Thirteen states have no income tax on Social Security benefits
Thirteen states do not tax Social Security income at all: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, South Dakota, Tennessee, and Wyoming. If you live in one of these states, your Social Security payments are not subject to state income tax, regardless of how much you receive or what other income you have.
The other 37 states and Washington, D.C. do tax Social Security benefits, but most of them only tax it if your total income exceeds a certain threshold. That threshold varies by state and by whether you file as single, married filing jointly, or married filing separately. Some states tax it the same way the federal government does; others use their own rules.
Whether your state taxes Social Security matters most if you have other income — from a job, a pension, investments, or rental property. If Social Security is your only income, you likely owe no state tax regardless of where you live, because most states' thresholds are high enough that retirees with only Social Security fall below them.
Key Takeaways
- Thirteen states — Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, South Dakota, Tennessee, and Wyoming — do not tax Social Security benefits under any circumstances.
- In the other 37 states and Washington, D.C., Social Security is taxed only if your combined income (including half your Social Security) exceeds a state-specific threshold.
- Most states that do tax Social Security use the same federal formula, which counts half your benefits plus all other income to determine the taxable amount.
- If Social Security is your only income source, you typically owe no state tax in most states because the threshold is higher than your total income.
How states calculate taxable Social Security income
States that tax Social Security use one of two methods. Most follow the federal formula: they add half your Social Security benefits to all your other income (wages, pensions, interest, dividends, rental income), and if that combined total exceeds a threshold, a portion of your benefits becomes taxable.
The federal thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. If your combined income is below that, none of your Social Security is taxable. If it is above that, up to 50 percent of your benefits may be taxable, and in some cases up to 85 percent can be taxed.
A smaller number of states use their own thresholds and formulas instead of the federal method. Colorado, Connecticut, Kansas, Missouri, Montana, Nebraska, Rhode Island, and Utah have their own rules. For example, Colorado taxes Social Security only for people over 55 with incomes above $24,000 (single) or $32,000 (married). Nebraska taxes it only for people with federal adjusted gross income above $34,000 (single) or $44,000 (married).
Because state rules vary, you may owe tax in one state but not another, even with the same income. This is why checking your specific state's rules matters if you are considering moving in retirement or if you have moved recently.
States that tax Social Security with high thresholds
Some states tax Social Security in theory but set thresholds so high that most retirees never pay it. Connecticut, for instance, taxes Social Security only for single filers with federal adjusted gross income above $75,000 or married couples above $100,000. Montana taxes it only for those with incomes above $47,000 (single) or $59,000 (married).
These high thresholds mean that if you are receiving a typical Social Security benefit — the average is around $1,800 per month — and you have modest other income, you likely fall below the taxable threshold. You would owe no state tax on your benefits even though your state technically taxes them.
The practical effect is that these states function almost like no-tax states for most retirees. However, if you have a pension, continued employment income, or significant investment income, you may cross the threshold and owe tax. Knowing your state's specific threshold helps you plan whether to report your benefits on your state return.
States that follow federal taxation rules closely
Most states that tax Social Security use the federal thresholds of $25,000 (single) or $32,000 (married filing jointly). These states include Arkansas, Colorado (with modifications), Delaware, Hawaii, Idaho, Indiana, Kentucky, Louisiana (partially), Maine (partially), Maryland, Massachusetts, Michigan, Minnesota, Mississippi (partially), Missouri (partially), Montana, Nebraska, New Hampshire, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont, Virginia, Washington, West Virginia, and Wisconsin.
In these states, if your combined income (half your Social Security plus all other income) is below the threshold, you owe no state tax on your benefits. If it exceeds the threshold, the calculation follows federal rules: up to 50 percent of your benefits may be taxable if you are between the first and second threshold, and up to 85 percent if you are above the second threshold.
The second threshold is $34,000 (single) or $44,000 (married filing jointly) under federal rules. States using federal rules typically use these same numbers, though some have adjusted them slightly over time.
How to find your state's specific rules
Your state's tax department website has the most current information about Social Security taxation. Search for "[your state] Social Security tax" or "[your state] retirement income" on the state revenue or taxation department site. Most state sites include worksheets or examples showing how to calculate the taxable portion.
Your state tax form — usually the state income tax return — also includes instructions for reporting Social Security. If you use tax software, it typically asks your state and adjusts the Social Security questions based on your state's rules. If you file with a tax preparer, they should know your state's rules and explore them correctly.
If you are moving to a new state or considering it, contact that state's revenue department before you move. They can tell you whether your specific income situation would be taxed and by how much. This information can affect your retirement planning, especially if you are deciding between states.
What to report on your state return
On your federal return, you report your Social Security on Form SSA-1099, which you receive in January. Your state return asks for the same information, but how much you actually report as taxable depends on your state's rules and your combined income.
If you live in a no-tax state, you do not report Social Security on your state return at all. If you live in a state that taxes it, you typically report the amount shown on your federal return as taxable, unless your state has different rules. Some states ask you to recalculate using their own thresholds.
If you are unsure whether any of your Social Security is taxable in your state, the safest approach is to use your state's worksheet or contact a tax preparer. Reporting too little can result in an audit; reporting too much means you pay tax you do not owe. Getting it right the first time is worth the effort.
Frequently Asked Questions
If I move from a state that taxes Social Security to one that does not, do I get a refund?
No. You owe tax to the state where you lived when you earned the income. If you moved mid-year, you may owe tax to both your old and new state for the portions of the year you lived in each. File a part-year return in both states if you moved during the tax year.
Does the federal government tax my Social Security if a state does not?
Yes. State and federal taxation are separate. Whether your state taxes Social Security has no effect on federal tax. You may owe federal tax on your benefits even if your state does not tax them, depending on your combined income and federal thresholds.
What counts as income when calculating whether my Social Security is taxable?
Wages, self-employment income, pensions, interest, dividends, capital gains, rental income, and distributions from retirement accounts all count. In most states, half your Social Security benefits are also added to this total to determine whether you cross the taxable threshold. Tax-exempt interest (such as from municipal bonds) counts in some states but not others.
If I have very little income besides Social Security, will I owe state tax?
Probably not. Most states' thresholds are high enough that retirees with only Social Security income fall below them. However, if you have a pension, part-time job income, or investment income, you may cross the threshold. Check your state's specific threshold to be sure.
Can I reduce my taxable Social Security by moving to a no-tax state?
Only if you actually move and establish residency there. You cannot claim residency in a no-tax state if you still live elsewhere. If you do move, you owe tax to your old state for the part of the year you lived there, and to your new state starting the day you move. After that, your new state's rules explore.