If you live in, or are thinking of moving to, one of the few states that tax Social Security, it is worth knowing exactly where the line falls. The good news: the list keeps getting shorter, and most of the remaining states exempt lower and middle incomes.
In 2026, eight states tax at least some Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. The other 42 states and Washington, D.C. do not.
Why you may see different counts online
Search this question and you will find lists of six, eight or nine states. The difference comes from timing. West Virginia finished phasing out its tax on Social Security in 2026, so older articles still include it. Kansas, Missouri and Nebraska also dropped their taxes in the last few years. Some sites have not caught up, and at least one popular list we checked still showed West Virginia while leaving out states that do tax benefits.
The list below is based on each state’s 2026 rules as reported by Kiplinger and state tax departments.
The 8 states and their 2026 rules
| State | Who pays state tax on Social Security | Income limits and exemptions |
| Colorado | Mainly residents 55 to 64 with higher incomes | Residents 65 and older can deduct all federally taxed Social Security. Residents 55 to 64 can deduct it all if adjusted gross income is $75,000 or less (single) or $95,000 or less (married filing jointly); above that, the deduction is limited to $20,000 |
| Connecticut | Higher-income retirees | No tax if AGI is under $75,000 (single) or $100,000 (married filing jointly). Above that, no more than 25% of benefits is taxable |
| Minnesota | Higher-income retirees | Fully exempt below $84,490 (single or head of household) or $108,320 (married filing jointly). The subtraction shrinks by 10% for each $4,000 of income above the limit |
| Montana | Most residents with taxable benefits | Largely follows federal rules on taxable Social Security, with a $5,500 subtraction for residents 65 and older |
| New Mexico | Higher-income retirees | No tax on benefits for income up to $100,000 (single) or $150,000 (married filing jointly) |
| Rhode Island | Higher-income retirees, or those below full retirement age | Exempt for those at full retirement age with AGI below $107,000 (single) or $133,750 (married filing jointly) |
| Utah | Retirees above the credit limits | Benefits are included in income, but a Social Security benefits credit offsets the tax for many retirees; the credit phases out at higher incomes |
| Vermont | Higher-income retirees | Fully exempt with AGI of $65,000 or less (single) or $80,000 or less (married filing jointly). Partial exemption up to $79,999 (single) or $94,999 (joint) |
Limits are for tax year 2026 as reported. Many states adjust them each year, so confirm with your state revenue department before you file or move.
What it means in practice
For most retirees in these states, the real impact is small or zero. A married couple in Connecticut with $90,000 of AGI pays no state tax on their benefits. A single retiree in New Mexico with $70,000 of income pays none either. The tax mainly reaches retirees with sizable pensions, IRA withdrawals or investment income on top of Social Security.
Here is a rough example for a higher-income couple. Say a married couple in Connecticut has adjusted gross income of $120,000, including $48,000 of Social Security. Because they are above the $100,000 limit, up to 25% of their benefits, or $12,000, can be included in Connecticut taxable income. Connecticut’s rates run from 2% to 6.99%, so at a rate of around 5%, the state tax on their benefits would be roughly $600 a year. That is real money, but modest compared with other costs of living in the state.
In Minnesota, the phase-out is gradual. A single filer with income $8,000 above the $84,490 limit would lose 20% of the subtraction, so only a fraction of their benefits would be taxed.
Colorado is a special case. Its rule mainly affects people who claim Social Security early, between 62 and 64, and have higher incomes. Once you turn 65, federally taxed benefits are fully deductible.
Utah and Montana affect the most middle-income retirees, because their exemptions are narrower.
First, the federal rules
State tax on Social Security usually builds on the federal calculation, so it helps to know how that works. The IRS uses combined income, which is your adjusted gross income plus tax-exempt interest plus half of your Social Security benefits.
| Filing status | Up to 50% of benefits taxable if combined income is | Up to 85% taxable if combined income is above |
| Single | $25,000 to $34,000 | $34,000 |
| Married filing jointly | $32,000 to $44,000 | $44,000 |
These thresholds have never been adjusted for inflation, so a growing share of retirees owe federal tax on part of their benefits. The new federal deduction of up to $6,000 per person 65 and older, available for 2025 through 2028, reduces taxable income for many retirees but does not change how much of your Social Security counts as taxable.
States with no income tax at all
Nine states have no broad income tax on wages and retirement income, so Social Security, pensions and IRA withdrawals are all untaxed at the state level: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Washington does tax certain large capital gains, but that does not affect typical retirement income.
Should Social Security taxes decide where you retire?
Rarely on their own. Consider three points before moving for this reason:
- Other retirement income may matter more. A state that exempts Social Security may still tax your pension and IRA withdrawals in full, while a state that taxes a sliver of Social Security may exempt a large part of your pension. See our 50-state table of how states tax pensions and retirement accounts.
- Property and sales taxes add up. States without an income tax often lean on higher property or sales taxes.
- Everyday costs usually dominate. Housing, home insurance and health care costs differ far more between states than Social Security taxes do. Our cost of retirement by state guide compares them.
A quick way to compare two states is to add up your expected income tax, property tax and sales tax in each, then put that next to the estimated monthly cost of living.
If you live in one of the 8 states
- Check whether you actually owe anything. Most retirees fall under the exemption limits.
- Watch income spikes. A large IRA withdrawal, Roth conversion or home sale in a single year can push you over a state limit, just as it can with federal taxes.
- Look for other breaks. States that tax Social Security often have pension exclusions, retirement income credits or senior property tax relief.
- Adjust withholding. You can usually have state tax withheld from IRA withdrawals and pensions to avoid a bill in April.
If you are in your 40s or 50s and choosing where to retire
State tax rules change often, and the trend for Social Security has been steadily toward exemption. It makes sense to weigh stable factors, such as housing costs, climate and being near family, more heavily than a tax rule that could change before you retire.
Frequently asked questions
Which states tax Social Security in 2026? Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.
Does West Virginia tax Social Security in 2026? No. West Virginia completed its phase-out, and benefits are fully exempt starting with the 2026 tax year.
Does California tax Social Security? No. California does not tax Social Security benefits, though it does tax pensions and IRA withdrawals.
Do I pay state tax on Social Security if I move out of a taxing state? Generally no. States tax the income of their residents. Once you are a resident of a state that does not tax Social Security, those benefits are not taxed by your former state.
Sources
- Kiplinger, “States That Tax Social Security Benefits” (updated August 2026)
- Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont departments of revenue and taxation
- West Virginia State Tax Department, Social Security phase-out
- Internal Revenue Service, Publication 915; enhanced deduction for seniors
State rules and income limits change often. Confirm with your state tax agency. This article is general information, not tax advice.
