States That Tax Social Security (2026 Update)
Published April 4, 2026
Only 6 U.S. states tax Social Security benefits in 2026: Connecticut, Minnesota, Rhode Island, Utah, Vermont, West Virginia. The remaining 44 states — plus the District of Columbia — fully exempt Social Security from state income tax. The trend is moving sharply toward exemption, with Colorado, Nebraska, and West Virginia all recently repealing or phasing out their SS taxes.
States That Tax Social Security Benefits
Each of these 6 states handles Social Security taxation differently. Most offer income-based exemptions that protect lower-income retirees.
| State | How SS Is Taxed | Top Income Tax Rate | Total Tax Burden |
|---|---|---|---|
| Connecticut | Taxed for AGI above $75K (single) / $100K (joint) | 6.99% | 12.8% |
| Minnesota | Partial subtraction for lower incomes; higher earners pay full state rate | 9.85% | 12.1% |
| Rhode Island | Taxed for AGI above $101,000 (single) | 5.99% | 10.8% |
| Utah | Taxed at flat rate with tax credit offset for lower incomes | 4.65% | 9.6% |
| Vermont | Same treatment as federal taxation of SS benefits | 8.75% | 11.1% |
| West Virginia | Being phased out — full exemption expected by 2026 | 6.5% | 10.5% |
States That Don't Tax Social Security
The vast majority of states — 44 out of 50, plus DC — do not tax Social Security benefits at all. This includes all 9 no-income-tax states (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) and 32 states that have income taxes but specifically exempt Social Security.
Notable recent changes include Colorado, which fully exempted Social Security starting in 2024, and Nebraska, which completed its phase-out in 2025. West Virginia is in the process of phasing out its SS tax, with full exemption expected by 2026.
How Social Security Is Taxed at the Federal Level
Before considering state taxes, understand that the federal government already taxes Social Security for most retirees. If your combined income (AGI + nontaxable interest + half of SS benefits) exceeds $25,000 (single) or $32,000 (married filing jointly), up to 50% of your benefits are taxable. Above $34,000 (single) or $44,000 (joint), up to 85% of benefits are taxable.
States that tax Social Security generally piggyback on the federal calculation — they tax the same portion that's included in your federal AGI, then may apply their own deductions or credits on top.
Should You Move to Avoid Social Security Taxes?
The dollar impact of state Social Security taxation is real but often smaller than retirees expect. For a retiree with $30,000 in annual SS benefits and $50,000 in total income, the state tax on Social Security might amount to $500-$1,500 per year — meaningful but not life-changing.
Before relocating, consider the full tax picture. A state that exempts Social Security but has high property taxes (like New Hampshire at 1.86% effective rate) or high sales taxes could cost more overall. Use our income tax calculator to compare your total burden across states.
Also consider non-tax factors: cost of living, healthcare access, proximity to family, and quality of life. The IRS provides guidance on federal taxation of Social Security benefits.
The Trend: States Are Repealing SS Taxes
The political direction is unmistakable. In the past five years, multiple states have moved to exempt Social Security:
- Colorado (2024): Fully exempted Social Security benefits from state income tax.
- Nebraska (2025): Completed its phase-out of Social Security taxation.
- West Virginia (2024-2026): Phasing out SS tax over three years.
- New Mexico (2022): Exempted Social Security for most residents.
This trend makes the remaining states that tax SS — particularly those without income-based exemptions — increasingly outliers. Retirees in these states should watch for legislative proposals, as political pressure to exempt SS benefits continues to grow.
State-by-State Retirement Tax Comparison
Social Security taxation is just one piece of the retirement tax puzzle. For a comprehensive view that includes property taxes, estate taxes, and retirement income exclusions, see our best states for retirees ranking.
Frequently Asked Questions
Which states tax Social Security benefits?
As of 2026, 6 states tax Social Security benefits: Connecticut, Minnesota, Rhode Island, Utah, Vermont, West Virginia. However, most of these states offer partial exemptions or income-based thresholds that shield lower-income retirees from taxation.
How much can I lose to state Social Security taxes?
The impact depends on your total income and filing state. In the worst case — a high-income retiree in Minnesota — you could pay up to 9.85% state tax on a portion of your Social Security benefits. For a retiree collecting $30,000 in SS benefits with $80,000 in total income, the annual state tax on SS could range from $500 to $2,000 depending on the state.
Are more states repealing their Social Security tax?
Yes. The trend is clearly toward exemption. Colorado eliminated its SS tax in 2024. West Virginia is phasing out its SS tax by 2026. Nebraska repealed its SS tax in 2025. Over the past decade, more than a dozen states have either fully exempted SS or expanded income thresholds. No state has added a new SS tax in recent history.
About This Data
Social Security taxation data compiled from state revenue department publications, Tax Foundation research, and IRS guidance. State tax laws change frequently — verify current rules with your state's revenue department. See our methodology.