the 13 states that tax retirement income, moving to a state with no retirement income tax could reduce your overall tax burden on pensions or other sources.
Do I have to file a state tax return if I only have Social Security income?
Most states do not require you to file a state return if Social Security is your only income. However, if you have other income—wages, a pension, investment income—you may need to file even though Social Security itself is not taxed. Check your state's rules or contact your state tax authority to be sure.
What if I worked for a railroad or the federal government?
Railroad Retirement benefits and federal employee pensions are taxed differently than Social Security, and some states do tax them. Social Security itself remains untaxed by all states. If you receive both Social Security and a pension from railroad or federal service, your state may tax the pension but not the Social Security portion.
Will the thresholds for federal taxation of Social Security ever change?
The income thresholds ($25,000 and $34,000 for single filers) have remained the same since 1983 and would require an act of Congress to change. There is no automatic adjustment for inflation. This means that over time, more people may find their Social Security taxable as their other income grows, even if their actual purchasing power has not increased.
Do I need to pay state tax if I moved to a new state mid-year?
Your state tax filing requirements depend on where you lived and your income in that state, not on Social Security. Social Security is never part of the calculation. If you moved states, you may need to file part-year returns in both states depending on your other income, but Social Security will not trigger a filing requirement in either state.