Thirteen states tax Social Security benefits, but most of the country does not
Thirty-seven states do not tax Social Security at all. Thirteen states do tax some or all of your benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, even in these states, you may not owe tax on your benefits—most have income thresholds or exemptions that protect lower-income retirees.
The amount of your benefit that gets taxed depends on your total income in that year, not just the Social Security payment itself. This matters because the federal government uses the same rule, and some states follow the federal calculation while others use their own. Understanding which state you live in and how much total income you have is the first step to knowing whether you will owe state tax on your benefits.
Key Takeaways
- Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
- Even in states that tax benefits, most retirees with lower incomes are exempt because each state sets an income threshold below which no tax is owed.
- Your total income—including wages, pensions, interest, and half your Social Security—determines whether you owe tax, not the Social Security amount alone.
- If you moved to a non-taxing state after receiving benefits in a taxing state, you may still owe tax to your former state for the years you lived there.
How the thirteen taxing states calculate what you owe
Each of the thirteen states that tax Social Security uses a different threshold and method. Most follow the federal rule: they add half your Social Security benefit to your other income (wages, pensions, interest, rental income) to get what the IRS calls "combined income." If that combined income exceeds the state's threshold, a portion of your benefit becomes taxable.
Colorado, Connecticut, Kansas, and Missouri use the federal calculation and follow federal tax brackets, which means if you do not owe federal tax on your benefits, you typically will not owe state tax either. Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia use their own thresholds and may tax you even if the federal government does not. Minnesota and Montana have their own rules as well.
The income thresholds vary widely. For example, Connecticut exempts single filers with combined income under $75,000 and married filers under $100,000. Kansas exempts all Social Security for those 55 and older. New Mexico exempts all benefits for residents 55 and older. If you are in one of these states, check the specific threshold for your filing status and age before assuming you owe tax.
State-by-state thresholds and exemptions
| State | Taxing Status | Key Threshold or Exemption |
|---|---|---|
| Colorado | Taxes benefits | Follows federal calculation; exempts those 55 and older with income under $24,000 (single) or $32,000 (married) |
| Connecticut | Taxes benefits | Exempts combined income under $75,000 (single) or $100,000 (married) |
| Kansas | Taxes benefits | Exempts all benefits for those 55 and older |
| Minnesota | Taxes benefits | Exempts combined income under $32,640 (single) or $40,800 (married) for 2024 |
| Missouri | Taxes benefits | Exempts all benefits for those 59 and older |
| Montana | Taxes benefits | Exempts combined income under $25,000 (single) or $32,000 (married) |
| Nebraska | Taxes benefits | Exempts combined income under $32,640 (single) or $40,800 (married) for 2024 |
| New Mexico | Taxes benefits | Exempts all benefits for those 55 and older |
| Rhode Island | Taxes benefits | Exempts combined income under $25,000 (single) or $32,000 (married) |
| Utah | Taxes benefits | Exempts combined income under $25,000 (single) or $32,000 (married) |
| Vermont | Taxes benefits | Follows federal calculation; exempts those 62 and older with income under $32,000 (single) or $40,000 (married) |
| West Virginia | Taxes benefits | Exempts combined income under $25,000 (single) or $32,000 (married) |
| All other states | Do not tax | No state tax on Social Security |
These thresholds and exemptions change periodically, and some states adjust them for inflation each year. The amounts shown here reflect recent rules, but you should verify the current threshold for your state and filing status before filing your state return. Your state's tax department website or a tax professional can confirm the exact rule for your situation.
What counts as income when calculating whether you owe tax
States that tax Social Security use combined income to decide whether you cross the threshold. Combined income includes your adjusted gross income (wages, self-employment income, taxable pensions, taxable interest, capital gains, and other income reported on your federal return) plus half of your Social Security benefit. It does not include non-taxable interest (such as from municipal bonds) or non-taxable portions of pensions.
This is important because you can have a large Social Security benefit but still fall below the threshold if your other income is low. For example, if you are single in Utah with $20,000 in Social Security and $3,000 in pension income, your combined income is $13,000 (3,000 + half of 20,000), which is below Utah's $25,000 threshold. You would owe no state tax on your benefits.
Conversely, if you have a small Social Security benefit but significant other income—such as from a part-time job or investment gains—you may cross the threshold even with a modest benefit. The state looks at the total picture, not the benefit in isolation.
What to do if you moved between states
If you moved from a state that taxes Social Security to one that does not, you may still owe tax to your former state for the years you lived there. States generally tax residents on income earned or received while they lived in that state, regardless of where they live now. You would file a part-year resident return for your former state for the year you moved.
If you moved from a non-taxing state to a taxing state, you will begin owing state tax on your benefits starting the year you become a resident of the new state. Some states have reciprocal agreements or special rules for recent movers, so check with your new state's tax department about whether any exemptions explore to you during your first year.
Keep documentation of when you moved—a lease, utility bill, or driver's license renewal—because states may ask for proof of residency if you file a return showing a move between states.
How to report Social Security on your state return
If you live in a state that taxes benefits and your income exceeds the threshold, you will report your Social Security on your state income tax return. Most states that tax benefits require you to report the same amount that appears on your federal return (Form 1040, line 5b). Some states have a separate worksheet or schedule to calculate the taxable portion.
Your state tax software or form instructions will show you where to enter the amount. If you use a tax professional, they will handle this calculation for you. The key is to have your Social Security statement (Form SSA-1099) and your other income documents ready when you file.
If you live in a state that does not tax Social Security, you do not report it on your state return at all, even though you report it on your federal return. This is one of the few items that appears on your federal return but not your state return.
Frequently Asked Questions
Do I have to pay federal tax on my Social Security?
The federal government taxes Social Security using the same combined income rule as the states. If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), up to 85 percent of your benefit may be taxable federally. This is separate from state tax and applies regardless of which state you live in.
If I am below the threshold, do I still have to file a state return?
That depends on your total income and your state's filing requirements. You may be required to file based on other income even if your Social Security is not taxable. Check your state's tax department website for the filing threshold for your age and filing status.
Can I reduce my state tax by moving to a non-taxing state?
Yes, but you must actually move and establish residency. You cannot claim residency in a state just to avoid taxes. You will need to change your driver's license, register to vote, and show other signs of permanent residence. Your former state may challenge a move that looks designed only to avoid taxes.
What if I receive Social Security from working in one state but now live in another?
The state where you currently live determines whether your benefits are taxed. Your former state does not tax benefits you receive after you move away. However, you may owe tax to your former state for benefits you received while you lived there.
Are there any deductions or credits that reduce Social Security tax?
Most states that tax Social Security do not offer special deductions or credits for the benefit itself. However, you may be able to claim other deductions or credits on your state return that lower your overall tax. A tax professional or your state's tax department can tell you what is available in your situation.