Key Takeaways
- Thirteen states have income taxes that can reach Social Security benefits; the other 37 states either have no income tax or exempt Social Security entirely.
- Whether your benefits are taxed depends on your combined income (wages, pensions, interest, and half your Social Security), not on the benefit amount itself.
- Some states tax Social Security the same way the federal government does; others use different thresholds or tax a different percentage of your benefits.
- You may owe state tax on benefits even if you owe no federal tax, because state thresholds and rules differ from federal rules.
- Your state tax return will show whether benefits are taxable in your state; you can also contact your state revenue office to confirm.
The Thirteen States That Tax Social Security
Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all include Social Security in their state income tax calculations. However, each state applies its own rules about how much of your benefits count as taxable income and at what income level taxation begins.
Some of these states have carved out partial exemptions. For example, Colorado exempts Social Security for residents over 55, and Kansas exempts it for residents over 70. Connecticut and Missouri have income thresholds below which no Social Security is taxed, similar to the federal system. Others, like Vermont and Rhode Island, tax Social Security more broadly once you cross their income threshold.
The key point is that living in one of these states does not automatically mean your benefits are taxed — it means your state considers them when calculating your tax liability. Your actual tax bill depends on your total income for the year.
How Combined Income Determines Taxation
States that tax Social Security use combined income to decide whether benefits are taxable. Combined income includes your wages, self-employment income, pensions, interest, dividends, and half of your Social Security benefits. This is the same calculation the federal government uses.
For example, if you receive $20,000 in Social Security and have $30,000 in pension income, your combined income is roughly $40,000 (the $30,000 pension plus half the $20,000 benefit). If your state's threshold is $25,000 for single filers, you have crossed it, and some or all of your benefits become taxable in that state.
Each state sets its own thresholds, and they vary significantly. A combined income that triggers taxation in one state may not in another. You need to check your specific state's rules, not assume they match the federal thresholds or those of a neighboring state.
State-by-State Differences in Tax Treatment
| State | Tax Treatment of Social Security |
|---|---|
| Colorado | Exempt for residents age 55 and older; taxable for younger recipients |
| Connecticut | Taxable only if combined income exceeds $50,000 (single) or $60,000 (married) |
| Kansas | Exempt for residents age 70 and older; taxable for younger recipients |
| Minnesota | Taxable with no age exemption; follows federal taxation rules closely |
| Missouri | Exempt for residents age 59 and older; taxable for younger recipients |
| Montana | Taxable; no age exemption |
| Nebraska | Taxable; no age exemption |
| New Mexico | Exempt for residents age 65 and older; taxable for younger recipients |
| Rhode Island | Taxable with no age exemption; follows federal taxation rules |
| Utah | Taxable; no age exemption |
| Vermont | Taxable; no age exemption |
| West Virginia | Exempt for residents age 59 and older; taxable for younger recipients |
Notice that several states offer age-based exemptions. If you are 59 or older in Missouri, 55 or older in Colorado, or 70 or older in Kansas, your Social Security is not taxed in that state even if your combined income is high. Other states — Minnesota, Montana, Nebraska, Rhode Island, Utah, and Vermont — tax Social Security regardless of age.
The percentage of your benefits that becomes taxable also varies. Some states tax up to 85 percent of benefits (matching the federal maximum), while others tax a lower percentage or use a different formula altogether. Your state's tax form or instructions will specify the exact calculation.
When You Owe State Tax but Not Federal Tax
It is possible to owe state income tax on Social Security while owing nothing to the federal government. This happens when your combined income exceeds your state's threshold but falls below the federal threshold, or when your state taxes a higher percentage of benefits than the federal government does.
For instance, if you are a single filer in Connecticut with $48,000 in combined income, you owe no federal tax on Social Security (the federal threshold is $25,000). But Connecticut's threshold is $50,000, so you still owe no state tax either. However, if your combined income is $52,000, Connecticut taxes part of your benefits while the federal government does not.
The reverse is also true: you might owe federal tax on benefits but not state tax if you live in one of the 37 states that do not tax Social Security at all. This is why you cannot assume your federal tax situation applies to your state.
How to learn about Your State Taxes Social Security
The simplest way to confirm whether your state taxes Social Security is to look at your state income tax form or instructions. Most state revenue departments publish a guide that specifically addresses Social Security taxation. You can find this on your state's official revenue or taxation website.
If you file with a tax preparation software or work with a tax preparer, they will calculate your state tax liability based on your state's rules. The software or preparer will show you whether any of your Social Security is taxable in your state and how much you owe.
You can also contact your state's revenue department directly. They can tell you whether your state taxes Social Security and, if it does, whether you personally owe tax based on your income and filing status. Most states have a phone line and a website where you can ask this question.
What to Do If You Live in a Taxing State
If you live in one of the thirteen states that tax Social Security and your combined income exceeds your state's threshold, you will need to report your benefits on your state tax return. Your state form will ask for your total Social Security income and will calculate the taxable portion based on your combined income and filing status.
You may be able to reduce your state tax liability by managing your income. For example, if you are close to your state's threshold, deferring a pension distribution or delaying a large capital gain to the next year might keep you below the threshold. This strategy works only if you have control over the timing of your income, which not everyone does.
If you expect to owe state tax on Social Security, you can request that your state withhold taxes from your benefit payments. Contact the Social Security Administration to set up state tax withholding. This way, you will not face a large bill when you file your return.
Frequently Asked Questions
Do I have to pay federal tax on Social Security if I live in a state that does not tax it?
Yes. Federal taxation of Social Security is separate from state taxation. Even if your state does not tax Social Security, you may still owe federal tax on your benefits if your combined income exceeds the federal threshold ($25,000 for single filers, $32,000 for married filing jointly).
If I move to a state that does not tax Social Security, do I get a refund on past taxes?
No. You owe state tax based on where you lived when you earned the income, not where you live when you file. If you lived in a taxing state when you received the benefits, you owed tax in that state for those years, even if you move later.
Can I reduce my Social Security tax by taking a lower benefit amount?
No. The amount of Social Security you receive does not change your tax liability — your combined income does. Lowering your benefit would lower your combined income and might reduce your tax, but Social Security does not allow you to choose a lower benefit amount for tax reasons.
Does my spouse's Social Security count toward my combined income?
No. Each person calculates combined income separately. Your spouse's benefits are not included in your combined income calculation, and yours are not included in theirs. However, if you file a joint return, the state may consider both spouses' incomes together when determining the tax rate or threshold.
What if I worked in multiple states during my life — which state taxes my Social Security?
The state where you lived when you received the Social Security benefits is the one that can tax them. Your work history in other states does not affect which state has the right to tax your benefits. If you move to a new state, that state's rules explore to your benefits going forward.