Thirteen states tax Social Security benefits, but most do not

Most states do not tax Social Security income. However, thirteen states — Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia — do tax at least some Social Security benefits. The rules vary widely by state: some tax only high earners, some tax only certain types of benefits, and some have already phased out their taxes or plan to. If you live in one of these states, you may owe state income tax on your benefits even though the federal government does not tax them for most people.

Whether you actually owe tax in one of these thirteen states depends on your total income, your age, and the specific rules where you live. Many people in these states still pay no state tax on Social Security because they fall below the income threshold or may have access to for an exemption. The key is understanding how your state calculates the tax and whether you meet the conditions that trigger it.

Key Takeaways

  • Thirteen states currently tax Social Security benefits, though the rules and income thresholds differ in each state.
  • Your state's tax on Social Security depends on your total income, not just your benefits — the calculation includes wages, pensions, and other sources.
  • Some states have already begun phasing out their Social Security taxes or have exemptions for people over a certain age.
  • You may need to file a state tax return even if you would not owe federal tax, because state rules are separate.
  • Your tax software or state tax authority can tell you whether you owe state tax on your benefits in your specific situation.

How states calculate tax on Social Security

States that tax Social Security use different formulas, but most start with your combined income. Combined income is not just your benefits — it includes wages, pensions, interest, dividends, and other income sources. A state then applies a threshold: if your combined income exceeds that threshold, a portion of your benefits becomes taxable.

For example, Connecticut taxes benefits only if your combined income exceeds $75,000 (single) or $100,000 (married filing jointly). If you are over that threshold, up to 75 percent of your benefits may be taxable. Kansas, by contrast, taxes benefits the same way the federal government does — using a formula based on how much your income exceeds $25,000 (single) or $32,000 (married). The result is that two people with identical benefits can owe very different state taxes depending on where they live and what other income they have.

The thirteen states that currently tax Social Security

Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all tax Social Security benefits under their state income tax systems. However, several of these states have begun phasing out the tax or have exemptions that reduce or eliminate it for many people.

Colorado and Nebraska have already passed laws to phase out their taxes on Social Security, though the phase-out takes place over several years. Connecticut exempts people over age 60. Kansas exempts military pensions and certain federal pensions from the same tax calculation that applies to Social Security. Minnesota taxes benefits but allows a credit that reduces the tax for many filers. Missouri exempts people over age 59. New Mexico exempts people over age 100 and those with federal military retirement income. These exemptions and phase-outs mean that even within a state that "taxes" Social Security, you may not owe tax depending on your age and income.

States with no tax on Social Security

Thirty-seven states do not tax Social Security benefits at all. These include large states like California, Florida, Illinois, New York, Pennsylvania, and Texas. If you live in any state not listed above, your Social Security benefits are not subject to state income tax, though you may still owe state tax on other income like wages or pensions.

Some states with no income tax at all — such as Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming — do not tax Social Security straightforward because they do not have a state income tax. Others, like Illinois and Pennsylvania, have chosen to exempt Social Security specifically while taxing other income. The result is the same: no state tax on your benefits.

How to find out what you owe in your state

Start with your state's tax authority website. Most state revenue or taxation departments publish a guide to how Social Security is taxed in that state, along with worksheets to calculate your tax. The names vary — look for "Department of Revenue," "Department of Taxation," or "State Tax Commission" followed by your state name.

If you use tax preparation software, the software will ask about your Social Security income and your state of residence, then calculate your state tax automatically. If you file with a tax preparer, bring your Social Security statement (Form SSA-1099) and tell them your state. They will know the rules for your state and can tell you whether you owe tax. If you live in a state that taxes Social Security but your income is below the threshold, you may not owe tax even though the state has a tax on benefits — the threshold is what matters.

What happens if you move to a different state

If you move from a state that taxes Social Security to one that does not, your state tax situation changes when ready. You owe tax to your new state of residence based on the rules there. If you move mid-year, you may need to file a part-year return in both states, or you may owe tax to one state and not the other depending on when you moved and how much income you had in each state during the year.

The same applies if you move from a state with no tax to one that does tax Social Security. Some people plan their retirement location partly around state tax rules. If you are considering a move, contact the tax authority in the state you are moving to and ask about Social Security taxation — the answer may affect your decision.

Reporting Social Security on your state return

Your Social Security benefits appear on Form SSA-1099, which you receive by January 31 each year. You report the amount shown on that form to your state, usually on a line labeled "Social Security benefits" or "taxable Social Security benefits." Some states ask you to report the full amount and then calculate the taxable portion themselves using their formula. Others ask you to calculate the taxable portion first and report only that.

Your tax software or preparer will handle this calculation for you. If you file by hand, your state's tax form or instructions will show you where to enter the amount and how to calculate it. The key is to use the amount from your SSA-1099 — do not guess or use a different number, because the state receives a copy of that form as well.

Frequently Asked Questions

Do I have to file a state tax return if I only have Social Security income?

It depends on your state and your income level. If you live in a state that does not tax Social Security, you probably do not have to file a state return unless you have other income. If you live in a state that does tax Social Security, you may have to file even if Social Security is your only income, depending on the state's filing threshold. Check your state's tax authority website or ask a tax preparer.

Can I reduce my state tax on Social Security by moving?

Yes, if you move to a state that does not tax Social Security. However, moving is a major decision that affects much more than taxes. Consider the cost of living, healthcare, family, and other factors in addition to taxes. Some people do move partly for tax reasons, but it should not be the only reason.

What if I worked in one state but now live in another?

You owe tax to the state where you currently live. Your past work history does not change that. However, if you have a pension from a state where you worked, that state may tax the pension even though you no longer live there — the rules for pensions are different from the rules for Social Security.

Does federal tax on Social Security count toward my state tax?

No. Federal and state taxes on Social Security are separate. You may owe federal tax, state tax, both, or neither depending on your income and where you live. The amount of federal tax you owe does not reduce your state tax, and vice versa.

Will my state stop taxing Social Security in the future?

Colorado and Nebraska have already passed laws to phase out their taxes on Social Security over time. Other states may do the same, but there is no way to predict which ones or when. If you live in a state that taxes Social Security, check your state's tax authority website periodically for updates on any changes to the law.