State Taxes on Social Security Benefits: 2026 State-by-State Guide
Updated May 2026. State rules verified against state department of revenue publications and Kiplinger.
There are actually two layers of Social Security taxation: the federal tax (up to 85% of benefits taxable depending on your "provisional income" — see our full SS taxation guide) and the state tax, which applies only in the 8 states listed here. This page covers state-level rules only.
The 8 states that tax Social Security in 2026
| State | Exemption threshold | How it works above the threshold |
|---|---|---|
| Colorado | FRA+: ~$107,000 (single) / ~$133,750 (joint)1 | Federally taxable SS included in CO income; top rate 4.4%. Filers below FRA are not eligible for the exemption. |
| Connecticut | $75,000 AGI (single) / $100,000 (joint)2 | Above threshold: up to 25% of federally taxable SS may be subject to CT income tax (rates 3%–6.99%). |
| Minnesota | $86,410 (single) / $110,780 (joint) — full exemption3 | Partial exemption phases out from $86,410–$126,410 (single) or $110,780–$150,780 (joint). Above upper limit: all federally taxable SS is included in MN income (top rate 9.85%). |
| Montana | $5,500 subtraction from federal taxable income (age 65+) | No AGI-based exemption. The $5,500 subtraction partially offsets SS taxation; most Montana retirees will owe some state tax on SS at MT's 5.9% flat rate. |
| New Mexico | $100,000 AGI (single) / $150,000 (joint)4 | Above threshold: SS benefits included in NM taxable income (top rate 5.9%). |
| Rhode Island | FRA+: ~$107,000 (single) / ~$133,750 (joint)5 | Federally taxable SS included in RI income (top rate 5.99%). Filers below FRA are not eligible for the exemption. |
| Utah | $54,000 AGI (single) / $90,000 (joint) for full credit6 | Utah offers a nonrefundable tax credit (not an exemption). The credit fully offsets SS tax below the income limit and phases out above. Utah flat rate: 4.65%. |
| Vermont | $55,000 AGI (single) / $70,000 (joint) — full exemption7 | Partial exemption phases out above those thresholds. At higher incomes, all federally taxable SS is included in VT taxable income (top rate 8.75%). |
CO and RI: 2026 thresholds not yet published as of May 2026; table shows 2025 values. These thresholds are adjusted annually for inflation, so 2026 figures will be modestly higher once released.
State SS tax lookup tool
Select your state, filing status, and approximate AGI (federal adjusted gross income) to see whether your Social Security income is likely exempt from state tax.
Why most retirees in these 8 states pay nothing
Generous income-based exemptions mean that even in the states that technically tax Social Security, most retirees qualify for a full or near-full exemption:
- Colorado and Rhode Island: Both exempt benefits for anyone at or past FRA with AGI under roughly $107,000 (single) or $133,750 (joint). A typical retiree — say, $2,200/month in SS plus $30,000 in IRA withdrawals — comes in at around $56,400 AGI, well under the threshold.
- Connecticut: A couple with $65,000 in combined SS and IRA withdrawals pays no Connecticut tax on SS. Even above $100,000 joint AGI, only up to 25% of the federally-taxable portion is subject to CT tax.
- New Mexico: With the highest thresholds of the eight states ($100K single / $150K joint), very few middle-income retirees will owe NM tax on SS.
- Utah: The nonrefundable credit approach is less intuitive than an exemption, but the practical effect for incomes below $54K/$90K is the same — effectively zero state SS tax.
- Minnesota and Vermont: The lower thresholds ($86K/$110K for MN; $55K/$70K for VT) mean higher-income retirees in these states will owe some state tax on SS. If you're a Minnesota retiree with a pension or large IRA, this is worth a formal calculation.
- Montana: The $5,500 subtraction is the least generous approach. Montana retirees with significant SS income should factor this into their retirement income plan — there's no income-based phase-out.
States that recently eliminated Social Security taxes
The trend is sharply toward elimination. In 2023, 13 states taxed Social Security. By 2026, that number is 8. Recent repealers:
| State | When eliminated |
|---|---|
| West Virginia | January 1, 2026 (final year of 3-year phase-out) |
| Iowa | 2026 (phased out 2023–2026) |
| Nebraska | 2025 |
| Kansas | 2024 |
| Missouri | 2024 |
Retirement relocation and SS tax
If you're planning a retirement relocation and Social Security is a significant income source, your state's tax treatment is one factor to evaluate. But don't over-weight it. A state with no SS tax but higher property taxes, lower-quality healthcare access, or higher cost of living may still leave you worse off than staying in a low-threshold state like Colorado or Connecticut.
A more complete retirement income tax comparison should account for: state income tax on all income sources (pension, IRA withdrawals, capital gains), property tax, estate/inheritance tax, and overall cost of living. Many financial advisors who specialize in Social Security can model the full retirement income picture across your state-of-consideration options.
State tax on SS vs. federal tax on SS
The two operate independently. You can owe federal tax on SS, state tax on SS, both, or neither. The federal tax applies regardless of which state you live in — up to 85% of your benefits are taxable at the federal level based on your provisional income (adjusted gross income + nontaxable interest + half of SS). State taxes are an additional layer on top of that federal baseline, but only in the 8 states listed here — and only if you're above the state's income threshold.
Get your full retirement income tax picture modeled
State SS tax is just one layer of retirement income taxation. A fee-only advisor who specializes in Social Security can model your complete tax picture: provisional income, Roth conversion timing, IRMAA exposure, state tax, and RMD interaction — before you commit to a claiming age and income mix. Free match, no obligation.
Sources
- Kiplinger — The 8 States That Tax Social Security Retirement Income in 2026 — Colorado exemption: FRA+ filers below ~$107,000 (single) / $133,750 (joint); 2025 thresholds shown, 2026 not yet published. Verified May 2026.
- Connecticut Dept. of Revenue Services — Social Security Income Tax Treatment — single AGI threshold $75,000; joint $100,000; above threshold, up to 25% of federally taxable SS may be taxed. Verified May 2026.
- Minnesota Dept. of Revenue — Social Security Subtraction — 2026 full exemption thresholds: $86,410 (single) / $110,780 (joint); upper phase-out: $126,410/$150,780. Verified May 2026.
- New Mexico Taxation and Revenue Dept. — exemption for single filers with AGI ≤ $100,000, joint filers ≤ $150,000. Verified via Kiplinger May 2026.
- Rhode Island Division of Taxation — RI Social Security Exemption — FRA+ filers below ~$107,000 (single) / $133,750 (joint); 2025 thresholds shown, 2026 not yet published. Verified May 2026.
- Utah State Tax Commission — nonrefundable credit for single AGI < $54,000 / joint AGI < $90,000; phases out above those thresholds; Utah flat rate 4.65%. Verified via Kiplinger May 2026.
- Vermont Dept. of Taxes — Social Security Income — full exemption: AGI < $55,000 (single) / $70,000 (joint); partial exemption applies above those thresholds. Verified May 2026.
- WV MetroNews / WV Tax Division — WV Final Year of Phase-Out — West Virginia fully eliminated SS tax effective January 1, 2026, completing a 3-year phase-out (35%/65%/100%). Verified May 2026.
State exemption thresholds verified as of May 2026. CO and RI 2026-specific thresholds not yet published; 2025 values shown as proxies — 2026 thresholds will be slightly higher when released. Always verify with your state tax authority or a qualified tax advisor.
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