Retirees in These 9 States Risk Losing Some of Their Social Security Checks

Key Points

• Most states don't tax Social Security benefits.

• The few that do often tax with a light hand, if at all.

• Focus on your overall retirement picture for the best results.

• The $23,760 Social Security bonus most retirees completely overlook ›

Social Security benefits are vital to most retirees. According to the National Academy of Social Insurance (NASI), Social Security benefits make up more than half the retirement income of 61% of beneficiaries, and for 20% of people age 65 and up, it's the sole income source. Furthermore, NASI notes: "Overall, Social Security keeps 22 million Americans out of poverty, including nearly 15 million seniors and 1 million children."

Given all that, it's clear that retirees will want to keep every dollar of their benefits if they can. Most folks will be able to keep most of their benefits -- but some will fall prey to the federal government's taxation of benefits. Most states don't tax benefits, but some states do.

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These 41 states don't tax Social Security

Let's start with some good news. The 41 states below (and Washington, D.C.) do not tax Social Security benefits. There's a good chance you live in one of these states.

• 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
• Washington, D.C.
• Wyoming

These 9 states do tax Social Security benefits

Some states do tax Social Security benefits, though -- nine of them, to be precise. But this bad news is not really that bad in most cases. Many retirees in these states will pay little to no taxes on their Social Security benefits to their state, because there are often income or age thresholds, with older and/or lower-income residents excluded from the tax.

Here are the nine states:

• Colorado
• Connecticut
• Minnesota
• Montana
• New Mexico
• Rhode Island
• Utah
• Vermont
• West Virginia

As an example, in West Virginia, those with federal adjusted gross income (AGI) of $50,000 or less, or couples filing jointly with AGI of $100,000 or less, will not have their Social Security benefits taxed. Utah, meanwhile, is eliminating Social Security taxes on those earning up to $90,000.

By the way, this list of states that tax Social Security benefits has been shrinking. As of 2016, for example, 13 states taxed Social Security. So perhaps by the time you retire, your state won't tax it.

Your big Social Security picture

No matter which state you live in, don't focus too much on just Social Security taxes, or any other kind of tax. Remember that every state needs income. So if it's not taxing retirement income (or any income), it might have a heavier taxing hand when it comes to sales taxes or property taxes.

Meanwhile, get savvy about your Social Security benefits, whether you're about to claim them or whether retirement is decades away. Here are some things to know:

• You can get an estimate of your future benefits by setting up a my Social Security account at the Social Security Administration (SSA) website. Doing so will grant you access to estimates of your future benefits. The average monthly retirement benefit was recently $2,002 (as of May 2025) -- or around $24,000 annually. That's not a lot, so start planning to build other income streams for your retirement.
• Most of us should be able to increase our future Social Security benefit checks, as there are several ways to do so -- such as by delaying claiming them, or earning more. (One study found that for most people, waiting until age 70 is best to maximize benefits.)
• Our future benefits are not guaranteed, as Social Security's coffers are shrinking. If nothing is done, benefits may be shrinking, too, in a few years, potentially to 81% of what we're owed, or less. So it's smart to keep up with Social Security developments, such as changes made by President Trump's "big, beautiful bill", as some of them are likely to hurt Social Security's outlook.

Retirement planning is very important, so take some time to think through issues such as how much income you'll need to retire with and how you'll amass it. Come up with a plan, and then stick with it.

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