What States Don't Tax Social Security? (2026 List)

Last Updated: September 23, 2026

Most states — 38 as of 2026 — exempt Social Security benefits from state income tax entirely. For married couples comparing retirement locations, the annual difference between a high-tax and no-tax state is typically $500–$2,000 in state income tax — meaningful but rarely the primary factor. Federal SS taxation rules apply in all states regardless.

Estimate your Social Security benefit as a couple →

For the complete household tax framework — federal tax tiers, Roth conversion timing, IRMAA, and the survivor tax cliff — see our Social Security tax strategy guide for couples.

The Federal Tax Baseline

Before looking at states, it's worth briefly understanding the federal context. At the federal level, up to 85% of your Social Security benefits may be included in taxable income, depending on your "combined income" — a formula that adds your Adjusted Gross Income, nontaxable interest, and half of your Social Security benefits. According to the Social Security Administration, these federal thresholds have not been adjusted for inflation since 1984.

• Combined income under $25,000 (single) or $32,000 (married): No federal tax on SS
• $25,000–$34,000 (single) or $32,000–$44,000 (married): Up to 50% taxable
• Above $34,000 (single) or $44,000 (married): Up to 85% taxable

For a detailed explanation of how the combined income formula works and how to calculate whether your benefits will be taxed, see our combined income guide.

State taxes are layered on top of — or instead of — this federal treatment. Some states follow the federal formula exactly. Some exempt Social Security entirely. Some have their own thresholds.

States That Do NOT Tax Social Security (as of 2026)

The following states exempt Social Security benefits from state income tax entirely. If you retire in one of these states, you will pay no state income tax specifically on your Social Security income (though other income — pensions, IRA withdrawals, wages — may still be taxed depending on the state):

Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming

A few notes:

• Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax at all — so Social Security (and all other income) is untaxed at the state level.
• New Hampshire taxes only interest and dividends (not wages or Social Security).
• Several states on this list — including Iowa, Louisiana, and Ohio — have eliminated Social Security taxation in recent years as part of broader tax reforms.
• This list reflects the best available information as of early 2026. State tax laws change; verify your specific state's current treatment before making retirement location decisions.

States That DO Still Tax Social Security Benefits

As of 2026, the following states continue to tax Social Security benefits to some degree. Rules vary significantly by state:

Colorado Social Security benefits are partially taxed. Colorado allows an income subtraction for Social Security benefits received, with limits that vary by age and income level. Older retirees (65+) generally face reduced or eliminated taxes on SS income.

Connecticut SS benefits are exempt if your federal AGI is below $75,000 (single) or $100,000 (married). Above those thresholds, up to 25% of Social Security benefits are taxable.

Kansas SS benefits are exempt if your federal AGI is $75,000 or less. Above that threshold, benefits are taxable at the state rate.

Minnesota Minnesota follows the federal taxation formula for a portion of filers, but offers a Social Security subtraction for lower-income taxpayers. The subtraction phases out at higher income levels — high earners face full state taxation on federally taxable SS benefits.

Missouri SS benefits are fully exempt for single filers with AGI under $85,000 and married couples under $100,000. Missouri has been phasing out SS taxation and the thresholds have risen in recent years.

Montana Montana generally taxes Social Security using the federal formula (same thresholds, same 50%/85% inclusion), meaning most Montana retirees with moderate income will owe state tax on some SS benefits.

Nebraska Nebraska has been phasing out Social Security taxation — by 2025-2026, SS benefits are substantially or fully exempt depending on income. Check current Nebraska DOR guidance for your income level.

New Mexico SS benefits may be exempt depending on income. Single filers under $100,000 and married filers under $150,000 can generally exclude SS income. Higher earners face partial taxation.

Rhode Island SS benefits are exempt below certain income thresholds (roughly $88,000+ for single filers, $110,000+ for married). Above the threshold, benefits follow the federal taxable portion.

Utah Utah offers a Social Security credit rather than a full exemption. The credit phases out at higher income levels, so lower-income retirees effectively pay little or no state tax on SS, while higher earners may owe some.

Vermont SS benefits are exempt for single filers with AGI under $65,000 and married filers under $85,000. Above those thresholds, benefits follow the federal taxable inclusion rules.

West Virginia West Virginia has been reducing its SS taxation. As of 2026, a significant portion or all of SS benefits may be exempt — verify current rules, as legislation has been in flux.

Why It Matters in Dollars

The dollar impact of state Social Security taxation is real but often overstated in popular financial media. Here's a grounded example:

Scenario: Single retiree, $2,000/month in Social Security ($24,000/year), $20,000/year in IRA withdrawals. Combined income: $20,000 + $12,000 (½ of SS) = $32,000. Since $32,000 is above $25,000 but below $34,000, this filer is in the 50% tier — but the IRS two-tier formula (the lesser of 50% of the excess over $25,000, or 50% of benefits), not a flat 50%, makes just $3,500 of Social Security federally taxable. Above $34,000, up to 85% would be taxable.

Federal taxation on this $3,500 of included Social Security: after the standard deduction, this filer is in the 10% bracket, so roughly $350.

State tax on that same $3,500 (where applicable):

• In a state with a 5% flat rate on SS income: ~$175/year, or about $15/month
• In a state with a 6% rate: ~$210/year, or about $17.50/month

So for a middle-income retiree just above the taxation threshold, state Social Security taxation typically adds $10–$20/month in taxes — modest, because only a small slice of the benefit is federally taxable at that income level. For a higher-income retiree well into the 85% tier, the taxable base is larger and the dollar impact scales up accordingly.

The takeaway: state taxes matter, but they're usually not the dominant factor in a retirement location decision. Housing costs, healthcare access, family proximity, and overall cost of living tend to have a larger financial impact than Social Security state taxation alone.

The federal side dominates for another reason: it already reaches a large share of benefits. Across all US counties, 37.2% of Social Security dollars were reported as federally taxable income in tax year 2023. The Benefora Social Security Tax Bite Index shows the share for every county and flags the eight states that add a state tax on top.

Factoring State Taxes Into Your Retirement Location Decision

If you're comparing states for retirement, here's how to think about state Social Security taxation as one input among many:

It matters more if:

• You have high Social Security income (both spouses, high earners)
• You live in a high-tax state that taxes SS benefits at a meaningful rate (Montana, Minnesota)
• You have limited other income, making Social Security a large share of total income

It matters less if:

• Your combined income is below the state's exemption threshold
• You're in a state that phases out SS taxes at moderate income (where most people end up with low or zero state SS tax)
• The state with no SS tax has higher costs in other categories (property taxes, insurance) that offset the tax advantage

States with no income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming) offer the clearest benefit — but many of these also have higher property taxes or cost of living that should be part of the comparison.

For a complete approach to coordinating Social Security income with retirement location and tax planning, see the married couples Social Security strategy guide and our Roth Conversion Before Claiming guide — Roth conversions reduce your combined income regardless of which state you live in.

Frequently Asked Questions

Which states don't tax Social Security benefits?

As of 2026, the majority of states do not tax Social Security benefits, including Alabama, Alaska, Arizona, Arkansas, California, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Nevada, New Hampshire, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming. Eight of these states have no income tax at all (Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming). The remaining states on the list specifically exempt Social Security from their income tax.

Which states still tax Social Security benefits in 2026?

As of 2026, states that continue to tax Social Security benefits to some degree include Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, most of these states offer exemptions or phase-outs at lower income levels, so many retirees in these states owe little or no state tax on Social Security. Montana and Minnesota apply the broadest taxation. Several states have been phasing out Social Security taxation in recent years.

Does moving to a no-tax state eliminate all taxes on Social Security?

Moving to a state with no Social Security income tax eliminates state-level taxation on your SS benefits, but federal income taxes still apply. At the federal level, up to 85% of Social Security benefits may be taxable depending on your combined income (AGI + nontaxable interest + half of SS benefits). A no-tax state eliminates the state layer but not the federal layer. If your combined income is below $25,000 (single) or $32,000 (married), you owe no federal tax on Social Security either.

How do state Social Security taxes interact with federal taxes?

State and federal Social Security taxes are separate systems. At the federal level, the combined income formula determines what percentage of your SS benefits is included in federal taxable income (0%, up to 50%, or up to 85%). States then apply their own rules — some follow the federal formula exactly, some use different thresholds, and some exempt Social Security entirely regardless of what the federal rules say. Paying state tax on Social Security does not reduce your federal tax liability.

Should I move to a no-tax state to avoid Social Security taxes?

State Social Security taxation is a real cost but typically not the primary driver of retirement location decisions. For most retirees, the state tax on Social Security benefits ranges from $500 to $2,000 per year — a meaningful but not enormous amount. Factors with larger financial impact often include overall cost of living, housing costs, healthcare access, property taxes, and proximity to family. That said, for retirees with high Social Security income, choosing a state with no SS taxation can save meaningful money over a 20-30 year retirement.

Does Alaska tax Social Security benefits?

No. Alaska has no state income tax at all, so Social Security benefits are not subject to any Alaska state income tax. Federal income taxes on Social Security still apply depending on your combined income (AGI + nontaxable interest + half of your annual Social Security benefits).

Does Alabama tax Social Security benefits?

No. Alabama exempts Social Security benefits from state income tax entirely. Federal income taxes on Social Security still apply depending on your combined income (AGI + nontaxable interest + half of your annual Social Security benefits).

Does South Dakota tax Social Security benefits?

No. South Dakota has no state income tax, so Social Security benefits are not taxed at the state level. Federal taxation still applies based on the combined income formula.

Does Missouri tax Social Security benefits?

Missouri taxes Social Security benefits but offers a significant income-based exemption. As of 2026, Missouri provides a full deduction for Social Security income for single filers with AGI below approximately $85,000 and married filers below $100,000. Most Missouri retirees with moderate income owe little or no Missouri state tax on their Social Security benefits. Verify current thresholds with the Missouri Department of Revenue, as these limits have been rising.

Plan Around Your State's Rules

Understanding your state's Social Security tax treatment helps you estimate net income more accurately and plan withdrawals more strategically.

Estimate your household Social Security income →

For strategies to reduce both federal and state taxation on Social Security income — including how Roth conversions and IRA withdrawal timing interact with the combined income formula:

The Decision Kit includes:

Federal and state Social Security tax planning worksheets Combined income calculation guide IRA withdrawal sequencing strategy for minimizing SS taxation Step-by-step income planning for the year before you claim

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Continue learning:

• How to Calculate Combined Income — The federal SS tax formula explained
• Is Social Security Taxable? — Full federal tax treatment guide
• Roth Conversion Before Claiming — Reduce lifetime SS taxation with strategic conversions
• Social Security Claiming Age Guide for Couples — Your claiming age decision