Many states do not tax Social Security, but a few still do. Here’s a list.

Social Security benefits can significantly impact the financial situations of many Americans.

Yet, there’s a catch. While these funds may help alleviate some financial burdens this year, they could inadvertently push household incomes into ranges that trigger tax obligations.

The federal government imposes taxes on Social Security income for those receiving retirement, survivor, or disability benefits, provided their total household income crosses a certain threshold. Some states also tax this income; however, in 2025, Nebraska has decided to eliminate this tax, and West Virginia will follow suit in the 2026 tax year.

Let’s break down which states continue to tax your Social Security income and how you might best manage your funds.

Does your state tax your Social Security income?

For the 2025 tax year, the following nine states will tax Social Security income:

1. Colorado: Those under 65 are exempt from state tax on the first $20,000 of benefits. If you’re over 65, there’s no tax on your Social Security income. Changes in 2025 mean those aged 55 to 64 may deduct up to $24,000.
2. Connecticut: If your adjusted gross income (AGI) is below $75,000 for singles or $100,000 for married couples, your benefits aren’t taxed. But if you exceed these limits, 25% of your benefits may be taxable.
3. Minnesota: Social Security benefits might be fully or partially exempt from state income taxes, with phase-out starting at $108,320 for married couples filing jointly and $84,490 for singles.
4. Montana: The AGI guides taxes on Social Security benefits.
5. New Mexico: Generally, most recipients are not taxed on their benefits if they earn below certain limits: under $100,000 for singles and $150,000 for married couples filing jointly.
6. Rhode Island: Taxation applies if your income is over $107,000 for singles or $133,750 for joint filers, or if you’re under full retirement age, meaning you miss a tax break.
7. Utah: Benefits are taxed if your income exceeds $54,000 ($90,000 for head of household or joint filers, and $45,000 for married couples filing separately). Below these amounts, you might qualify for a non-refundable credit on your benefits.
8. Vermont: Single taxpayers with AGI under $50,000 or joint filers with AGI under $65,000 aren’t taxed. For all others, the income cut-off for full exemption is $50,000, with a gradual phase-out thereafter.
9. West Virginia: Starting this year, all Social Security recipients may qualify for exemptions. After January 1, 2025, 65% of Social Security benefits included in federal AGI may be deductible.

Can you avoid Social Security taxes?

While Social Security benefits can really help with living expenses, encountering taxes on that money can be discouraging.

Still, there’s potential to avoid these taxes by considering a few things. First, find out if your state doesn’t tax Social Security benefits at all. In that case, you wouldn’t have to file additional paperwork.

If you reside in a state that does impose taxes, pay attention to those AGI thresholds. Tax professionals often suggest that staying below the AGI limit might help you dodge tax obligations.

Additionally, think about the timing of when you plan to start receiving Social Security benefits. If possible, some people choose to delay enrollment to maximize their benefits and sidestep taxes.

What is the SSA-1099 form and how do you obtain it?

The Social Security Administration sends you a form each January summarizing your benefits from the previous year.

This document, known as the SSA-1099, can aid in calculating your potential tax payment when you file your federal tax return.