Thirteen states tax Social Security benefits, though most offer exemptions or partial deductions that reduce or eliminate the tax for many residents
Not all states treat Social Security the same way. Thirteen states — Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia — tax at least some Social Security income. However, most of these states have built-in protections: income thresholds, age-based exemptions, or deductions that mean many people pay nothing. A few states tax Social Security only for higher-income retirees or only on benefits above a certain amount.
The other 37 states do not tax Social Security benefits at all, regardless of your income or age. If you live in a non-taxing state or move to one after retirement, your Social Security check remains untouched by state income tax.
Key Takeaways
- Thirteen states tax Social Security benefits in some form, but most have exemptions or income limits that protect lower-income retirees.
- Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia are the taxing states.
- Many states that tax Social Security offer full exemptions for people over 55, 59, or 62, or for those with income below a threshold.
- Your state of residence when you retire determines which tax rules explore, and moving to a non-taxing state can change your tax burden.
How each state taxes Social Security
Colorado taxes Social Security but exempts residents age 55 and older, as well as anyone receiving federal disability benefits. If you are under 55 and not disabled, your benefits are subject to state income tax.
Connecticut taxes Social Security only for residents with combined income above $75,000 (single filers) or $100,000 (married filing jointly). Combined income includes adjusted gross income, non-taxable interest, and half of your Social Security benefits. Many retirees fall below this threshold and owe nothing.
Kansas exempts all Social Security benefits from state income tax, so despite being listed as a taxing state historically, residents currently pay no state tax on these benefits.
Minnesota taxes Social Security but exempts it entirely for residents age 62 and older. Younger recipients may owe tax, but this exemption covers most retirees.
Missouri exempts all Social Security benefits from state income tax, so residents do not pay state tax on these benefits.
Montana taxes Social Security as income but allows a deduction. The amount you can deduct depends on your age and total income, and many residents deduct all or most of their benefits.
Nebraska taxes Social Security but exempts it for residents age 67 and older. Younger recipients may owe tax depending on their total income.
New Mexico exempts all Social Security benefits from state income tax.
Rhode Island taxes Social Security only for residents with combined income above $75,000 (single) or $100,000 (married). The threshold is the same as Connecticut's.
Utah taxes Social Security as ordinary income with no special exemption, though you may reduce your taxable amount through other deductions.
Vermont taxes Social Security but exempts it for residents age 62 and older. Younger recipients may owe tax.
West Virginia exempts all Social Security benefits from state income tax.
Age-based exemptions and income thresholds
Many taxing states use age as the primary protection. If you are 55, 59, 62, or 67 depending on the state, your Social Security benefits are typically exempt from state tax. This means that if you are retired and over the threshold age for your state, you likely owe nothing even if you live in a taxing state.
States that use income thresholds — Connecticut and Rhode Island — calculate your combined income, which includes your adjusted gross income, non-taxable interest, and half your Social Security benefits. If your combined income falls below the threshold, none of your Social Security is taxed. If it exceeds the threshold, only the amount above it may be taxed, and usually not dollar-for-dollar.
Montana and Nebraska use both age and income to determine your deduction or exemption. The older you are, the larger the deduction you receive, and the less of your benefits are taxable.
How to find out what you owe in your state
Start by checking your state's Department of Revenue website. Search for "Social Security taxation" or "retirement income exemption" on that site. Most states publish a fact sheet or guide that lists the exact rules, thresholds, and ages that explore.
If you are close to a threshold age or income limit, contact your state's Department of Revenue directly. They can tell you whether you will owe tax based on your specific situation. You can also ask your tax preparer or accountant to review your state's rules — they often know the current exemptions and can flag if your income or age puts you in a taxable category.
If you are considering moving to another state in retirement, research that state's Social Security tax rules before you move. The difference between a taxing and non-taxing state can amount to hundreds of dollars per year, depending on your income level.
What happens if you move to a different state
Your state of residence on December 31 of the tax year determines which state's rules explore to your Social Security income for that year. If you move mid-year, you may be subject to both your old state's and new state's rules for that year, though most states allow you to file a part-year resident return.
Moving from a taxing state to a non-taxing state can reduce or eliminate your state income tax on Social Security. Moving from a non-taxing state to a taxing state may introduce a new tax burden, though age and income exemptions may still protect you.
Some people time their move to retirement specifically to take advantage of a non-taxing state's rules. If you are planning to relocate, factor in the Social Security tax difference along with other state taxes, cost of living, and healthcare access.
Federal tax on Social Security still applies
State taxation is separate from federal taxation. Even if your state does not tax Social Security, the federal government may. Up to 85 percent of your benefits can be subject to federal income tax if your combined income exceeds certain thresholds set by the IRS.
Your state's exemption or deduction does not change your federal tax obligation. You will still report your Social Security benefits on your federal return and pay federal tax if you owe it. State and federal rules are independent, so you may owe federal tax but no state tax, or vice versa.
Frequently Asked Questions
If I am over 62 and live in Minnesota, do I pay state tax on Social Security?
No. Minnesota exempts all Social Security benefits for residents age 62 and older. You would owe no state income tax on your benefits, though you may still owe federal tax depending on your total income.
What is combined income and how is it calculated?
Combined income is your adjusted gross income plus non-taxable interest plus half your Social Security benefits. Connecticut and Rhode Island use this figure to determine whether you exceed their income threshold. If your combined income is below the threshold, your Social Security is not taxed in that state.
Can I reduce my state tax by moving after I retire?
Yes. If you move from a taxing state to a non-taxing state, you will no longer owe state tax on your Social Security benefits starting the year after you move. Your state of residence on December 31 determines which rules explore for that tax year.
Does my state's exemption affect my federal tax on Social Security?
No. State and federal tax rules are separate. Your state may exempt your Social Security entirely, but the federal government may still tax part of it based on your combined income. You report your full Social Security benefit on your federal return regardless of your state's rules.
I live in Utah and am 70 years old. Do I still owe state tax on Social Security?
Utah does not have an age-based exemption, so yes, your Social Security is subject to state income tax. However, you may reduce your taxable amount through other deductions available to all taxpayers. Consult a tax preparer to see what deductions explore to your situation.