States That Don't Tax Social Security
Most states leave Social Security benefits untaxed. The useful analysis is whether the remaining eight states would include any federally taxable benefits after their income, age, subtraction, exemption, and credit rules.
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The 2026 Answer: Eight States Can Include Some Benefits
The current comparison lists eight states that can include at least some federally taxable Social Security benefits in a resident's state calculation. The other 43 states and jurisdictions either have no broad individual income tax or remove Social Security from the state calculation.
| State | 2026 relief mechanism | Question to model |
|---|---|---|
| Colorado | Age- and income-dependent subtraction | Would the household qualify after income, age, filing-status, and credit rules? |
| Connecticut | Income-dependent exemption or adjustment | Would the household qualify after income, age, filing-status, and credit rules? |
| Minnesota | Income-dependent subtraction | Would the household qualify after income, age, filing-status, and credit rules? |
| Montana | Federal taxable amount included; age-65 subtraction may apply | Would the household qualify after income, age, filing-status, and credit rules? |
| New Mexico | Income-dependent exemption | Would the household qualify after income, age, filing-status, and credit rules? |
| Rhode Island | Age- and income-dependent modification | Would the household qualify after income, age, filing-status, and credit rules? |
| Utah | Income-tested Social Security credit | Would the household qualify after income, age, filing-status, and credit rules? |
| Vermont | Income-dependent exemption | Would the household qualify after income, age, filing-status, and credit rules? |
Do not read “taxes Social Security” as “every retiree pays.”
Each of the eight states offers some form of relief. The actual result depends on the filing year, state definition, household income, age, filing status, and other retirement income.
The States That Do Not Tax Social Security
If a jurisdiction appears below, the current table does not classify it as taxing Social Security benefits for 2026. This says nothing by itself about pensions, IRA or 401(k) withdrawals, wages, business income, capital gains, or property taxes.
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Recent Repeals Make Old Lists Wrong
Missouri, Nebraska, and Kansas removed their Social Security taxes beginning in 2024. West Virginia completed its phased repeal in 2026. A list built for an earlier tax year can therefore overstate the number of taxing states.
A repeal for Social Security does not automatically create the same treatment for a pension, IRA distribution, 401(k) withdrawal, or Roth conversion. Compare those streams separately in the retirement taxes by state table.
Verify the year
Use the return, instructions, and law for the tax year being filed, not the date an article was published.
Verify the mechanism
A subtraction, deduction, exemption, and credit can react differently to income and filing status.
Verify the benefit
Social Security, SSI, railroad retirement, pensions, and survivor benefits are not interchangeable labels.
Verify the household
A spouse's income or a conversion can change eligibility even when the benefit itself did not change.
Federal Tax and State Tax Are Separate Calculations
Federal taxable benefits are calculated under federal rules. A state return often starts from federal adjusted gross income and then applies its own subtraction, deduction, exemption, or credit. A benefit can therefore be partly taxable federally and fully relieved by the state.
| Layer | Inputs | Planning mistake |
|---|---|---|
| Federal benefit calculation | Social Security plus other income and filing status | Assuming the state list changes federal taxable benefits |
| State starting point | Federal adjusted gross income and state additions | Looking only at the benefit statement |
| State relief | Income, age, filing status, benefit type, phaseout, or credit rules | Assuming every resident of a taxing state pays |
| Household projection | Pension, withdrawals, wages, investment income, conversions, deductions | Modeling each transaction in isolation |
In an income-tested state, a Roth conversion, large capital gain, required distribution, pension start, or return to work can reduce or eliminate state relief. The federal and state marginal effect should be projected together.
Federal source: IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits.
A Better State-Retirement Decision Worksheet
Use this page as a screening tool, then build a household projection for the states you are seriously considering.
1. Inventory income
Social Security, pension, IRA and 401(k), Roth distributions, wages, self-employment, rent, dividends, interest, and gains.
2. Add timing
Benefit start dates, required distributions, conversions, asset sales, part-time work, and a possible move year.
3. Apply state rules
Model each stream under the filing-year law, including age, income, filing-status, and credit limits.
4. Add non-income taxes
Property tax, homestead and senior relief, sales tax, estate or inheritance tax, and local tax.
5. Test domicile timing
Map the move date, old-state ties, new-state facts, withholding, and part-year returns.
6. Compare after-tax cash
Use spendable household cash and total cost of living, not just one exemption.
Social Security State Tax FAQ
How many states tax Social Security benefits in 2026?
Eight states can include at least some federally taxable Social Security benefits in their 2026 state calculation: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Each offers a subtraction, exemption, deduction, or credit that can reduce or eliminate the state tax for qualifying households.
Did West Virginia stop taxing Social Security?
The current comparison treats Social Security as fully exempt in West Virginia beginning with tax year 2026 after the phaseout. Confirm the filing-year modification on the state return.
Does a state exemption change federal tax?
No. The federal calculation and the state subtraction, exemption, deduction, or credit are separate steps. A benefit can be included in federal adjusted gross income and then receive state relief.
Can a Roth conversion change the state exemption?
It can in states whose Social Security relief depends on income. Model the conversion with pensions, required distributions, wages, investment income, and filing status before executing it.
Should I move to a state that exempts Social Security?
Compare the tax on all household income and the total cost of living. Social Security may be exempt while pensions, retirement-account withdrawals, wages, property, or estates receive less favorable treatment.
Coordinating Social Security with retirement withdrawals?
We can model the federal and state interaction before a Roth conversion, required distribution, benefit start, or interstate move.
Tax planning slots are limited before year-end.
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