Most states do not tax Social Security, but 13 do — and the rules differ by state

Whether you pay state income tax on Social Security depends entirely on where you live. Thirty-seven states and the District of Columbia do not tax Social Security benefits at all. Thirteen states tax some or all of your benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Each of these states uses its own formula to decide how much of your benefit counts as taxable income.

The federal government taxes Social Security under rules set by Congress, but states set their own rules separately. A benefit that is fully taxable under federal law might be partially taxed, fully taxed, or not taxed at all depending on your state. If you moved to a new state after you started receiving benefits, your tax situation can change.

Your state of residence is what matters, not where you worked or where you paid into Social Security. If you live in a state that does not tax Social Security, you owe no state tax on those benefits even if you worked in a state that does.

Key Takeaways

  • Thirteen states tax Social Security benefits in some form: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
  • Each state that taxes Social Security uses different income thresholds and formulas, so the amount you owe varies by state and by your total income.
  • Your state of residence determines whether your benefits are taxed, not the state where you worked or paid into Social Security.
  • Moving to a non-taxing state after you start receiving benefits can reduce or eliminate your state tax on Social Security.

How each state calculates Social Security taxation

States that tax Social Security do not all use the same method. Some states follow the federal formula closely, while others have created their own thresholds and percentages. Understanding your state's specific rules requires looking at how it treats your "combined income" — usually your adjusted gross income plus tax-exempt interest plus half of your Social Security benefit.

Colorado taxes up to 85 percent of benefits for higher-income filers, using combined income thresholds of $25,000 for single filers and $32,000 for married couples filing jointly. Connecticut taxes benefits for filers with combined income over $50,000 (single) or $60,000 (married filing jointly), but only if your federal taxable income exceeds certain amounts. Kansas taxes all Social Security benefits as income with no special exemption, though some filers may may have access to for a pension exemption that reduces the amount subject to tax.

Minnesota, Missouri, and Montana each have their own combined income thresholds and percentage-based formulas. Nebraska taxes benefits based on federal taxable income, not combined income. New Mexico exempts benefits entirely for most retirees but may tax them for higher-income filers. Rhode Island taxes benefits similarly to the federal formula. Utah taxes all benefits as income. Vermont and West Virginia also tax benefits but with different thresholds and methods.

Because these formulas change and vary significantly, your actual tax bill depends on your specific state, your filing status, and your total income from all sources. The IRS and your state tax authority both publish worksheets to calculate how much of your benefit is taxable in your state.

Combined income thresholds and what they mean

Most states that tax Social Security use a combined income threshold to decide whether any of your benefits are taxable. Combined income is not the same as your adjusted gross income. It typically includes your adjusted gross income, any tax-exempt interest you earned, and half of your Social Security benefit.

If your combined income falls below your state's threshold, you owe no state tax on your benefits. If it exceeds the threshold, some or all of your benefits become taxable income. The amount that becomes taxable depends on how far your combined income exceeds the threshold and what percentage your state applies.

For example, if your state's threshold is $25,000 for single filers and your combined income is $30,000, you have $5,000 above the threshold. Your state then applies its formula to determine what portion of that $5,000 — or of your total benefit — becomes taxable. Some states tax up to 50 percent of the excess; others tax up to 85 percent.

Your combined income can change year to year based on wages, investment income, pension payments, and other sources. A year when you have capital gains or withdraw money from a retirement account could push you over your state's threshold even if your Social Security benefit stays the same.

States that do not tax Social Security at all

If you live in Alaska, Alabama, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, or Wyoming, your state does not tax Social Security benefits. The District of Columbia also does not tax Social Security.

In these states, your Social Security benefit is not subject to state income tax regardless of how much you earn from other sources. You may still owe federal income tax on your benefits if your combined income exceeds the federal thresholds, but your state will not take a portion of your benefit.

Some of these states have no state income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming). Others have state income tax but have chosen not to tax Social Security specifically. If you are considering moving in retirement, the state tax treatment of Social Security is one factor that can affect your after-tax income.

How moving to a different state affects your taxes

If you move from a state that taxes Social Security to one that does not, your state tax on benefits stops in the year you establish residency in the new state. You will owe tax to your old state only for the portion of the year you lived there, based on that state's rules. Your new state will not tax your benefits going forward.

The reverse is also true: if you move from a non-taxing state to one that does tax Social Security, you will begin owing state tax on your benefits in the year you move, calculated according to your new state's formula. Some states allow you to claim residency based on where you spend the most days, while others use different tests. Check with your new state's tax authority about when residency takes effect for tax purposes.

Your Social Security benefit amount does not change when you move. What changes is whether your state takes a portion of it. If you are already receiving benefits and move mid-year, you may need to file tax returns in both states for that year. Your new state's tax authority can tell you whether you owe tax for the partial year you lived there.

Federal taxation of Social Security versus state taxation

Federal and state taxation of Social Security are separate systems. You may owe federal tax on your benefits, state tax, both, or neither — it depends on your income level and where you live. The federal government taxes up to 85 percent of your benefits if your combined income exceeds certain thresholds ($25,000 for single filers, $32,000 for married couples filing jointly). Many people who owe federal tax on Social Security owe nothing to their state, and vice versa.

Your federal tax return and your state tax return each use their own combined income calculation and their own thresholds. A benefit that is fully taxable under federal rules might be partially taxed or not taxed at all by your state. You calculate federal and state tax separately using the worksheets provided by the IRS and your state tax authority.

When you file your federal return, you report your Social Security benefit on line 5b of Form 1040. Your state return has its own line for Social Security income, and you calculate state taxable income using your state's rules. Some tax software handles both calculations automatically if you enter your information correctly.

What to do if you live in a state that taxes Social Security

If your state taxes Social Security, you need to know your state's specific thresholds, formulas, and filing requirements. Start by visiting your state tax authority's website — search for "[your state] taxes Social Security" to find the official guidance. Your state will provide worksheets or instructions that walk you through calculating how much of your benefit is taxable.

You will need to gather your Social Security statement (Form SSA-1099), your other income documents, and any tax-exempt interest you earned. Then use your state's worksheet to calculate your combined income and determine the taxable portion of your benefit. If you use tax software, enter your information carefully so the software applies your state's rules correctly.

If you have questions about your state's calculation, contact your state tax authority directly. Many states have telephone lines or online chat support for tax questions. You can also work with a tax professional who is familiar with your state's Social Security taxation rules.

Frequently Asked Questions

Do I have to pay federal tax and state tax on the same Social Security benefit?

Not necessarily. You may owe federal tax on your benefits but no state tax, or state tax but no federal tax, depending on your income and where you live. Each government uses different income thresholds and formulas. Calculate both separately using the worksheets provided by the IRS and your state tax authority.

If I move to a state that does not tax Social Security, when does my state tax stop?

Your state tax on Social Security stops in the year you establish residency in the new state. You will owe tax to your old state only for the months you lived there. Contact your new state's tax authority to confirm when residency takes effect for tax purposes, as the rules vary by state.

What is combined income and why does it matter?

Combined income is your adjusted gross income plus tax-exempt interest plus half of your Social Security benefit. States use combined income to determine whether any of your benefits are taxable and how much. If your combined income exceeds your state's threshold, some or all of your benefits become taxable income.

Can I reduce the amount of Social Security tax I owe by moving?

Yes. If you move to a state that does not tax Social Security, you will owe no state tax on your benefits going forward. However, moving involves many other costs and considerations. Consult with a tax professional or financial advisor about whether a move makes sense for your overall situation.

Where do I find my state's Social Security tax rules?

Visit your state tax authority's website and search for information about Social Security taxation. Most states provide worksheets, instructions, and contact information for tax questions. You can also call your state's tax helpline or use their online chat support to ask about your specific situation.