Which States Tax Social Security Benefits?
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In 2023, 11 states tax Social Security income, and that number drops to nine in 2024. Here’s what that could mean for your own retirement based on where you live.
» MORE: How Social Security works
States that tax Social Security benefits
The following 11 states tax Social Security benefits in 2023. The amount of state tax you’ll pay depends on factors such as your adjusted gross income (AGI), tax-filing status and, in some cases, your age. Keep in mind that tax laws can (and often do) change. Consult your state tax authority for the most up-to-date information.
Colorado
Colorado taxes Social Security benefits for taxpayers who are under 65 at the end of the tax year. For taxpayers between age 55 and 65, the first $20,000 of Social Security benefits are not taxable.
Connecticut
Connecticut taxes Social Security benefits if your AGI is over $75,000 ($100,000 if married filing jointly).
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Kansas
Kansas taxes Social Security for taxpayers with AGIs over $75,000.
Minnesota
Minnesota taxes Social Security benefits for people with AGIs over $78,000 ($100,000 if married filing jointly). Taxpayers with incomes above those thresholds may still get a partial exemption (the tax break phases out at a rate of 10% for each $4,000 of AGI over the threshold).
Missouri
Missouri taxes Social Security in 2023 but will cease doing so in 2024. In 2023, taxpayers get an exemption if they are at least 62 and have incomes below $85,000 ($100,000 if married filing jointly). Taxpayers with incomes above those thresholds may still get a partial exemption (the exemption is reduced by $1 for every $1 that the income exceeds the limit).
Montana
Montana taxes Social Security benefits for adjusted gross incomes above $25,000 ($32,000 if married filing jointly).
Nebraska
Nebraska taxes Social Security in 2023 but will cease doing so in 2024. In 2023, Social Security benefits are taxable if your AGI is over $45,790 ($61,760 if married filing jointly).
New Mexico
New Mexico taxes Social Security benefits for taxpayers with more than $100,000 in income ($75,000 if married filing separately or $150,000 if a surviving spouse, head of household or married filing jointly).
Rhode Island
Rhode Island taxes Social Security benefits if you begin receiving retirement benefits before you reach Social Security’s full retirement age (usually 67) or if your AGI is over $95,800 ($119,750 for married filing jointly). People under those thresholds can exempt up to $15,000 of their retirement income.
Utah
Utah taxes Social Security benefits for taxpayers who make over $45,000 ($75,000 if head of household or married filing jointly; $37,500 if married filing separately). People under those thresholds may qualify for a nonrefundable tax credit.
Vermont
Vermont taxes Social Security for taxpayers with AGIs above $60,000 ($75,000 if married filing jointly). People with AGIs between $50,000 and $59,999 ($65,001 and $74,999 if married filing jointly) get a partial exemption.
States that do not tax Social Security benefits
Most states do not tax Social Security benefits. They include:
Alabama.
Alaska.
Arizona.
Arkansas.
California.
Delaware.
Florida.
Georgia.
Hawaii.
Idaho.
Illinois.
Indiana.
Iowa.
Kentucky.
Louisiana.
Maine.
Maryland.
Massachusetts.
Michigan.
Mississippi.
Nevada.
New Hampshire.
New Jersey.
New York.
North Carolina.
North Dakota.
Ohio.
Oklahoma.
Oregon.
Pennsylvania.
South Carolina.
South Dakota.
Tennessee.
Texas.
Virginia.
Washington.
Washington, D.C.
West Virginia.
Wisconsin.
Wyoming.
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How to reduce the tax burden on Social Security benefits
Paying any amount of tax on your Social Security benefits can feel like a big hit, but there are a few ways you might be able to lessen the taxable load.
Lower your income. Because states that tax Social Security benefits usually do so based on your AGI, adjusting the total amount of money that you bring in each year to stay below the thresholds, where possible, could mean paying less in Social Security tax, or even avoiding it altogether.
Delay taking Social Security payments. If you have access to other income in retirement from accounts that aren’t subject to taxation at withdrawal — such as a Roth IRA — consider taking money from those first to delay claiming your Social Security.
Pay taxes over time. Paying throughout the year — rather than in one large lump sum once a year — can help lessen the blow. You can ask the Social Security Administration to withhold estimated federal income taxes from your Social Security check; consult with your state’s department of revenue to see if this is also an option for your state Social Security tax.
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