Which States Tax Social Security? Complete 2025 List
In 2025, 10 states tax Social Security benefits at the state level, but most of those states offer exemptions or income thresholds that reduce or eliminate the tax for many retirees. The other 40 states (plus D.C.) do not tax Social Security benefits at all. However, even in a no-tax state, you still owe federal income tax on a portion of your benefits if your “combined income” (adjusted gross income + nontaxable interest + half of your Social Security benefits) exceeds $25,000 for single filers or $32,000 for joint filers. Moving to a state that doesn’t tax Social Security does not erase federal tax – a fact many retirees overlook. This list directly affects whether you need to adjust your withdrawal strategy, consider relocating, or update your state tax withholding to avoid a surprise bill in April.
Federal Taxation First – The Starting Point
Before looking at state rules, understand the federal trigger:
- Single filer: If combined income is between $25,000 and $34,000, up to 50% of benefits are taxable. Over $34,000, up to 85% are taxable.
- Joint filers: Between $32,000 and $44,000 → up to 50% taxable. Over $44,000 → up to 85% taxable.
Use IRS Worksheet 1 (from the instructions for Form 1040 or 1040-SR) to calculate your exact amount. A common mistake: ignoring nontaxable municipal bond interest when calculating combined income – it counts toward the threshold.
Practical implication: If your combined income is anywhere near $25,000 (single) or $32,000 (joint), a single withdrawal from a traditional IRA could push you into the taxable zone. Avoid this by splitting the withdrawal across two tax years or using a Roth distribution instead. Know your number before you make a move.
Which States Tax Social Security Benefits in 2025?
| State | How Social Security Is Taxed (2025) |
|---|---|
| Colorado | Taxable, but you can deduct up to $24,000 of retirement income (including Social Security) per person. Most filers pay nothing. Deduction phases out for higher incomes. |
| Connecticut | Taxable unless your federal adjusted gross income (AGI) is below $75,000 (single) or $100,000 (joint). Above those limits, the full benefit is taxable at the state level. |
| Kansas | Fully taxable, no special exemption. However, you can subtract income that is below the federal taxable amount – effectively only state tax on the federally taxable portion. |
| Minnesota | Taxable, but you can subtract benefits if your federal AGI is under certain limits (2025: under $78,000 single, $100,000 joint). Partial subtraction for incomes up to about $105,000 single, $130,000 joint. |
| Missouri | Taxable only if your federal adjusted gross income exceeds $85,000 (single) or $100,000 (joint). Below those thresholds, benefits are exempt. |
| Montana | Taxable, but you may subtract a portion based on your adjusted gross income. |
Full exemption for AGI below $25,000 (single) or $32,000 (joint). Partial exemption for higher incomes. |
| Nebraska | Fully taxable, but you can claim a non-refundable credit for Social Security taxes paid. For 2025, the credit phases out above $43,000 (single) or $58,000 (joint) of federal AGI. |
| New Mexico | Taxable, but you can subtract up to $10,000 (single) or $20,000 (joint) of Social Security income if you are 65 or older. Above those amounts, the full benefit is taxed. |
| Rhode Island | Taxable unless your federal AGI is below $81,100 (single) or $101,130 (joint) for 2025. Above those thresholds, all Social Security is taxable. |
| Utah | Taxable, but you can claim a non-refundable retirement credit that often zeroes out the tax for low to middle incomes. For 2025, the credit is 6% of up to $15,000 (single) or $30,000 (joint) of retirement income. |
Key point: Even in these 10 states, most retirees with moderate income will owe little or no state tax on their Social Security benefits because of the exemptions, deductions, and credits listed above.
States That Do NOT Tax Social Security Benefits
The following 40 states and the District of Columbia do not tax Social Security benefits at all in 2025:
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, plus Washington D.C.
Counter-intuitive note: Several states on this “no tax” list still tax other retirement income (pensions, IRA distributions). Only Social Security benefits are exempt. Also, if you live in a state that taxes Social Security but file a part-year return because you moved mid-year, you may still owe tax for the months you lived there.
What This List Means for Your Retirement Plan
Knowing which states tax benefits is only half the battle. Here’s how this information changes your next move:
- If you live in a taxing state, identify your state’s specific exemption threshold. For example, a Missouri resident with $90,000 in federal AGI (single) would owe state tax, but a resident with $80,000 would not. That $10,000 difference could be managed by delaying a pension lump sum or drawing from a Roth.
- If you are considering a move, don’t base the decision solely on Social Security taxation. A state like Oregon (no SS tax) taxes pension income aggressively, while a state like Colorado (technically taxes SS) offers a generous deduction that covers most moderate-income households. The real trade-off: total state tax burden on all retirement income, not just Social Security.
Mismatch to watch: Even if your state does not tax Social Security, you may still need to report the federally taxable amount on your state return – you just won’t pay state tax on it. Some taxpayers mistakenly stop reporting benefits entirely, which can trigger a state audit. Always fill out the Social Security line or subtraction on your state form, even if it’s zeroed out.
Expert Tips to Minimize State and Federal Taxes on Your Benefits
Tip 1: Time Your Withdrawals to Stay Below the Federal Thresholds
Actionable step: Before taking a large IRA distribution in a given year, estimate your combined income. If you’re near $25,000 (single) or $32,000 (joint), consider splitting the withdrawal over two tax years to avoid pushing your Social Security into the taxable range. For example, if you are single and have $24,000 in combined income without withdrawals, a $10,000 IRA distribution would push you to $34,000 – the 85% threshold. Splitting it as $5,000 in each year keeps you near the 50% zone.
Common mistake to avoid: Thinking that only traditional IRA withdrawals count. Roth IRA distributions are not counted in combined income, but many retirees mistakenly include them anyway.
Tip 2: Use the Colorado Deduction (if you live there) Before It’s Too Late
Actionable step: If you’re a Colorado resident, complete the “Retirement Income Deduction” line on the state return. In 2025 you can reduce up to $24,000 of gross retirement income per person. If your total benefits are $18,000 and you have no other retirement income, you’ll owe zero state tax.
Common mistake to avoid: Assuming the deduction applies automatically. You must itemize your retirement income sources on the state schedule. Also, the deduction phases out once your federal AGI exceeds about $50,000 (single) or $60,000 (joint) – check the latest Colorado form DR 0104AD. A concrete verification step: open your 2024 Colorado return and see if line 10 (the deduction) was filled. If it was blank, you may have missed it.
Tip 3: Recalculate After a Lump-Sum Payment from a Prior Year
Actionable step: If you received a lump-sum Social Security payment in 2025 that covers earlier years, complete IRS Worksheets 2 and 3 (from the Social Security Benefits booklet) to see if you can elect to use prior-year income to lower the taxable portion. For instance, if your 2024 income was low but your 2025 income is high, the special election can keep the lump sum taxed at the lower 2024 thresholds.
Common mistake to avoid: Forgetting that a lump-sum for a prior year can be spread back using the “special election” method (using prior-year thresholds). If you don’t elect, the entire amount is treated as 2025 income, which could push you into the 85% taxable zone.
Quick Self-Check: Is Your Social Security Taxable at the State Level?
Run through these five checks to determine if you need to worry about state tax:
1. Does my state appear in the “taxing” list above?
- Yes → continue. No → stop; you owe no state tax on benefits.
2. Does a specific income exemption or deduction apply to me?
- Look up your state’s AGI threshold. If your income is below that number, you likely owe nothing.
3. Am I filing jointly versus single?
- Many states have higher income limits for joint filers. If you’re married, always check the joint column.
4. Do I have other retirement income (pension, IRA, 401k) that affects the state calculation?
- Some states (e.g., Colorado, Utah) allow deductions that cover all retirement income, not just Social Security. But others (e.g., Rhode Island) use federal AGI, which includes all income.
5. Have I checked my state’s most recent tax form instructions for 2025?
- Rules can change annually. Use your state’s department of revenue website; do not rely on third-party summaries from prior years.
How to Verify Your Own State’s Rules
Because state tax codes change periodically, follow these steps to confirm your exact obligation:
1. Visit your state’s revenue department website and search for “Social Security benefits” or “retirement income deduction.”
2. Download the current year’s state tax return instructions (Form 1040 equivalent). Look for a line about Social Security or retirement income subtraction. For example, in Minnesota, the subtraction is on line 10 of Form M1, Schedule M1NR. If that line is not populated, you may be taxable.
3. Check the SSA’s publication “Social Security and Taxes” (available at ssa.gov) – it lists the high-level state rules, but always cross-check with your state.
4. Consult a tax professional if your income is near any threshold or you have multiple retirement income sources. A CPA can run a “what-if” for a move or a lump-sum choice.
Remember: The federal tax on your benefits is calculated separately. Even if your state doesn’t tax Social Security, you must still report your federal taxable amount on your state return – you just won’t owe state tax on it.
Disclaimer: This article provides general tax information and does not constitute financial, legal, or tax advice. State tax laws are subject to change. Always verify current rules with your state tax authority or a qualified professional.
Mike Spencer is the lead researcher at ssfaq.com, specializing in Social Security benefits, Medicare enrollment, and retirement planning. With years of experience analyzing SSA and CMS policy, he translates complex government regulations into clear, actionable guidance for retirees, near-retirees, and disabled workers. Every article is researched using official SSA.gov, Medicare.gov, and IRS.gov sources.