What States Don’t Tax Social Security Benefits in 2025?
Planning for retirement? Where you live could impact how much of your Social Security income you actually keep. While the federal government may still tax a portion of your benefits, many states offer full exemptions. As of 2025, 41 states do not tax Social Security income, giving retirees more flexibility to stretch their budgets.
Here’s everything you need to know about where Social Security is tax-free—and where it’s not.
These 9 States Still Tax Social Security Benefits
Only nine U.S. states still impose taxes on Social Security in some form:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
However, exemptions vary by income and filing status. For example:
- Connecticut exempts single filers with AGI under $75,000 and joint filers under $100,000.
- West Virginia is phasing out its tax completely—residents can subtract 65% of benefits from income in 2025, rising to 100% in 2026.
States like Minnesota, New Mexico, Rhode Island, and Vermont also offer partial exemptions based on income thresholds.
41 States That Don’t Tax Social Security Benefits
The majority of U.S. states have dropped or never enacted a tax on Social Security benefits. Here’s the full list as of 2025:
States with No Social Security Tax:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Delaware
- 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
- Wisconsin
- Wyoming
9 States That Don’t Tax Any Income
Among those 41, nine states stand out for not taxing any personal income at all, making them especially attractive for retirees:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Additionally, Mississippi has passed legislation to eliminate its state income tax by 2040, pending revenue benchmarks.
Federal Taxes Still Apply to Social Security
Even if your state doesn’t tax Social Security, the IRS might. Depending on your combined annual income and tax filing status, up to 85% of your Social Security benefits could be taxed federally.
Federal Tax Thresholds on Social Security:
| Filing Status | Combined Income | Taxable Portion of Benefits |
|---|---|---|
| Individual | Up to $25,000 | 0% |
| $25,000 – $34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Jointly | Up to $32,000 | 0% |
| $32,000 – $44,000 | Up to 50% | |
| Over $44,000 | Up to 85% |
To calculate your combined income, add:
- Your adjusted gross income
- Any nontaxable interest
- Half of your Social Security benefits
Could Federal Social Security Taxes Be Eliminated?
Possibly. In 2025, President Donald Trump proposed ending federal taxes on Social Security altogether. While the proposal is gaining traction among retirees, critics warn it could accelerate the depletion of the Social Security Trust Fund.
Until any changes are signed into law, retirees should assume federal tax rules remain in place.
Bottom Line: Choose Your Retirement State Wisely
If you rely heavily on Social Security in retirement, where you live matters. States with no Social Security tax (and especially those with no income tax) can help your benefits stretch further. While federal taxes may still apply, smart planning—and choosing the right state—can protect more of your hard-earned retirement income.