Only eight states charge income tax on Social Security benefits for the 2026 tax year: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. The other 42 states either have no personal income tax or fully exempt Social Security from their tax base, so state taxes on Social Security benefits are not a concern for most retirees. Even in the eight taxing states, income-based exemptions, subtractions, or credits erase the tax for lower- and middle-income filers.
If your state isn’t on that list of eight, you owe nothing to the state on your benefits. That includes the nine states with no income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) and the 33 income-tax states that specifically exclude Social Security. Kansas, Missouri, and Nebraska joined the exempt group in 2024, and West Virginia’s phase-out finished with the 2026 tax year, making its exemption complete at every income level.1West Virginia Tax Division. Senior Citizen Social Security Modification
How Each of the Eight Taxing States Handles Benefits
No two of these states use the same method. Some fully exempt benefits below an income cutoff, some allow a fixed-dollar subtraction, and one uses a tax credit. The rate applied to any taxable portion is the same graduated rate the state uses for ordinary income; there is no special Social Security rate.
Colorado
If you are 65 or older, you can subtract the entire amount of Social Security benefits included in your federal taxable income, with no income cap.2Department of Revenue – Taxation. Income Tax Topics: Social Security, Pensions and Annuities Filers between 55 and 64 can also subtract the full amount if adjusted gross income stays below $75,000 (single) or $95,000 (joint). Above those levels, this younger group is capped at a $20,000 subtraction.
Connecticut
Your benefits are fully exempt if your federal AGI is below $75,000 (single or married filing separately) or $100,000 (joint or head of household).3Connecticut General Assembly Office of Legislative Research. Income Tax Exemptions for Retirement Income Above those thresholds, no more than 25% of your total Social Security benefits can be subject to Connecticut tax.
Minnesota
Minnesota offers two subtraction methods and lets you use whichever helps more. Under the simplified method, all taxable Social Security is subtracted if AGI is below $110,780 (joint) or $86,410 (single or head of household) for 2026.4Minnesota Department of Revenue. Inflation-Adjusted Amounts for 2026 Above the threshold, the subtraction drops by 10% for each $4,000 of AGI over the limit ($2,000 for married filing separately).5Minnesota Department of Revenue. Social Security Benefit Subtraction An alternative method based on provisional income can produce a larger subtraction for some filers.
Montana
Montana taxes Social Security to the same extent it is federally taxable. Filers 65 and older receive a $5,500 subtraction from federal taxable income ($11,000 for joint filers when both spouses are 65 or older), adjusted annually for inflation.6Montana Department of Revenue. Montana Tax Simplification Resource Hub That subtraction wipes out the tax on benefits for retirees with modest incomes.
New Mexico
Benefits are exempt for single filers with income under $100,000 and joint filers with income under $150,000. The threshold for married filing separately is $75,000.7New Mexico Taxation and Revenue Department. Social Security Income Tax Exemption Retirees above those limits may owe tax on a portion of their benefits.
Rhode Island
The federally taxable portion of your benefits is fully exempt if your AGI is below $107,000 (single, head of household, or married filing separately) or $133,500 (joint).8Rhode Island Division of Taxation. Retirement Income Guide 2026 Above those thresholds, the modification does not apply and benefits are taxed as ordinary income.
Utah
Utah taxes benefits but grants a nonrefundable credit equal to the state tax rate multiplied by the Social Security benefits included in taxable income. The credit phases out at $0.025 for each dollar of modified AGI above $90,000 (joint or head of household), $54,000 (single), or $45,000 (married filing separately).9Utah Legislature. Utah Code 59-10-1042 – Nonrefundable Tax Credit for Social Security Benefits Below those income levels, the credit erases the tax entirely.
Vermont
A full exemption applies for single filers with AGI up to $55,000 and joint filers with AGI up to $70,000. A partial exemption covers single filers between $55,001 and $64,999 and joint filers between $70,001 and $79,999. Above $65,000 (single) or $80,000 (joint), no exemption is available.10Vermont Department of Taxes. Social Security Exemption These are the 2025 thresholds; Vermont may adjust them for 2026.
The Federal Number That Feeds Your State Return
Most of the taxing states start their calculation with the amount of Social Security already taxable on your federal return, so it helps to know how that federal figure is built. The IRS uses “provisional income,” which is your AGI plus nontaxable interest plus half your benefits.11Internal Revenue Service. Publication 915 (2025), Social Security and Equivalent Railroad Retirement Benefits
Below $25,000 (single) or $32,000 (joint), none of your benefits are federally taxable, and nothing flows to your state return. Between $25,000 and $34,000 (single) or $32,000 and $44,000 (joint), up to 50% becomes taxable. Above the upper figure, up to 85% can be included in federal taxable income.12Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits Whatever amount is federally taxable is the starting point that your state then reduces through the exemption or subtraction rules above.
If You Move Mid-Year
Relocating between a taxing state and an exempt state does not mean you pick one for the whole year. You file a part-year resident return in each state and allocate Social Security to whichever state you lived in when each payment arrived. Dividing the annual benefit by 12 and assigning each month to the state of residence that month is a workable approach.
Do not file as a full-year resident of one state and a nonresident of the other. If both states end up taxing the same benefits, your new resident state generally provides a credit for taxes paid to the former state, which prevents double taxation.
Covering What You’ll Owe
Social Security does not withhold state income tax from your monthly payment. If you live in one of the eight taxing states and expect to owe, you have two ways to stay current.
You can submit Form W-4V to the Social Security Administration and elect federal withholding at 7%, 10%, 12%, or 22% of your monthly benefit.13Internal Revenue Service. Form W-4V (Rev. January 2026) That only covers federal tax, but choosing a higher rate produces a federal refund you can use toward the state bill.
The direct route is quarterly estimated payments to your state. Most states require estimated tax if you expect to owe more than a threshold amount (commonly $1,000) after withholding and credits. Your state’s Department of Revenue publishes the form and the quarterly due dates, which typically fall in April, June, September, and January. Electronic payment through the state portal is usually fastest; card payments generally carry a convenience fee of roughly 2% to 4%.
Bills to reduce or eliminate Social Security taxation surface regularly in the remaining eight states, so if you live in one of them, checking your state’s rules again before you file each year is worth the few minutes.