9 States That Still Tax Social Security Income in 2025
Key Points
States have been progressively getting rid of their Social Security tax.
Federal tax rules apply regardless of your state's rules.
The amount of your benefits subject to federal taxes depends on your combined income.
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Social Security has been a lifeline for millions of American retirees for decades, keeping plenty of people financially stable in their golden years. Most people spend their careers paying into the Social Security system via payroll taxes, expecting to reap the benefits on the back end.
However, one thing you shouldn't forget about Social Security is that it's income, and like other forms of income, there's a chance that you'll have to pay taxes on the benefits you receive. The good news is that most states don't tax Social Security benefits. The bad news is that it still leaves some states that do.
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The states that do not tax Social Security
As it stands, here are the nine states that do not tax Social Security benefits:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
If you're currently living in one of these states, know all hope isn't lost. States have been progressively doing away with the Social Security tax, and there's a chance your state jumps on the bandwagon. Take West Virginia, for example, which will eliminate its tax completely beginning in tax year 2026.
State rules don't override federal rules
An important point to note is that even if your state doesn't tax Social Security benefits, it doesn't mean you can avoid taxes altogether. Federal tax rules apply to everyone, regardless of their state's laws.
The IRS determines how much your benefits could potentially be taxed based on your combined income, which is the total of your adjusted gross income (AGI), half of your annual Social Security benefits, and any nontaxable interest you receive. For example, if your AGI was $10,000, you have $20,000 in benefits, and receive $500 in Treasury bonds, your combined income would be $20,500 ($10,000 + $10,000 + $500).
Based on your combined income, below is how much of your income is eligible to be taxed:
| Filing Status | Combined Income | Percentage of Benefits Taxable |
|---|---|---|
|
Single |
$25,000 to $34,000 |
Up to 50% |
|
Single |
More than $34,000 |
Up to 85% |
|
Married, filing jointly |
$32,000 to $44,000 |
Up to 50% |
|
Married, filing jointly |
More than $44,000 |
Up to 85% |
Source: IRS.
The amount of your benefits that are eligible to be taxed is added to your other sources of income and then taxed at your normal income tax rate. For example, if $15,000 of your benefits are eligible to be taxed, that $15,000 would be added to other income you have and then taxed regularly.
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