Some Retirees Pay State Income Tax on Social Security in These 8 States
Key Points
Eight states have Social Security benefit taxes, though not all residents owe them.
You're more likely to owe federal Social Security benefit taxes, regardless of your state.
Talk to an accountant if you're unsure how this could affect your 2026 tax bill.
- The $23,760 Social Security bonus most retirees completely overlook ›
State Social Security benefit taxes have grown increasingly unpopular, and now only eight states still have them on the books. If you live in one of them, there's a chance you could lose a chunk of your benefits to your state government when you file your 2026 tax return.
You could also owe the federal government a slice of your checks. Here's what you need to know to prepare yourself.
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The 8 states that tax Social Security benefits
You could owe state Social Security benefit taxes if you live in one of the following eight states:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
However, living in one of these states isn't a guarantee that you'll owe these taxes. Most states have income limits that exempt low- and middle-income seniors from paying them. For example, Connecticut residents owe state taxes on their Social Security benefits only if their adjusted gross income (AGI) is $75,000 or more for single filers or $100,000 or more for married filers.
Exact tax rates also vary. Check with your state department of taxation or a local accountant to learn how much you could pay in state Social Security benefit taxes in 2026.
You're more likely to owe federal Social Security benefit taxes
The federal government taxes the Social Security benefits of seniors in all states if their provisional income -- AGI, plus any nontaxable interest from municipal bonds, and half their annual Social Security benefit -- exceeds certain thresholds for their marital status. The table below breaks down which portion of your benefits you could owe ordinary income tax on:
|
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 |
Data source: Social Security Administration.
An accountant can also help you estimate how much you'll owe in federal benefit taxes so you can budget accordingly. Keep in mind that you may owe taxes on a larger portion of your benefits in future years, as cost-of-living adjustments (COLAs) continue to increase your Social Security checks.
Make sure you have savings set aside to cover these taxes if you expect a bill. If that's not an option, contact the IRS right away to arrange a payment plan.
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