Thirteen states do not tax Social Security income at all

If you receive Social Security benefits, the state you live in determines whether you owe state income tax on that money. Thirteen states have chosen not to tax Social Security benefits: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, Nevada, South Dakota, Tennessee, and Wyoming. The other 37 states and Washington, D.C. tax Social Security to some degree, though most offer partial exemptions or only tax it if your total income exceeds a certain threshold.

Federal tax on Social Security is separate from state tax. The federal government taxes Social Security benefits based on your combined income (adjusted gross income plus nontaxable interest plus half your Social Security benefits). State tax depends only on whether your state has chosen to tax it. You may owe federal tax on your benefits even if you live in a state that does not tax them, or you may owe neither.

Key Takeaways

  • Thirteen states—Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Montana, Nevada, South Dakota, Tennessee, and Wyoming—do not tax Social Security benefits at any income level.
  • The remaining 37 states and Washington, D.C. tax Social Security benefits, though most allow exemptions if your income falls below a threshold or if you are over a certain age.
  • State tax on Social Security is separate from federal tax; you may owe federal tax even in a no-tax state, or owe neither depending on your total income.
  • If you moved to a no-tax state after receiving benefits, you generally do not owe back taxes to your previous state on those benefits.

How the 37 states that do tax Social Security handle exemptions

Most states that tax Social Security offer at least a partial break. Some states exempt all Social Security income from state tax if you meet an age requirement—usually 62 or 65. Connecticut, Delaware, Georgia, Indiana, Kentucky, Maryland, Massachusetts, Michigan, Mississippi, New Jersey, New York, North Carolina, Ohio, Pennsylvania, and Rhode Island all exempt Social Security entirely if you are over a certain age, though the age threshold varies by state.

Other states use an income threshold. Colorado, Minnesota, Missouri, Montana, Nebraska, New Mexico, Utah, and Vermont exempt Social Security if your total income stays below a set amount. That amount changes yearly and depends on your filing status (single, married filing jointly, or married filing separately). For example, Colorado exempts all Social Security for single filers with federal adjusted gross income under a certain limit, which the state updates each year.

A few states—including Hawaii, Illinois, and Iowa—exempt Social Security entirely regardless of age or income, which functionally makes them no-tax states for this income type, though they may still tax other retirement income.

States with no income tax versus states that exempt Social Security

Nine states have no state income tax at all: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming. (New Hampshire and Tennessee tax only investment income, not wages or Social Security.) If you live in one of these states, you pay no state income tax on Social Security or any other income source.

The remaining four states in the no-Social-Security-tax group—Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, and Montana—do have state income tax, but they have chosen to exempt Social Security specifically. You may still owe state tax on pensions, investment income, or wages in these states, even though Social Security is untaxed.

How to find your state's specific rules

Your state's tax department website lists the current rules for Social Security taxation. Search "[your state] Social Security tax" or visit your state's department of revenue or taxation directly. The site will show the income thresholds, age requirements, and filing forms you need.

If you are unsure whether you owe state tax on your benefits, contact your state's tax department or a tax professional who knows your state's rules. Rules change occasionally, and some states have different rules for residents versus nonresidents. Your state may also have a tax form specifically for Social Security income or retirement income that clarifies what is taxed.

What happens if you move to a different state

If you move from a state that taxes Social Security to a state that does not, you generally do not owe back taxes to your previous state on Social Security benefits you received while living there. However, you may owe tax to the previous state on other income (wages, pensions, or investment income) for the part of the year you lived there.

When you move, update your address with the Social Security Administration and notify both your old and new state tax departments. Some states require you to file a part-year resident return for the year you moved. Your new state will not tax Social Security you received before you moved there, but it will tax benefits you receive after you establish residency.

Federal tax on Social Security is separate from state tax

Even if you live in a state that does not tax Social Security, you may still owe federal income tax on your benefits. The federal government taxes Social Security if your combined income exceeds a threshold. Combined income is your adjusted gross income plus nontaxable interest plus half your Social Security benefits.

For 2024, if you are single and your combined income is between $25,000 and $34,000, you may owe federal tax on up to 50 percent of your benefits. If your combined income is above $34,000, you may owe tax on up to 85 percent of your benefits. The thresholds are higher for married couples filing jointly. These thresholds do not change yearly, so they have remained the same since 1984.

You can estimate your federal tax liability using the Social Security Administration's online calculator or by working with a tax professional. The IRS Form 1040 and Schedule 1 are where you report Social Security income on your federal return.

Frequently Asked Questions

Do I owe federal tax on Social Security if I live in a no-tax state?

Living in a state that does not tax Social Security does not affect federal tax. You may still owe federal income tax on your benefits if your combined income (adjusted gross income plus nontaxable interest plus half your Social Security) exceeds the federal threshold of $25,000 for single filers or $32,000 for married couples filing jointly.

Can I move to a no-tax state to avoid paying taxes on Social Security?

You can move to a state that does not tax Social Security, and you will not owe that state's tax on your benefits going forward. However, you will still owe federal tax if your income is high enough. Moving for tax reasons alone may not save you money if federal tax applies to your situation.

What if I receive Social Security and a pension in a state that taxes one but not the other?

Each type of income has its own tax rules in your state. For example, Illinois does not tax Social Security but does tax pensions. Check your state's tax department website or contact them directly to learn which types of retirement income are taxed and which are exempt.

Do I need to file a state tax return if I only receive Social Security in a no-tax state?

No. If you live in a state that does not tax Social Security and you have no other income subject to state tax, you do not need to file a state return. However, you may still need to file a federal return depending on your total income and filing status.

What if I moved mid-year—do I owe taxes to both states?

You may owe tax to both states for the year you moved, depending on each state's rules. Most states require you to file a part-year resident return for the portion of the year you lived there. Contact both your old and new state tax departments to learn what forms you need to file.