States that tax Social Security benefits.
Most states fully exclude Social Security. A handful don't. Here's the breakdown.
If you're planning a retirement-state move or comparing retirement burdens across states, Social Security taxation is one of the biggest swing factors. Federal Social Security taxability is the same everywhere; state treatment varies considerably.
The summary
The 9 no-income-tax states (AK, FL, NV, NH, SD, TN, TX, WA, WY) don't tax Social Security because they don't tax any individual income. Among the 41 income-tax states + DC, most fully exclude Social Security at the state level — but about a dozen tax it partially or fully, usually with income-based phase-outs.
States that tax Social Security (with phase-outs)
These states tax some portion of Social Security at the state level. Most use income-based phase-outs, meaning lower- and moderate-income retirees see most or all of their Social Security excluded, while higher-income retirees see partial state-level taxation.
| State | Treatment | Notes | Per-state guide |
|---|---|---|---|
| Colorado (CO) | Partial | Subtraction for retirees over age threshold; income-based | CO → |
| Connecticut (CT) | Partial | Exemption phases out at higher income | CT → |
| Kansas (KS) | Partial | Excluded below income threshold; taxed above | KS → |
| Minnesota (MN) | Partial | State subtraction phases out at higher income | MN → |
| Montana (MT) | Partial | State subtraction; restructured 2024 | MT → |
| Nebraska (NE) | Phasing out | Annual exclusion percentage increasing; heading to full exclusion | NE → |
| New Mexico (NM) | Partial | Excluded below threshold; partial above | NM → |
| Rhode Island (RI) | Partial | Age + income phase-out | RI → |
| Utah (UT) | Partial | Social Security credit phases out at higher income | UT → |
| Vermont (VT) | Partial | Income-based subtraction | VT → |
| West Virginia (WV) | Phasing out | Multi-year exclusion phase-in; heading to full exclusion | WV → |
| Wisconsin (WI) | Partial | Income-based subtraction | WI → |
States that fully exclude Social Security
The majority of income-tax states + DC fully exclude Social Security from state taxable income, conforming to federal exclusion or going further. This is the most common state-level treatment.
| State | Per-state guide |
|---|---|
| Alabama (AL) | AL → |
| Arizona (AZ) | AZ → |
| Arkansas (AR) | AR → |
| California (CA) | CA → |
| Delaware (DE) | DE → |
| District of Columbia (DC) | DC → |
| Georgia (GA) | GA → |
| Hawaii (HI) | HI → |
| Idaho (ID) | ID → |
| Illinois (IL) | IL → |
| Indiana (IN) | IN → |
| Iowa (IA) | IA → |
| Kentucky (KY) | KY → |
| Louisiana (LA) | LA → |
| Maine (ME) | ME → |
| Maryland (MD) | MD → |
| Massachusetts (MA) | MA → |
| Michigan (MI) | MI → |
| Mississippi (MS) | MS → |
| Missouri (MO) | MO → |
| New Jersey (NJ) | NJ → |
| New York (NY) | NY → |
| North Carolina (NC) | NC → |
| North Dakota (ND) | ND → |
| Ohio (OH) | OH → |
| Oklahoma (OK) | OK → |
| Oregon (OR) | OR → |
| Pennsylvania (PA) | PA → |
| South Carolina (SC) | SC → |
| Virginia (VA) | VA → |
Key planning considerations
- Federal Social Security taxability still applies everywhere. Up to 85% of Social Security benefits are federally taxable based on combined income (regardless of state). The federal floor is the same in every state — it's the state-level treatment that varies.
- Phase-outs interact with other retirement income. Large Roth conversion years, IRA withdrawal lumps, capital gain harvesting, etc. can push income above state phase-out thresholds — triggering state Social Security tax in years it wouldn't otherwise apply. Strategic withdrawal sequencing matters in phase-out states.
- Most retirement-state moves don't optimize for Social Security alone. Property tax, cost of living, healthcare access, and family proximity typically dominate the calculus. SS state-tax savings are usually a tiebreaker, not a primary driver.
- State-tax treatment can change. Several states (Nebraska, West Virginia, Missouri, others) have phased out or are phasing out their Social Security tax via multi-year legislation. The current-year structure is what matters at filing.
Related comparisons
- States with no individual income tax →
- States with reciprocity agreements →
- States with estate or inheritance tax →
- Tool: state-move tax impact estimator →
Planning a retirement-state move?
Book a free 15-minute Discovery Exchange. We'll model total state tax burden — including Social Security, pension income, capital gains, and estate exposure — for the states you're comparing.
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