States That Don't Tax Social Security Benefits (2026 Guide)

Last Updated: March 17, 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, 50% of SS benefits ($12,000) is federally taxable. Above $34,000, 85% would be taxable.

Federal taxation on this $12,000 included Social Security: at 22% bracket, roughly $2,640.

State tax on that same $12,000 (where applicable):

• In a state with a 5% flat rate on SS income: ~$600/year, or $50/month
• In a state with a 6% rate: ~$720/year, or $60/month

So for a middle-income retiree, state Social Security taxation typically adds $40–$80/month in taxes. For a higher-income retiree with more Social Security income, the impact scales proportionally.

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.

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

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 Couples Strategy 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