41 States Where Social Security Is Tax-Free

There are multiple methods to boost your Social Security benefits: Ensure you have worked in qualifying jobs for a minimum of 35 years. Hold off on claiming your benefits until after reaching your full retirement age.

Once you have completely retired and started receiving Social Security benefits, however, your benefit amount will only go up annually. cost-of-living adjustments (COLAs) However, you can boost the amount of money you retain. How? By residing in a state where your Social Security benefits aren’t taxed.

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Where your Social Security payments come from are taxed

You might be required to pay state taxes on your Social Security benefits starting in 2025 if you reside in one of these nine states:

  • Colorado
  • Connecticut
  • Minnesota
  • Montana
  • New Mexico
  • Rhode Island
  • Utah
  • Vermont
  • West Virginia

The level of income tax imposed on Social Security benefits differs from one state to another. In Colorado, Social Security benefits are taxed solely for those below the age of 65.

The previous version of this list was more extensive. Recently, Kansas stopped imposing state taxes on Social Security benefits. In addition, the list is expected to become shorter going forward. West Virginia is gradually eliminating its state tax on Social Security, which will be completely phased out by 2026.

States where no income taxes are levied

In eight states, no income taxes apply whatsoever, including on Social Security benefits. These states include:

  • Alaska
  • Florida
  • Nevada
  • South Dakota
  • Tennessee
  • Texas
  • Washington
  • Wyoming

Remember that you might still be responsible for paying sales, property, and/or excise taxes in those states. Since they do not levy income taxes, these states need alternative methods to generate funds required for their functioning.

States imposing income taxes but exempting Social Security from taxation include:

An additional 33 states impose income taxes yet do not levy taxes on Social Security benefits. The current roster of these states includes:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Delaware
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kansas
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Missouri
  • Nebraska
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • North Dakota
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • Virginia
  • Wisconsin

Moreover, Washington, D.C., does not impose taxes on Social Security benefits, though it does feature an income tax.

Uncle Sam doesn't care where you live

While 41 states plus Washington, D.C. don't require you to pay state taxes on your Social Security benefits, you could have to pay federal taxes on your benefits, regardless of where you live. It's still possible that you won't owe the IRS anything related to Social Security, though.

To find out whether you owe federal taxes on Social Security, start by calculating your combined income. This figure includes half of your Social Security benefits (such as retirement). disability , as well as benefits for survivors, but not Supplemental Security Income payments, along with all additional income sources such as wages, pensions, capital gains, dividends, and interest.

After calculating your total income, refer to the chart to see whether you will be subject to federal taxes on your Social Security benefits, and if yes, what portion of those benefits might be taxed.

Federal Tax Filing Type Combined Income Portion of Social Security Benefits Subject to taxation
Single Less than $25,000 0%
$25,000 to $34,000 Up to 50%
Over $34,000 Up to 85%
Married Filing Separately Less than $25,000 0%
$25,000 to $34,000 Up to 50%
Over $34,000 Up to 85%
Married Filing Jointly Less than $32,000 0%
$32,000 to $44,000 Up to 50%
Over $44,000 Up to 85%

Data source: Social Security Administration. The table was created by the author.

If you prefer simplicity, you may ask for automatic withholding of all federal income taxes directly from your monthly Social Security benefits. All you have to do is fill out the necessary form. Form W-4V Submit a (Voluntary Withholding Request) form to your nearest Social Security office.

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Check out the "Social Security Secrets" »

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