In the U.S. the Federal Government does include social security benefits in its calculation of combined income, which is then taxed at a federal level.
Individual States also have the right to tax Social Security benefits, however all but nine have now decided not to tax these benefits.
States that no longer tax social security benefits
Missouri and Kansas decided not to tax social security benefits in 2024, leaving only nine states that still tax benefits in 2026.
Note though that many states have exemptions and/or allow deductions for federal taxes, so pay attention to the rules in each state when it comes to time to file your state taxes.
Nine states that tax social security benefits
The nine states that still tax social security benefits are:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Here are the exemptions for each state.
Colorado
Social Security recipients under the age of 65 are not taxed on the first $20,000 of their benefits.
Starting in 2025, residents aged 55 to 64 with an adjusted gross income (AGI) of $75,000 or less (individuals) or $95,000 or less (couples filing jointly) can fully deduct federally taxed benefits on their state income tax returns.
Connecticut
Single filers (or married individuals filing separately) with an AGI below $75,000, and married couples filing jointly with an AGI below $100,000, are exempt from state taxes on their benefits. However, if your income tops those thresholds, 25% of your benefits may be taxed.
Minnesota
Married filers with an AGI under $108,320, and individuals with an AGI below $84,490, pay no state taxes on Social Security benefits.
Montana
Single filers with an AGI less than $25,000, and joint filers with an AGI less than $32,000, can deduct all their Social Security benefits from state taxes. Up to 50% of benefits become taxable once these thresholds are reached. The 85% threshold is $34,000 for single filers and $44,000 for married couples filing jointly.
New Mexico
Individual recipients earning less than $100,000 annually, and married couples jointly earning less than $150,000, are exempt from state taxes on their benefits.
Rhode Island
Individuals with an AGI below $107,00, and married couples with an AGI below $133,750, are exempt from state taxes on their benefits.
Utah
Single filers earning less than $54,000 annually, and married couples earning less than $90,000 (or $45,000 if married filing separately), are exempt from state taxes on their benefits.
Vermont
Married couples with an AGI below $65,000, and individuals earning less than $50,000 per year, are exempt from state taxes on their benefits.
West Virginia
For taxable years beginning on or after January 1, 2026, all West Virginia Social Security recipients may qualify for exemptions. 100% of the amount of Social Security benefits received and included in federal AGI may be subtracted.
What social security benefits are taxed?
In general, when we talk about social security benefits being taxed we’re talking about retirement benefits as people receiving these are most likely to be in a position where they clear the thresholds for the amounts to be taxable.
However, note that Disability Benefits and Survivor Benefits are also taxable. Supplemental Security Income (SSI) payments are not taxed.
To figure out how much you received in benefits over the course of the year, download a copy of your 1099 or 1042S tax form so you can report your Social Security income on your tax return.
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