Social Security Tax by State 2026: Which States Tax Your Social Security Benefits?

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 8 states tax Social Security benefits — several states have eliminated the tax in recent years. The remaining 42 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. In the 8 states that tax Social Security, income-based exemptions mean many retirees at this income owe no state tax on the benefits themselves.

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.

Federal Social Security Tax Rules (How the IRS Taxes Benefits)

The federal government can tax up to 85% of your Social Security benefits depending on your "combined income."

What Is 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:

• AGI (retirement account withdrawals, pensions, wages): $30,000
• Nontaxable interest (municipal bonds): $2,000
• Social Security benefits: $24,000
• Combined income: $30,000 + $2,000 + ($24,000 × 50%) = $44,000

How Much of Your Social Security Is Taxable (Federal)

Based on combined income:

Example: Single filer with $40,000 combined income

• Exceeds $34,000 threshold
• Up to 85% of Social Security is taxable
• If receiving $24,000 in SS, up to $20,400 (85%) is included in taxable income
• Taxed at ordinary income rates

Important: "Up to 85%" Explained

The IRS uses a complex formula. "Up to 85%" means:

• If combined income barely exceeds $34,000, only a portion is taxable (not the full 85%)
• As combined income increases, more of your SS becomes taxable, capping at 85%
• Very high earners ($100K+ combined income) typically reach the full 85% taxable

The math is complicated — most retirees use tax software or IRS Publication 915 worksheet to calculate exact taxable amount.

States That Tax Social Security Benefits (2026)

As of 2026, only 8 states tax Social Security benefits. Each state has different rules, exemptions, and income thresholds.

1. Colorado

• Tax on SS: Partial — taxpayers 65+ subtract all federally taxable SS
• Ages 55–64: Subtract all of it at federal AGI up to $75,000 (single) / $95,000 (joint), otherwise up to $20,000 (2025 rules)
• Who pays: Retirees under 55, and those 55–64 with higher income
• Effective rate: 4.4% flat rate on taxable portion

2. Connecticut

• Tax on SS: Partial — exemptions based on income
• Exemption: Full exemption if AGI under $75,000 (single) or $100,000 (joint)
• Who pays: Only high-income retirees
• Effective rate: 2-6.99% on taxable portion (graduated)

3. Minnesota

• Tax on SS: Partial — follows federal taxation but allows subtraction
• Exemption: Can subtract SS if income below $86,410 (single) or $110,780 (joint) in 2026
• Who pays: High-income retirees exceeding thresholds
• Effective rate: 5.35-9.85% on taxable portion

4. Montana

• Tax on SS: Partial — follows federal taxation but allows deduction
• Exemption: Residents 65+ get a flat subtraction ($5,660 for 2025; 2026 amount not yet published)
• Who pays: Most retirees with taxable SS exceeding the subtraction
• Effective rate: 4.7%-5.65% (2026) on taxable portion

5. New Mexico

• Tax on SS: Partial — exemptions based on age and income
• Exemption: Full exemption if income under $100,000 (single) or $150,000 (joint/head of household)
• Who pays: High-income retirees
• Effective rate: 1.5%-5.9% on taxable portion

6. Rhode Island

• Tax on SS: Partial — full exemption for most retirees
• Exemption: Full exemption if at full retirement age and federal AGI is below $107,000 (single) or $133,500 (joint) for 2025
• Who pays: Those under full retirement age or above the AGI limit
• Effective rate: 3.75-5.99% on taxable portion

7. Utah

• Tax on SS: Partial — tax credit offsets tax for many retirees
• Credit: Nonrefundable credit based on income (phases out above certain thresholds)
• Who pays: Higher-income retirees exceeding credit phaseout
• Effective rate: 4.45% flat rate (but credit reduces effective rate for many)

8. Vermont

• Tax on SS: Partial — exemptions based on income
• Exemption: Full exemption if AGI up to $55,000 (single) or $70,000 (joint) in 2025, partial exemption up to $65,000/$80,000
• Who pays: Higher-income retirees
• Effective rate: 3.35-8.75% on taxable portion

9. West Virginia

• Tax on SS: None from tax year 2026 — phase-out reached 100% (35% exempt in 2024, 65% in 2025)
• 2026 status: Fully exempt
• Who pays: No one
• Note: West Virginia no longer taxes Social Security

States That Recently Eliminated Social Security Tax

• Missouri: Eliminated 2024
• Kansas: Eliminated 2024
• Nebraska: Eliminated 2024
• West Virginia: 100% exempt from tax year 2026

States with No Tax on Social Security (42 States)

The vast majority of states do NOT tax Social Security benefits. These 42 states either have no income tax or specifically exempt Social Security from state taxation.

States with No Income Tax (9 States)

These states have no income tax at all, so Social Security is automatically exempt:

1. Alaska
2. Florida — most popular state for retirees
3. Nevada
4. New Hampshire — no tax on wages or SS; the former interest and dividends tax was repealed effective January 1, 2025
5. South Dakota
6. Tennessee
7. Texas — second most popular for retirees
8. Washington
9. Wyoming

States with Income Tax BUT Exempt Social Security (33 States)

These states have income tax but specifically exempt Social Security benefits from taxation:

• Alabama
• Arizona
• Arkansas
• California
• Delaware
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas (as of 2024)
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Missouri (as of 2024)
• Nebraska (as of 2024)
• New Jersey
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• South Carolina
• Virginia
• West Virginia (as of 2026)
• Wisconsin
• District of Columbia

Note: Even high-tax states like California (13.3%), New York (10.9%), and New Jersey (10.75%) do NOT tax Social Security benefits.

States Friendly to Social Security Recipients (2026)

Ten States Popular With Retirees on Social Security

Editorial selection (not a data ranking): no tax on Social Security, overall tax burden, cost of living, retiree amenities

1. Florida

• SS tax: $0 (no income tax)
• Overall tax burden: Low (no estate tax, low property tax in many counties)
• Why listed: Warm weather, large retiree community, no state tax on any retirement income, homestead exemption saves property taxes
• Popular cities: Tampa, Sarasota, Naples, The Villages
• Cons: Hurricane risk, high homeowners insurance

2. Texas

• SS tax: $0 (no income tax)
• Overall tax burden: Moderate (no income/estate tax, but a 1.40% effective property tax rate per Tax Foundation 2026)
• Why it ranks: Low cost of living (outside Austin), large retiree communities, diverse climates
• Popular cities: San Antonio, Austin, Dallas, Houston suburbs
• Cons: High property taxes, extreme heat

3. Nevada

• SS tax: $0 (no income tax)
• Overall tax burden: Low (no income/estate tax)
• Why it ranks: Proximity to California without CA taxes, dry climate, growing retiree communities
• Popular cities: Las Vegas, Henderson, Reno
• Cons: Extreme heat, limited healthcare outside Vegas/Reno

4. Arizona

• SS tax: $0 (fully exempt)
• Overall tax burden: Low (2.5% flat income tax on other income)
• Why it ranks: Warm winters, massive retiree communities, low taxes on pensions/retirement accounts too
• Popular cities: Phoenix, Scottsdale, Tucson, Sedona
• Cons: Extreme summer heat (110°F+)

5. South Carolina

• SS tax: $0 (fully exempt)
• Overall tax burden: Low-moderate (5% top rate on other income, but lower for retirees 65+)
• Why it ranks: Age 65+ deduction ($15,000), mild winters, affordable coastal living
• Popular cities: Myrtle Beach, Charleston, Greenville, Hilton Head
• Cons: Hurricane risk on coast

6. Alabama

• SS tax: $0 (fully exempt)
• Overall tax burden: Low (2-5% income tax; defined-benefit pension income is exempt, plus an age-65 retirement-income exclusion)
• Why it ranks: Very low cost of living, low property taxes (0.37% effective rate per Tax Foundation 2026), Gulf Coast beaches
• Popular cities: Birmingham, Huntsville, Mobile, Gulf Shores
• Cons: Limited urban amenities

7. Tennessee

• SS tax: $0 (no income tax)
• Overall tax burden: Low (no income tax, but a high combined sales tax)
• Why it ranks: Nashville/Memphis culture, low cost of living, mild winters
• Popular cities: Nashville, Knoxville, Chattanooga
• Cons: High sales tax

8. Wyoming

• SS tax: $0 (no income tax)
• Overall tax burden: Very low (no income/estate tax, low property tax)
• Why it ranks: Beautiful scenery, outdoor lifestyle, very low taxes
• Popular cities: Jackson, Cheyenne, Casper
• Cons: Harsh winters, remote, limited healthcare

9. Georgia

• SS tax: $0 (fully exempt)
• Overall tax burden: Moderate (4.99% flat tax, but age 65+ retirement exclusion up to $65,000)
• Why it ranks: Atlanta metro amenities, mild winters, age 65+ get $65K retirement income exclusion
• Popular cities: Atlanta suburbs, Savannah, Athens
• Cons: Humid summers

10. Mississippi

• SS tax: $0 (fully exempt)
• Overall tax burden: Low (low income tax, very low cost of living)
• Why it ranks: Low cost of living, Gulf Coast beaches, low property taxes
• Popular cities: Biloxi, Gulfport, Jackson
• Cons: Limited healthcare, lower quality of life metrics

Worst States for Social Security Recipients

1. Vermont: Taxes SS + high income tax (8.75%) + high property tax
2. Minnesota: Taxes SS for high earners + 9.85% top income tax rate
3. Connecticut: Taxes SS for high earners + 6.99% income tax + high cost of living
4. Rhode Island: Taxes SS for early retirees + 5.99% income tax + high cost of living

FICA Tax: Social Security Tax for Workers (Not Retirees)

Workers (not retirees receiving benefits) pay FICA tax (Federal Insurance Contributions Act) on wages, which funds Social Security and Medicare.

FICA Tax Breakdown (2026)

• Social Security tax: 6.2% on wages up to $184,500 (employee) + 6.2% (employer) = 12.4% total
• Medicare tax: 1.45% on all wages (employee) + 1.45% (employer) = 2.9% total
• Additional Medicare Tax: 0.9% on wages over $200,000 (single) or $250,000 (married) — employee only, no employer match

Total FICA: 7.65% employee + 7.65% employer = 15.3% combined

FICA Tax Cap (Wage Base Limit)

Social Security tax applies only to the first $184,500 of wages in 2026. Income above $184,500 is NOT subject to Social Security tax (but still subject to Medicare tax).

Example: Employee earning $200,000

• Social Security tax: $184,500 × 6.2% = $11,439.00
• Medicare tax: $200,000 × 1.45% = $2,900
• Additional Medicare tax: ($200,000 - $200,000) × 0.9% = $0 (right at threshold)
• Total employee FICA: $14,339.00

Self-Employed FICA (Self-Employment Tax)

Self-employed individuals pay both the employee and employer portions:

• Self-employment tax: 15.3% on 92.35% of net self-employment income (12.4% SS + 2.9% Medicare)
• Deduction: Can deduct 50% of SE tax from income
• Cap: Social Security portion capped at $184,500 of net earnings

State-Level FICA? (No)

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.

Strategies to Minimize Taxes on Social Security Benefits

Strategy 1: Move to a State That Doesn't Tax Social Security

If you live in one of the 8 states that tax Social Security, a move to one of the 42 states that don't tax SS would remove that state-level tax, though many residents of the 8 taxing states owe little or none because of income-based exemptions.

Examples of states that don't tax Social Security: Florida, Texas, Nevada, Arizona, South Carolina, Tennessee, Georgia

Strategy 2: Delay Social Security Until Age 70

Benefits increase 8% per year from Full Retirement Age (67) to age 70. Delaying:

• Increases monthly benefit by 24% (3 years × 8%)
• May allow you to draw down retirement accounts first (potentially at lower tax brackets)
• Larger benefit at 70 means less need to withdraw from taxable accounts later

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.

Strategy 3: Manage Combined Income to Stay Under Thresholds

If your combined income is close to $25K (single) or $32K (joint), consider:

• Roth conversions before taking SS: Convert traditional IRA to Roth while working (pay tax now), so Roth withdrawals in retirement don't count toward combined income
• Withdraw from Roth accounts first: Roth IRA/401(k) withdrawals don't count toward combined income
• Delay retirement account withdrawals: If you can live on savings/Roth, delay traditional IRA/401(k) withdrawals until RMDs are required (age 73 if born 1951-1959; age 75 if born 1960 or later)

Strategy 4: Use Qualified Charitable Distributions (QCD)

At age 70½+, you can donate up to $111,000/year (2026) from IRA directly to charity. QCD:

• Counts toward Required Minimum Distribution (RMD)
• Does NOT count as income (doesn't increase combined income for SS taxation)
• Reduces AGI, potentially avoiding SS taxation

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.

Strategy 5: Coordinate State Residency with SS Start Date

If moving from a state that taxes SS to one that doesn't, time your move:

• Establish residency (driver's license, voter registration, domicile) in new state BEFORE starting SS benefits
• File part-year returns showing you received SS while a resident of the non-taxing state

Strategy 6: File Separately (In Rare Cases)

Married couples filing separately face a $0 threshold if they lived together at any time during the year (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.

Common Social Security Tax Questions & Mistakes

Mistake 1: Assuming Social Security Is Always Tax-Free

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.

Mistake 2: Not Withholding Taxes from Social Security

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%.

Mistake 3: Taking Early Retirement Account Withdrawals and Making SS Taxable

Problem: You're 67, start taking $24,000 a year in SS, and also withdraw $30K from an IRA (single filer). Combined income = $30,000 + $12,000 (half of SS) = $42,000, which makes about $11,300 (roughly 47%) of your SS taxable. 85% is only the ceiling, reached at higher incomes.

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.

Mistake 4: Forgetting About State Taxation

Problem: You live in Minnesota and assume your SS is tax-free like most retirees.

Reality: 8 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.

Mistake 5: Not Coordinating SS with Spouse

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.