Thirteen states tax part or all of your Social Security income
Most states do not tax Social Security benefits, but thirteen do. Those states are Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Illinois taxes benefits only for people over 61 who do not meet income thresholds. The rules vary widely—some states tax only high earners, others tax everyone, and some allow deductions or exemptions that federal tax does not.
Whether you owe state tax on your benefits depends on your total income, your filing status, and which state you live in. A person with modest Social Security income might owe nothing in one state and face a tax bill in another. If you live in a state that taxes benefits, you may need to file a state return even if you do not owe federal tax.
Key Takeaways
- Thirteen states tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, West Virginia, and Illinois (with age and income limits).
- Most states that tax benefits use a threshold based on your total income—if you earn above that threshold, some or all of your benefits become taxable.
- The amount of tax you owe depends on your filing status, other income sources, and whether your state offers exemptions or deductions for retirees.
- If you live in a state that taxes benefits, you should contact that state's tax department or a tax professional to understand your specific situation.
How states calculate taxable Social Security income
States that tax benefits usually start with your federal taxable Social Security income—the amount you report on your federal return. However, some states use their own rules and thresholds. Colorado, for example, exempts the first $24,000 of combined income for single filers and $32,000 for married couples filing jointly, meaning only income above those amounts is taxed. Connecticut taxes benefits for single filers with combined income over $75,000 and married couples over $100,000.
Combined income typically means your adjusted gross income plus non-taxable interest plus half your Social Security benefits. This is the same calculation the federal government uses, but states may explore it differently. Some states tax benefits at their full state income tax rate; others use a lower rate or tax only a portion of the benefits.
A few states—Montana and Nebraska, for instance—conform to federal taxation rules, meaning if your benefits are taxable under federal law, they are taxable under state law too. Others, like Kansas, do not tax Social Security at all for most residents but may have different rules for certain income levels or filing statuses.
State-by-state breakdown of tax rules
| State | Tax Status | Key Details |
|---|---|---|
| Colorado | Taxes benefits | Exempts first $24,000 (single) or $32,000 (married) of combined income; taxes remainder at state rate. |
| Connecticut | Taxes benefits | Taxes for single filers with combined income over $75,000; married couples over $100,000. |
| Illinois | Taxes benefits with limits | Taxes benefits only for residents under 61; residents 61 and older are exempt. |
| Kansas | Taxes benefits | Taxes all Social Security benefits as income; no exemptions based on age or income level. |
| Minnesota | Taxes benefits | Taxes benefits for single filers with combined income over $92,640; married couples over $115,800 (2024 thresholds). |
| Missouri | Taxes benefits | Taxes benefits for single filers with federal adjusted gross income over $25,000; married couples over $32,000. |
| Montana | Taxes benefits | Conforms to federal rules; if taxable federally, taxable in Montana. |
| Nebraska | Taxes benefits | Conforms to federal rules; if taxable federally, taxable in Nebraska. |
| New Mexico | Taxes benefits | Exempts all Social Security for residents 55 and older; taxes for younger recipients. |
| Rhode Island | Taxes benefits | Taxes benefits for single filers with combined income over $50,000; married couples over $75,000. |
| Utah | Taxes benefits | Taxes benefits as income; offers a tax credit for low-income retirees. |
| Vermont | Taxes benefits | Taxes benefits for single filers with combined income over $75,000; married couples over $100,000. |
| West Virginia | Taxes benefits | Taxes benefits; offers exemptions for residents 65 and older with income below certain thresholds. |
These thresholds and rules change periodically, and some states adjust them annually for inflation. The table above reflects general rules as of 2024, but you should verify current rules with your state's tax department before filing.
Age-based exemptions and deductions
Several states offer breaks for older residents. New Mexico exempts all Social Security benefits for residents 55 and older, making it one of the most retiree-friendly states. Illinois exempts residents 61 and older entirely. West Virginia offers exemptions for residents 65 and older whose income falls below specified thresholds.
Other states offer deductions rather than exemptions. Utah allows a tax credit for low-income retirees, and some states let you deduct a portion of your benefits or claim a retirement income credit. These credits and deductions vary in how much they reduce your tax bill, so the actual amount you owe depends on your total income and filing status.
What to do if you live in a state that taxes benefits
If you live in one of the thirteen states listed above, you should contact that state's tax department to understand your specific situation. Most state tax departments have websites with worksheets or calculators that show whether your benefits are taxable. You can also reach out to a tax professional who knows your state's rules.
You may need to file a state income tax return even if you do not owe federal tax. Some states require a return if your income exceeds a certain threshold, regardless of whether you actually owe tax. Filing early—before the state's important date—ensures you pay any tax owed on time and avoid penalties.
If you receive benefits and move to a different state, your tax situation may change. A state that taxes benefits might exempt you if you meet an age requirement, or vice versa. Keep track of your state residency and update your tax filing accordingly.
How federal taxation of benefits works
The federal government taxes Social Security benefits for people whose combined income exceeds certain thresholds: $25,000 for single filers and $32,000 for married couples filing jointly. If your combined income is below those thresholds, your benefits are not taxable federally. Above those thresholds, up to 85 percent of your benefits may be taxable, depending on how far your income exceeds the limit.
States that conform to federal rules—like Montana and Nebraska—use this same calculation. States with their own rules may tax benefits even if they are not taxable federally, or may exempt them even if the federal government taxes them. This is why your state tax situation can differ significantly from your federal situation.
Planning ahead if you are not yet retired
If you are still working and live in a state that taxes benefits, you may want to understand how your retirement income will be taxed. The amount of Social Security you receive depends on your earnings record and the age at which you claim. Claiming earlier means a smaller monthly benefit but potentially lower total income in early retirement; claiming later means a larger benefit.
Other income sources—pensions, investment income, part-time work—also affect whether your benefits are taxable. Some people reduce their tax burden by managing when they withdraw from retirement accounts or how they structure their income. A tax professional familiar with your state's rules can help you think through these decisions before you retire.
Frequently Asked Questions
Do I have to pay federal tax on my Social Security benefits?
Only if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly). Combined income includes your adjusted gross income, non-taxable interest, and half your Social Security benefits. If you are below those thresholds, your benefits are not taxable federally.
Can I move to a state that does not tax benefits to avoid state tax?
Yes, but you must establish residency in that state. You cannot claim residency in a state where you do not actually live. If you move, update your address with Social Security, your bank, and your state tax department to may support your tax filing reflects your actual state of residence.
What if I receive both Social Security and a pension?
Both count toward your combined income for tax purposes. If your combined income is high enough, both your benefits and your pension may be taxable. The exact amount depends on your state's rules and your filing status.
Do I need to file a state return if I do not owe state tax?
It depends on your state's rules. Some states require a return if your income exceeds a threshold, even if you do not owe tax. Check with your state's tax department or a tax professional to know whether you must file.
How do I find out my state's current tax rules for Social Security?
Contact your state's tax department directly—they have websites with current rules, thresholds, and worksheets. You can also speak with a tax professional licensed in your state who can explain how the rules explore to your specific situation.