For the 2026 tax year, 42 states do not tax Social Security benefits. That leaves eight states that still tax them in some form, and every one of those eight offers an income-based exemption or credit that eliminates the tax for most retirees. Below is where each state lands, and what the thresholds look like in the states that haven’t gone all the way to a full exemption.
Nine States With No Income Tax at All
The simplest place to avoid tax on Social Security is a state that doesn’t tax personal income in the first place. Nine states fit that description: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. None of them levy a broad-based personal income tax, so Social Security, pensions, 401(k) withdrawals, and IRA distributions all go untouched at the state level. These states rely on sales taxes, property taxes, or severance taxes on natural resources instead.
Two of these states carry small asterisks. New Hampshire used to tax interest and dividends, but that tax was fully repealed on January 1, 2025, ahead of its originally scheduled 2026 elimination.1NH Department of Revenue Administration. Repeal of NH Interest and Dividends Tax Now in Effect Washington taxes capital gains on high earners but does not tax wages, Social Security, or other retirement income.
Thirty-Three States That Fully Exempt Social Security
The other 33 states in the no-tax group do have a personal income tax, but they specifically subtract Social Security benefits out of the state taxable income calculation:
Alabama, Arizona, Arkansas, California, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia, West Virginia, and Wisconsin.
Several of these exemptions are new. Kansas removed its income-based cap starting with the 2024 tax year, so all Social Security benefits are now fully exempt regardless of income.2Kansas Department of Revenue. Frequently Asked Questions About Individual Income Missouri did the same, exempting 100 percent of Social Security for anyone age 62 or older along with all Social Security disability benefits.3Missouri Department of Revenue. Pension FAQs North Dakota eliminated its tax in 2023. West Virginia, which previously taxed benefits above $50,000 in adjusted gross income ($100,000 for joint filers), reaches a full 100 percent exemption for tax year 2026.4West Virginia Tax Division. Social Security Modification
On the return itself, you’ll usually see a subtraction line where you back out any federally taxed Social Security from your state taxable income. Most tax software handles it automatically.
Eight States That Still Tax Social Security
Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont still count some Social Security benefits as taxable income. In each one, an exemption, subtraction, or credit erases the tax for retirees below certain income thresholds. Higher-income retirees are the ones most likely to owe.
Colorado
If you’re 65 or older, Colorado lets you subtract all of your federally taxed Social Security from state taxable income, with no income limit. Taxpayers between 55 and 64 can also subtract everything, but only if adjusted gross income stays below $75,000 (single) or $95,000 (joint). Above those thresholds, the subtraction caps at $20,000.5Colorado Department of Revenue. Income Tax Topics: Social Security, Pensions and Annuities
Connecticut
Connecticut fully exempts Social Security for single filers with adjusted gross income below $75,000 and joint filers below $100,000. Above those levels, a partial exemption applies on a sliding scale.6Connecticut Department of Revenue Services. Information for Seniors
Minnesota
Minnesota’s subtraction shelters all Social Security benefits for joint filers with adjusted gross income below $108,320 and single or head-of-household filers below $84,490. Above those thresholds, the subtraction phases out at a rate of 10 percent for each additional $4,000 of income ($2,000 for married filing separately).7Minnesota Department of Revenue. Social Security Benefit Subtraction
Montana
Montana follows the federal treatment. Whatever portion of your Social Security is taxable on your federal return gets included in Montana taxable income at the same amount, with no additional state-level subtraction or credit.8Montana Department of Revenue. Montana Tax Simplification Resource Hub
New Mexico
New Mexico exempts Social Security for single filers with income below $100,000, joint filers and heads of household below $150,000, and married-filing-separately filers below $75,000. Above those ceilings, benefits are taxed at the state’s normal rates.9New Mexico Taxation and Revenue Department. Social Security Income Tax Exemption
Rhode Island
Rhode Island provides a full exemption for filers below an annually adjusted income threshold. For tax year 2025, the limit was $107,000 for single and head-of-household filers and $133,500 for joint filers. Check the current Form RI-1040 instructions when you file, because the figures update each year.10Rhode Island Division of Taxation. Retirement Income Guide
Utah
Utah taxes Social Security but offers a nonrefundable credit that offsets the tax for lower- and middle-income retirees. The credit phases out as income rises, with 2025 thresholds set at $54,000 for single filers, $90,000 for joint filers and heads of household, and $45,000 for married filing separately.11Utah State Tax Commission. 2025 Utah Tax Updates Webinar
Vermont
Vermont exempts all Social Security income for single filers with adjusted gross income up to $50,000 and joint filers up to $65,000. The exemption phases out between $50,000 and $60,000 for single filers, and between $65,000 and $75,000 for joint filers. Above those upper limits it disappears entirely.12Vermont Department of Taxes. Seniors and Retirees
Federal Tax Still Applies Everywhere
Living in a no-tax state protects you at the state level, not the federal one. Whether the IRS taxes your benefits depends on your “combined income,” which is your adjusted gross income plus any tax-exempt interest plus half of your Social Security for the year.13Social Security Administration. Must I Pay Taxes on Social Security Benefits?
For single, head-of-household, and qualifying surviving spouse filers:
- Below $25,000: none of your benefits are taxable.
- $25,000 to $34,000: up to 50 percent may be taxable.
- Above $34,000: up to 85 percent may be taxable.
For married couples filing jointly:
- Below $32,000: none of your benefits are taxable.
- $32,000 to $44,000: up to 50 percent may be taxable.
- Above $44,000: up to 85 percent may be taxable.
These thresholds come from 26 U.S.C. § 86.14Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits The percentages describe how much of your benefit becomes taxable income, not the tax rate itself. That taxable share is added to your other income and taxed at your marginal rate. One catch worth knowing: the thresholds were set in the early 1990s and have never been indexed for inflation, so more retirees cross them each year.15Congressional Research Service. Social Security: Taxation of Benefits
Exempting Social Security Isn’t the Same as Exempting Retirement Income
A state that leaves Social Security alone may still tax the rest of your retirement income. Many of the 42 states that exempt Social Security tax 401(k) distributions, traditional IRA withdrawals, and pension payments as ordinary income. Arizona, Arkansas, Indiana, Kansas, and Virginia all fall into that pattern: full Social Security exemption, but other retirement account distributions get taxed. Some states offer partial deductions for pensions or for retirees above a certain age, but those carve-outs are narrower than the Social Security exemption itself.
Only the nine no-income-tax states protect every category of retirement income from state tax. If you’re weighing where to live in retirement, look at how the state treats pensions, 401(k) and IRA withdrawals, investment income, and property, not just Social Security.