Last Updated: 2026-03-20
Social Security benefits are taxed differently depending on where you live and how much total income you have. While the federal government can tax up to 85% of your Social Security benefits, most states do NOT tax Social Security at all.
As of 2026, only 9 states tax Social Security benefits — down from 13 states in 2023 as several states eliminated the tax to attract retirees. The remaining 41 states either have no income tax or specifically exempt Social Security from state taxation.
A retiree receiving $30,000 in Social Security and $20,000 from retirement accounts pays $0 state tax in Florida, but could pay $1,200+ in Minnesota or Connecticut on the same income. Over 20 years of retirement, this difference exceeds $24,000.
This guide covers federal Social Security taxation rules, which states tax Social Security benefits (and which don't), best states for Social Security recipients, and strategies to minimize taxes on your benefits.
The federal government can tax up to 85% of your Social Security benefits depending on your "combined income."
The IRS calculates "combined income" (also called "provisional income") to determine if your Social Security is taxable:
Combined Income = Adjusted Gross Income (AGI) + Nontaxable Interest + 50% of Social Security Benefits
Example:
Based on combined income:
| Filing Status | Combined Income | Taxable Portion |
|---|---|---|
| Single | Under $25,000 | 0% (no federal tax on SS) |
| Single | $25,000 - $34,000 | Up to 50% taxable |
| Single | Over $34,000 | Up to 85% taxable |
| Married Filing Jointly | Under $32,000 | 0% (no federal tax on SS) |
| Married Filing Jointly | $32,000 - $44,000 | Up to 50% taxable |
| Married Filing Jointly | Over $44,000 | Up to 85% taxable |
Example: Single filer with $40,000 combined income
The IRS uses a complex formula. "Up to 85%" means:
The math is complicated — most retirees use tax software or IRS Publication 915 worksheet to calculate exact taxable amount.
As of 2026, only 9 states tax Social Security benefits. Each state has different rules, exemptions, and income thresholds.
The vast majority of states do NOT tax Social Security benefits. These 41 states either have no income tax or specifically exempt Social Security from state taxation.
These states have no income tax at all, so Social Security is automatically exempt:
These states have income tax but specifically exempt Social Security benefits from taxation:
Note: Even high-tax states like California (13.3%), New York (10.9%), and New Jersey (10.75%) do NOT tax Social Security benefits.
Ranked by: no tax on Social Security + overall tax burden + cost of living + retiree amenities
Workers (not retirees receiving benefits) pay FICA tax (Federal Insurance Contributions Act) on wages, which funds Social Security and Medicare.
Total FICA: 7.65% employee + 7.65% employer = 15.3% combined
Social Security tax applies only to the first $168,600 of wages in 2026. Income above $168,600 is NOT subject to Social Security tax (but still subject to Medicare tax).
Example: Employee earning $200,000
Self-employed individuals pay both the employee and employer portions:
FICA is a federal tax only. No state charges FICA or additional Social Security tax on wages. States only tax income (wages, pensions, etc.) via state income tax, which is separate from FICA.
If you live in one of the 9 states that tax Social Security, consider relocating to one of the 41 states that don't. A retiree with $30K in SS and $20K in other income could save $500-$2,000/year in state taxes.
Best states to move to: Florida, Texas, Nevada, Arizona, South Carolina, Tennessee, Georgia
Benefits increase 8% per year from Full Retirement Age (67) to age 70. Delaying:
Tax advantage: If you withdraw from retirement accounts at age 67-69 (before taking SS), you may stay under the $32K/$44K thresholds and avoid federal SS taxation later.
If your combined income is close to $25K (single) or $32K (joint), consider:
At age 70½+, you can donate up to $105,000/year (2026) from IRA directly to charity. QCD:
Example: Your RMD is $20K. Instead of withdrawing $20K (increasing combined income), donate $20K via QCD to charity. Your AGI stays lower, potentially avoiding SS taxation.
If moving from a state that taxes SS to one that doesn't, time your move:
Married couples filing separately face a $0 threshold (any combined income makes SS taxable). However, in rare cases where one spouse has very low income and the other has high income, filing separately may reduce overall tax if it allows one spouse to avoid SS taxation. Consult a CPA — this rarely works.
Problem: You retire and are shocked when your tax software shows Social Security is taxable.
Reality: Up to 85% of federal SS benefits are taxable if combined income exceeds $34K (single) or $44K (joint).
Fix: Plan for taxes on SS. If you have other income (pension, retirement accounts), assume 85% of SS is taxable.
Problem: You don't withhold taxes from SS payments and owe $3,000+ at tax time.
Reality: Social Security does NOT automatically withhold taxes. You must request withholding via Form W-4V.
Fix: Request 7%, 10%, 12%, or 22% federal withholding on SS benefits. Most retirees choose 10-12%.
Problem: You're 67, start taking SS, and also withdraw $30K from IRA. Combined income = $47K, making 85% of SS taxable.
Reality: IRA withdrawals count toward combined income, triggering SS taxation.
Fix: Withdraw from Roth accounts (don't count toward combined income) or delay SS to age 70 while drawing down traditional accounts first.
Problem: You live in Minnesota and assume your SS is tax-free like most retirees.
Reality: 9 states still tax SS benefits for some or all retirees.
Fix: Check your state's rules. If your state taxes SS and you're considering moving anyway, relocate to a non-taxing state.
Problem: Both spouses start SS at 62, maximizing early income but minimizing lifetime benefits and increasing taxes.
Reality: Lower-earning spouse starting early may make sense, but higher-earning spouse should delay to 70 for maximum survivor benefit and tax efficiency.
Fix: Coordinate timing. Often optimal: lower earner at 62-67, higher earner at 70.
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Get Matched With a CPA for Your State Taxes →41 states do not tax Social Security benefits. This includes 9 states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming) and 32 states with income tax that specifically exempt Social Security (Alabama, Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia, Wisconsin, and DC). Only 9 states tax Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.
Yes, Social Security can be taxable federally. Up to 85% of your benefits are taxable if your combined income (AGI + nontaxable interest + 50% of SS) exceeds $34,000 (single) or $44,000 (married filing jointly). If combined income is $25,000-$34,000 (single) or $32,000-$44,000 (joint), up to 50% is taxable. If combined income is under $25,000 (single) or $32,000 (joint), Social Security is not taxable federally. The taxable portion is added to your income and taxed at ordinary rates (10-12% for most retirees).
Florida is the best state for retirees on Social Security. It has no income tax (so $0 tax on Social Security and all other retirement income), no estate tax, low property taxes with homestead exemption, warm weather year-round, massive retiree communities (The Villages, Sarasota, Naples, Tampa), excellent healthcare infrastructure, and no state tax on pensions or retirement account withdrawals. Texas and Arizona are also top choices for their zero/low taxes on Social Security and retirement-friendly amenities.
It depends on your combined income (AGI + nontaxable interest + 50% of Social Security). For single filers: 0% taxable if combined income under $25,000, up to 50% taxable if $25,000-$34,000, up to 85% taxable if over $34,000. For married filing jointly: 0% taxable if combined income under $32,000, up to 50% taxable if $32,000-$44,000, up to 85% taxable if over $44,000. The exact calculation is complex (use IRS Publication 915 worksheet or tax software). Most retirees with pensions or retirement account withdrawals have 85% of Social Security taxable.
Social Security does NOT become tax-free at any age. Taxation is based on your combined income, not your age. Even at age 90, if your combined income exceeds $34,000 (single) or $44,000 (joint), up to 85% of your Social Security is federally taxable. There is no age-based exemption from Social Security taxation. However, some states (like Rhode Island) exempt Social Security once you reach full retirement age (67 for those born 1960+), but this is state-specific, not a federal rule.
Yes, you can request federal income tax withholding from Social Security benefits. File IRS Form W-4V (Voluntary Withholding Request) with Social Security Administration. You can choose 7%, 10%, 12%, or 22% withholding. Most retirees choose 10% or 12%. This helps avoid owing a large tax bill in April. You can also make quarterly estimated tax payments (Form 1040-ES) instead of withholding. There is no state withholding option for Social Security — handle state taxes via estimated payments if your state taxes SS.
Delaying Social Security from age 67 (Full Retirement Age) to 70 increases your monthly benefit by 8% per year (24% total increase). Tax benefits: (1) Larger benefit means you may need fewer taxable retirement account withdrawals later, (2) You can draw down traditional IRA/401(k) from 67-69 before starting SS, potentially staying under SS taxation thresholds, (3) Roth conversions at 67-69 (before SS) won't count toward combined income later. Delaying to 70 makes sense for higher earners, those in good health, and those who want to maximize survivor benefits. Consult a financial planner to model your specific situation.
No, California does NOT tax Social Security benefits, even though California has the highest state income tax rate (13.3%). Social Security is fully exempt from California state income tax for all residents. However, California does tax other retirement income (pensions, IRA/401(k) withdrawals, investment income) at rates up to 13.3%. This makes California a mixed bag for retirees — no tax on Social Security, but high tax on other retirement income. Many California retirees move to Nevada or Arizona to avoid the 13.3% tax on non-SS retirement income.
Four states recently eliminated Social Security taxation: Missouri (eliminated 2024), Kansas (eliminated 2024), Nebraska (eliminated 2025), and Iowa (phasing out 2023-2026, fully eliminated by 2026). West Virginia is phasing out SS tax and will fully eliminate it by 2027. These states eliminated the tax to attract retirees and compete with states like Florida and Texas. As of 2026, only 9 states still tax Social Security, down from 13 in 2023. Trend is toward eliminating SS taxation nationwide at the state level.
Strategies to minimize or avoid Social Security taxes: (1) Keep combined income under $25,000 (single) or $32,000 (joint) — withdraw from Roth accounts instead of traditional IRAs, (2) Move to one of the 41 states that don't tax Social Security, (3) Delay Social Security to age 70 and draw down traditional retirement accounts first (lowers combined income later), (4) Use Qualified Charitable Distributions (QCD) from IRA at age 70½+ to satisfy RMDs without increasing combined income, (5) Do Roth conversions before starting Social Security so future withdrawals don't count toward combined income. Consult a tax professional for personalized planning.
Yes, if you're receiving Social Security benefits while still working, your benefits may be taxable if your combined income (wages + AGI + nontaxable interest + 50% of SS) exceeds $25,000 (single) or $32,000 (joint). Work wages count fully toward combined income, so working while receiving SS often triggers taxation. Additionally, if you're under Full Retirement Age (67 for those born 1960+), Social Security may reduce your benefits if earnings exceed $23,400 (2026) — $1 reduction for every $2 earned above limit. Once you reach Full Retirement Age, no earnings reduction applies, but SS benefits may still be taxable based on combined income.
Veterans pay the same Social Security taxes as everyone else — taxation depends on combined income, not veteran status. However, VA disability benefits and VA pensions are NOT taxable federally and do NOT count toward combined income for Social Security taxation purposes. This means: (1) VA disability is tax-free and doesn't make your Social Security taxable, (2) If your only income is Social Security + VA disability, your combined income may stay under thresholds, making SS tax-free. Military retirement pay (pension) IS taxable and does count toward combined income. Some states offer additional veteran tax exemptions on retirement income.