States That Tax Social Security 2026 List – If you’re a U.S. retiree relying on Social Security, understanding states that tax Social Security 2026 is essential for retirement planning. While the federal government may tax up to 85% of your benefits depending on your combined income, most states leave Social Security completely tax-free. However, a small group of states still imposes taxes on benefits for higher-income retirees.
In 2026, only 8 states tax Social Security benefits to some degree, while 42 states plus the District of Columbia do not. This guide provides the most current 2026 list based on trusted sources like CNBC, Money, and retirement tax analyses. We break down exactly which states tax Social Security, how much, and what it means for your retirement budget.
Federal vs. State Taxation of Social Security Benefits
The IRS taxes Social Security benefits at the federal level if your “combined income” (adjusted gross income + nontaxable interest + half your Social Security benefits) exceeds certain thresholds:
- Up to 50% of benefits may be taxable if combined income is between $25,000–$34,000 (single) or $32,000–$44,000 (joint).
- Up to 85% may be taxable above those amounts.
States generally follow federal rules but can choose to exempt benefits entirely, offer partial exemptions, or apply their own income thresholds. State taxes on Social Security are separate from federal taxes and depend on where you live.
States That Tax Social Security Benefits in 2026
Here is the complete 2026 list of states that tax Social Security:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
These eight states tax benefits only above specific income thresholds, protecting most lower- and middle-income retirees. Taxation is often limited or phased out based on age, filing status, and adjusted gross income (AGI).
Colorado
Benefits are taxed for individuals ages 55–64 with AGI over $75,000 (single) or $95,000 (joint). Residents 65 and older often qualify for full deductions on federally taxable Social Security.
Connecticut
Social Security is taxed only if AGI exceeds $75,000 (single) or $100,000 (joint). No more than 25% of benefits are typically taxable in these cases.
Minnesota
Benefits are taxed if AGI exceeds approximately $84,490 (single) or $108,320 (joint). Lower-income retirees receive substantial subtractions.
Montana
Taxation applies if AGI exceeds $25,000 (single) or $32,000 (joint). The state uses its own worksheet, which may differ slightly from federal calculations.
New Mexico
Benefits are taxed only for single filers with AGI of $100,000 or more or joint filers with $150,000 or more. About 86% of seniors pay no state tax on Social Security.
Rhode Island
No tax applies if you have reached full retirement age (66–67 depending on birth year) and AGI is below roughly $107,000 (single) or $133,750 (joint). Higher earners or those below full retirement age may owe taxes.
Utah
Benefits are taxed if income exceeds $54,000 (single) or $90,000 (joint). The state offers credits that can reduce or eliminate the tax for many retirees.
Vermont
Full exemption applies if income is under $55,000 (single) (recently increased); partial exemptions extend up to $70,000. Higher incomes follow a graduated system.
States That Do Not Tax Social Security Benefits in 2026
42 states + Washington, D.C. do not tax Social Security benefits at all in 2026. These include popular retirement destinations like Florida, Texas, California, New York, Illinois, and Pennsylvania.
Recent changes have made more states retiree-friendly:
- West Virginia fully eliminated its tax on Social Security effective 2026 after a multi-year phase-out.
- Kansas, Missouri, and Nebraska ended taxation in 2024.
Recent Changes and Trends in Social Security State Taxes
States continue moving toward full exemptions to attract retirees. Legislation to eliminate or further reduce taxes was introduced in nearly all eight remaining taxing states in 2025, though most did not pass. AARP and retiree advocacy groups are actively pushing for broader reforms.
How to Minimize or Avoid State Taxes on Social Security?
- Consider relocating — Moving to one of the 42 non-taxing states can save thousands annually.
- Manage your income — Keep AGI below state thresholds through Roth conversions, tax-efficient withdrawals, or part-time work limits.
- File correctly — Use state-specific worksheets for Social Security subtractions or credits.
- Consult a professional — Tax rules vary by filing status and other income sources. A tax advisor familiar with your state can help.
Frequently Asked Questions About States That Tax Social Security 2026
Will my Social Security be taxed in 2026?
It depends on your state and income. In 42 states + D.C., it is 100% tax-free at the state level. In the eight listed states, it is taxed only if your AGI exceeds specific thresholds.
Did West Virginia stop taxing Social Security in 2026?
Yes — full exemption began January 1, 2026.
Does federal taxation affect state taxes?
States that tax benefits usually start from the federally taxable portion but apply their own rules and exemptions.
Are there any states considering changes for 2027?
Advocacy continues in the remaining eight states. Check your state department of revenue for updates.
Where can I get the latest official information?
Visit your state’s tax department website or consult IRS Publication 915 for federal rules.
Planning for retirement taxes is crucial. Knowing the states that tax Social Security benefits in 2026 helps you make informed decisions about where to live and how to structure your income. Whether you stay in a taxing state or move to a tax-friendly one, understanding these rules can preserve more of your hard-earned benefits.
This article is for informational purposes only and is not tax advice. Tax laws can change; always verify with official state sources or a qualified tax professional for your specific situation.