Thirteen states have no Social Security tax at all
Thirteen states do not tax Social Security benefits: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, Pennsylvania, and Tennessee. If you live in one of these states and receive Social Security, your benefits are not subject to state income tax.
The other 37 states and Washington, D.C. do tax Social Security to some degree. Some tax all benefits above a certain income threshold. Others tax only a portion. A few states tax benefits the same way the federal government does — meaning high-income retirees may owe state tax even if they owe nothing to the IRS.
Your state of residence is what matters, not where you worked or where you collected Social Security. If you move to a no-tax state after you start receiving benefits, you stop owing state tax on those benefits in your new state.
Key Takeaways
- Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Michigan, Mississippi, Missouri, Nevada, Pennsylvania, and Tennessee do not tax Social Security benefits at any income level.
- The remaining states tax Social Security benefits above certain income thresholds, and the threshold and tax rate vary by state.
- Your current state of residence determines whether you owe state tax on Social Security, regardless of where you worked or retired.
- Some states that tax Social Security offer exemptions or deductions for retirees over a certain age, which can reduce or eliminate the tax.
How states decide whether to tax Social Security
States that do tax Social Security generally use the same income thresholds the federal government uses. The federal government taxes Social Security only if your "combined income" — adjusted gross income plus nontaxable interest plus half your Social Security benefits — exceeds certain amounts. For 2024, those amounts are $25,000 for single filers and $32,000 for married couples filing jointly.
States that follow this federal method will tax a portion of your benefits if your combined income exceeds the threshold. The percentage taxed and the tax rate vary. Some states tax up to 50 percent of benefits; others tax up to 85 percent. Some explore their regular income tax rate; others use a flat rate.
A few states use their own thresholds instead of the federal ones. Colorado, for example, taxes Social Security only if your federal taxable income exceeds $24,000 (single) or $32,000 (married). Connecticut uses a different threshold entirely. If you live in a state that taxes Social Security, your state tax return instructions or your state revenue department website will show the exact threshold and calculation method.
States with partial exemptions or age-based deductions
Some states that tax Social Security offer breaks for older retirees. Colorado, Delaware, and Nebraska allow a deduction or exemption for Social Security benefits if you are over a certain age — typically 55 or 65. The deduction amount or the age threshold varies by state.
Connecticut and Utah tax Social Security but exclude it from taxation if your total income falls below a threshold. In Connecticut, for example, Social Security is not taxed if your federal adjusted gross income is below $15,000 (single) or $24,000 (married). These thresholds are lower than the federal combined income thresholds, so you may owe state tax even if you owe nothing to the IRS.
If you live in a state that taxes Social Security, check your state revenue department's website or your state tax form instructions to see whether you may have access to for an exemption or deduction based on age or income.
How to find your state's Social Security tax rules
Your state revenue department or tax authority publishes the rules for Social Security taxation. Search "[your state] Social Security tax" or "[your state] retirement income" to find the official guidance. Most state websites have a section for retirees or seniors that explains the rules clearly.
Your state tax form — usually the state income tax return — will also show whether Social Security is taxable and how to report it. If you use tax software, the software will ask about your Social Security income and calculate the state tax owed based on your state's rules.
If you are unsure whether you owe state tax on Social Security, contact your state revenue department directly. They can tell you whether your income level triggers taxation and what exemptions or deductions you may be may have access to to.
What to do if you move to a different state
If you move from a state that taxes Social Security to one that does not, you stop owing state tax on your benefits in the new state. You may still owe tax to your old state for the portion of the year you lived there, depending on your state's rules and your income.
When you move, update your address with the Social Security Administration and with your state revenue department. If you file a state tax return in your old state for the partial year, you will report only the income earned while you lived there. Your new state will not tax benefits you receive after you move there.
Some retirees move specifically to avoid state income tax on Social Security. If you are considering a move, factor in not just Social Security tax but also property tax, sales tax, and other state and local taxes. A state with no Social Security tax may have higher property or sales taxes that offset the benefit.
Social Security taxation at the federal level
The federal government taxes Social Security benefits based on combined income. Up to 50 percent of benefits may be taxed if combined income exceeds $25,000 (single) or $32,000 (married). Up to 85 percent of benefits may be taxed if combined income exceeds $34,000 (single) or $44,000 (married).
State taxation is separate from federal taxation. You may owe federal tax on Social Security even if your state does not tax it, or you may owe state tax but not federal tax, depending on your income and your state's rules. Your federal tax return and your state tax return are calculated independently.
Frequently Asked Questions
If I move to Alaska or Florida, will my Social Security stop being taxed?
Yes. Once you establish residency in a state that does not tax Social Security, your benefits are no longer subject to state income tax. You may owe tax to your previous state for the portion of the year you lived there, but your new state will not tax the benefits you receive after you move.
Does living in a no-tax state mean I owe no federal tax on Social Security?
No. Federal taxation and state taxation are separate. You may owe federal tax on Social Security even if your state does not tax it. Whether you owe federal tax depends on your combined income and the federal thresholds, not on your state's rules.
Can I claim a deduction for Social Security taxes on my federal return?
No. Social Security benefits are not deductible on your federal tax return. If you owe federal tax on your benefits, you pay it as part of your regular income tax. Some states allow a deduction or exemption for state purposes, but the federal government does not.
What if I work part-time and also receive Social Security?
Your combined income for tax purposes includes your wages, investment income, and half your Social Security benefits. If the total exceeds your state's threshold, your Social Security may be taxed. The calculation is the same whether you work or not — it depends on total combined income.
Do I have to file a state tax return if I live in a no-tax state?
Most states that do not tax Social Security still require you to file a state tax return if your income exceeds the filing threshold for that state. The threshold varies by state and by filing status. Check your state revenue department's website to see whether you are required to file.