41 States That Don't Tax Social Security Benefits
Key Points
Most states don't tax Social Security benefits, but the federal government does.
Some states with benefit taxes have exemptions for low- to middle-income seniors.
Consult with an accountant if you're unsure how Social Security benefit taxes could affect you.
- The $23,760 Social Security bonus most retirees completely overlook ›
It takes more than savings to retire comfortably. You also need to plan carefully so you can maximize your savings' growth and minimize how much of your hard-earned cash you lose to taxes. Income taxes are obviously the big concern, but you could also face federal Social Security benefit taxes if you're currently receiving checks.
Nine states tax the Social Security benefits of some of their seniors as well. But if you live in one of the 41 states listed below, you won't have to worry about that.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
Image source: Getty Images.
The 41 states that don't tax Social Security benefits
You won't owe any state Social Security benefit taxes if you live in one of the following 41 states in retirement:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- Wyoming
West Virginia will join this list in 2026 when it completely phases out its state Social Security benefit tax. In 2025, West Virginians with adjustable gross incomes (AGIs) of $50,000 or less for an individual or $100,000 or less for married couples already don't pay taxes on Social Security benefits. Those with incomes over this limit will have 65% of their Social Security income exempt from state taxation this year.
You might be able to avoid state Social Security taxes even if you live in a state not listed above. Like West Virginia, many states have income limits that exempt low- to middle-income earners from paying Social Security benefit taxes. Check with your state's department of taxation or an accountant based in your state to learn whether you're at risk of owing state Social Security benefit taxes.
Federal Social Security benefit taxes are still on the books
Though President Trump claims to have eliminated federal Social Security benefit taxes with his "big, beautiful bill," that law doesn't actually change benefit taxes at all. It adds a new senior tax deduction worth up to $6,000 for single adults or $12,000 for married couples. This can reduce your taxable income and could reduce your likelihood of owing benefit taxes. But there are a few requirements you must meet.
First, you must be 65 or older. If you're younger than this, you won't qualify for the deduction even if you're on Social Security. Second, you must have an annual income of $75,000 or less if you're a single adult or $150,000 or less if you're married to claim the full deduction. You could be eligible for a partial deduction as long as your income is no more than $150,000 for a single adult or $250,000 for a married couple.
Even with the credit, you could still owe federal benefit taxes. These are based on your provisional income, which is your AGI, plus any nontaxable interest you might have from municipal bonds, and half your annual Social Security benefit. The following table breaks down what percentage of your Social Security benefit could be based on your provisional income and marital status.
|
Marital Status |
0% of Benefits Taxable If Provisional Income Is Below: |
Up to 50% of Benefits Taxable If Provisional Income Is Between: |
Up to 85% of Benefits Taxable If Provisional Income Exceeds: |
|---|---|---|---|
|
Single |
$25,000 |
$25,000 and $34,000 |
$34,000 |
|
Married |
$32,000 |
$32,000 and $44,000 |
$44,000 |
Source: Social Security Administration.
These taxation thresholds haven't changed since they were put in place in the 1980s. With average benefits increasing annually thanks to cost-of-living adjustments (COLAs), more and more people find themselves paying these taxes every year.
To be clear, you won't lose up to 85% of your benefits. But you could owe ordinary income taxes on up to 85% of your benefits. That could still amount to thousands of dollars.
A tax professional can give you personalized advice on what to do if you're worried about owing Social Security benefit taxes this year. You could also ask the government to withhold money from your checks for taxes. If you do this and it withholds more than it needed to, you'll get the extra back with your tax refund.
The $23,760 Social Security bonus most retirees completely overlook
If you're like most Americans, you're a few years (or more) behind on your retirement savings. But a handful of little-known "Social Security secrets" could help ensure a boost in your retirement income.
One easy trick could pay you as much as $23,760 more... each year! Once you learn how to maximize your Social Security benefits, we think you could retire confidently with the peace of mind we're all after. Join Stock Advisor to learn more about these strategies.
View the "Social Security secrets" »
The Motley Fool has a disclosure policy.
Recommended Articles
