Social Security tax by state: Where your benefits are and aren't taxed

Whether your Social Security benefits are taxable depends on how much income you receive each year and where you live. Most states don’t tax Social Security, but the federal government can still tax part of your benefits if your income exceeds certain limits. 

Are Social Security benefits taxable at the federal level?

Not everyone pays federal income taxes on their Social Security benefits. Just over half of beneficiaries will owe federal taxes on their benefits in 2026, according to the Congressional Budget Office. 

Whether you will be taxed depends on your total income, including income from pensions, retirement accounts, and other sources.

The IRS uses a formula called “combined income” to determine how much of your benefits are taxable.

To calculate your combined income, add up:

1. Half your annual Social Security benefits

2. Your adjusted gross income, which includes wages, pensions, and taxable retirement withdrawals

3. Any tax-exempt interest you receive

Once you know your combined income, you can figure out how much of your Social Security benefits may be subject to federal taxes.

Source: IRS

If you’re married filing separately, the rules are different. If you lived with your spouse at any point during the year, you could owe taxes on up to 85% of your benefits regardless of how much income you receive. If you lived apart for the entire year, the $25,000 threshold applies.

Regardless of your filing status, how much you actually owe depends on your federal tax bracket and any deductions or credits you qualify for.

“Social Security income has always been partially tax-free,” said Luke Delorme, a CFP and director of financial planning at Tableaux Wealth. “Even at high income levels, only 85% of Social Security benefits are taxable.”

Not sure if your Social Security benefit is taxable? The IRS offers a free tool you can use to find out. 

What about ‘no tax on Social Security’?

The 2025 One Big Beautiful Bill Act didn’t actually eliminate taxes on Social Security or change the combined income thresholds, which haven’t been increased since 1994. 

Instead, the sweeping tax bill signed into law by President Trump introduced an additional deduction for people 65 and older worth up to $6,000 per person, or $12,000 for a married couple filing jointly if both spouses qualify. The deduction is available in tax years 2025 through 2028. 

The deduction phases out once modified adjusted gross income surpasses $75,000 for individual filers or $150,000 for joint filers. 

Depending on how much other income you have, that deduction could eliminate the taxes you owe on your benefits — or simply reduce your tax bill.

According to the White House, the new deduction moves the share of seniors who effectively owe nothing on their benefits from about 64% to about 88%. 

But why not just eliminate federal taxes on Social Security? “The new deduction isn’t as costly,” said Delorme. 

Completely eliminating federal taxes on Social Security benefits would have cost an estimated $1.4 trillion over 10 years, compared with about $93 billion for the senior deduction that passed, according to the Bipartisan Policy Center.

Are Social Security benefits taxable at the state level?

Where you live can also affect how much of your Social Security is taxable. 

The good news is only eight states still tax Social Security benefits in 2026. Even then, you might not owe anything since nearly all states offer tax breaks based on your income, age, or both.

For example, New Mexico exempts Social Security benefits from state income taxes if your adjusted gross income is $100,000 or less as a single filer, or $150,000 or less if you’re married filing jointly.

States that tax Social Security benefits in 2026

• Colorado

• Connecticut

• Minnesota

• Montana

• New Mexico

• Rhode Island

• Utah

• Vermont

States that don’t tax Social Security benefits in 2026

• Alabama

• Alaska

• Arizona

• Arkansas

• California

• Delaware

• District of Columbia 

• Florida

• Georgia

• Hawaii

• Idaho

• Illinois

• Indiana

• Iowa

• Kansas

• Kentucky

• Louisiana

• Maine

• Maryland

• Massachusetts

• Michigan

• Mississippi

• Missouri

• Nebraska

• Nevada

• New Hampshire

• New Jersey

• New York

• North Carolina

• North Dakota

• Ohio

• Oklahoma

• Oregon

• Pennsylvania

• South Carolina

• South Dakota

• Tennessee

• Texas

• Virginia

• Washington

• West Virginia

• Wisconsin

• Wyoming

Social Security tax by state

Here’s how all 50 states and Washington, D.C., tax Social Security benefits in 2026.

Social Security taxability calculator

Wondering how much Social Security you’ll receive in retirement? 

Our Social Security calculator can help you estimate how much you’ll receive per month based on your earnings history and when you plan to claim benefits. Once you know your estimated benefits, you can figure out any potential taxes you might owe. 

Recent changes to know about

Most states have moved away from taxing Social Security benefits in recent years.

West Virginia began phasing out the tax for higher-income earners in 2024, letting residents deduct 35% of their taxable benefits that year and 65% in 2025. As of 2026, all Social Security benefits are exempt from West Virginia income taxes, regardless of how much you earn.

Kansas, Missouri, and Nebraska also made changes that took effect in 2024. Kansas and Missouri eliminated income limits that prevented higher-earning retirees from qualifying for a full Social Security tax break. Meanwhile, Nebraska accelerated its phaseout, which began in 2021, eventually eliminating the tax entirely in 2024, three years ahead of schedule. 

More changes are also on the horizon.

Starting in 2027, Rhode Island will stop taxing Social Security benefits for eligible retirees who haven’t reached their full retirement age yet. Previously, you had to meet both age and income requirements to qualify for an exemption. The change is expected to help about 9,200 Rhode Islanders save on taxes. 

Meanwhile, Connecticut and Vermont considered broader Social Security exemptions in 2026, but neither bill became law, so the current exemption rules remain in effect. 

How to reduce taxes on your Social Security benefits

You can’t change IRS rules, but there are a few ways to lower your income and potentially reduce the taxes you owe on your Social Security benefits.

• Be strategic about retirement withdrawals: Taking a big chunk out of your traditional IRA or 401(k) in a single year could increase the taxes you owe on your Social Security benefits. Spreading out withdrawals over several years can help lower your tax bill.

• Draw from a Roth IRA: Unlike traditional retirement accounts, qualified Roth IRA withdrawals don’t count toward the income used to determine whether your Social Security benefits are taxable. So if you need extra money one year, tapping your Roth IRA instead of a traditional IRA or 401(k) could help reduce your tax bill. 

• Watch your investment income: Selling stocks or other investments for a profit in a brokerage account can increase your taxable income, which could also make more of your Social Security benefits taxable. Even interest from tax-free municipal bonds counts when the IRS calculates your combined income for Social Security taxes.

• Take advantage of tax breaks: If you’re 65 or older, you may qualify for the new federal senior tax deduction. Many states also offer exemptions or tax credits that can reduce what you owe on your benefits.

• Have taxes taken out of your checks: If you think you might owe federal taxes, you can ask Social Security to withhold money from your monthly payments. This won’t save you money on taxes, but it can help you avoid getting stuck with a big bill when you file your return.

Before making a large retirement withdrawal or moving money from a traditional IRA to a Roth IRA, consider talking to a tax professional who can explain how the move might impact your Social Security taxes.

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Bottom line

Most states won’t tax your Social Security benefits, but federal taxes can still apply. It’s important to check the rules at both the state and federal levels before assuming your entire monthly paycheck is yours to keep.

Social Security taxes FAQs

Do I have to pay taxes on Social Security after age 70?

Turning 70 doesn’t trigger a special federal exemption. You’ll still use the same combined income rules to determine if your Social Security benefits are taxable, though the new additional senior deduction could lower your tax bill through 2028.

Does Social Security count as income for state taxes?

In eight states, at least some federally taxable benefits can count toward state taxable income. Elsewhere, states exempt benefits or don’t levy an income tax. 

Do states that tax Social Security also tax pensions and 401(k) withdrawals?

Not necessarily. Each state sets its own rules for pensions, IRAs, and workplace retirement plans. And a state that exempts Social Security, such as California, may still tax withdrawals from your 401(k).

Will Social Security stop being taxed in 2027?

There’s no federal law in place to stop taxing Social Security in 2027. On the state level, Rhode Island’s exemption expands that year, but qualifying higher-income residents can still owe state tax.

Can I avoid state tax on Social Security by moving?

Yes, if you establish residency in a state that doesn’t tax benefits. But moving won’t erase federal taxes.