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Some retirees in the nine states that tax Social Security won't have to pay taxes on their benefits.
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Of the 41 states that don't tax Social Security, 13 don't tax any retirement income.
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Social Security benefits could still be subject to federal taxes, though, depending on income and tax filing type.
Americans work hard and pay taxes throughout their career. When they retire, they no longer have to work as hard.
But paying taxes? That's a different story. Taxes are seemingly inescapable, no matter how old you are.
However, there's some good news for retirees, depending on where you live. As of 2025, 41 states don't tax Social Security benefits.
Image source: Getty Images.
The nine states that do tax Social Security
Before we get to those 41 states that don't tax Social Security, let's look at the outliers that do. Nine U.S. states continue to require retirees to pay state income taxes on their Social Security benefits:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Not every retiree will have to pay state taxes on Social Security in these states, though. For example, Connecticut seniors who are single filers or married filing separately are exempt from state taxes on Social Security benefits if their adjusted gross income (AGI) is below $75,000. Those who are married filing jointly or who file as head of household don't have to pay state taxes if their AGI is below $100,000. Minnesota, New Mexico, Rhode Island, and Vermont have similar income tax regulations with different AGI thresholds.
Also, West Virginia is transitioning from taxing Social Security benefits. The Mountain State allows residents to subtract 65% of their Social Security benefits from their AGI in 2025. However, next year, the amount will increase to 100%.
States that don't tax Social Security
Now for the states that don't tax Social Security. The list currently includes 41 states, up from 39 just a couple of years ago:
- 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
Nine of these states don't tax any income:
- Alaska
- Florida
- Nevada
- New Hampshire
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Mississippi also recently passed legislation that could phase out its state income tax by 2040. However, specific triggers related to revenue and spending must be met for the Magnolia State's planned tax cuts.
Speaking of Mississippi, it's one of 13 states that don't tax any retirement income from 401(k) plans, IRAs, or pensions. Of course, this list includes the nine states without income taxes. It also includes Illinois, Iowa, and Pennsylvania.
Uncle Sam still has his hand out
Regardless of which state you live in, you could have to pay federal taxes on your Social Security benefits. Whether your benefits will be taxed and how much tax you'll have to pay depends on how much money you make. The table shows what the current levels are:
| Filing Type | Combined Annual Income | Percent of Social Security Benefits Taxable |
|---|---|---|
| Married filing jointly | Up to $32,000 | 0% |
| $32,000 to $44,000 | Up to 50% | |
| More than $44,000 | Up to 85% | |
| Individual | Up to $25,000 | 0% |
| $25,000 to $34,000 | Up to 50% | |
| More than $34,000 | Up to 85% |
Data source: Social Security Administration. Table created by author.
To determine your combined annual income, add half of your Social Security benefits plus all other income. Other income includes money received from capital gains, dividends, interest, pensions, and wages.
Could Uncle Sam join the 41 states that don't tax Social Security benefits? Maybe. President Trump has proposed eliminating federal taxes on retirees' Social Security benefits. While the idea is relatively popular, though, it comes with a significant downside: Ending federal taxation on Social Security could speed up how quickly the program's trust funds run out of money.
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