41 States That Don't Tax Social Security Benefits

Key Points

• Most states don’t tax Social Security benefits at all.

• Of those that do, the policies vary significantly.

• On the federal level, some seniors are about to get a new tax break.

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

One of the most common questions I get asked from older friends and relatives is, "Will I have to pay taxes on my Social Security benefits?"

The short answer is "maybe." Some retirees have to pay federal income tax on a portion of their Social Security benefits, depending on their income level. However, the exact amount of tax you'll end up paying on your Social Security benefits depends not just on your income level, but where you live.

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The good news is that most states don't tax Social Security benefits at all. In more than 80% of all U.S. states, Social Security income is completely exempt from any state income taxes.

In this article, we'll take a closer look at the states that don't tax Social Security, the few states that still do, and a new tax break seniors are about to get that will help offset any tax burden.

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The 41 states that don't tax Social Security benefits

First, let's get to the list you've been waiting for. If you live in one of these 41 states (or D.C.), you won't pay any state income tax on your Social Security benefits in 2025.

• 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

Note that this list has two types of states. There are those that don't have a state income tax at all, like Florida, and those that have provisions in their tax code that specifically exclude Social Security income (or all retirement income, in some cases).

The states that have Social Security income tax

There are only nine states that still tax Social Security benefits in 2025, and in alphabetical order, they are:

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

There are a couple of key points to know, if your state is on this list.

First, the number of states that don't tax Social Security has increased in recent years and is likely to continue to do so. In fact, 2025 is the last year that West Virginia is going to tax Social Security.

Second, each of these states has its own tax framework for Social Security benefits, and they generally only apply to either higher-income households (significantly higher than the federal taxation thresholds) or to certain age groups, like Social Security beneficiaries under 65.

A special tax break for seniors

As a final thought, regardless of what state you live in, it's important to know that a special tax break is going into effect for tax years 2025 through 2028. President Trump campaigned on the elimination of taxes on Social Security altogether, but that isn't happening. However, the recent tax and spending plan included a senior bonus that should significantly lower any Social Security tax burden, especially on middle-income retirees.

The short version is that if you're 65 or older, you can qualify for a tax deduction of as much as $6,000 per person (so married couples can get twice that amount). It begins to phase out above income levels of $75,000 (single) and $150,000 (married), but if you qualify, you can use the deduction regardless of whether you choose to itemize on your tax return.

To be sure, this isn't likely to completely eliminate tax on Social Security benefits for many retirees, but it is certainly a valuable tax break worth knowing.

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