GoBankingRates recently reported, 41 US states it is No taxes on Social Security benefits in 2025. missouri and Kansas If we choose to stop taxing benefits in 2024, what remains is 9 states It would continue the tax benefits offered by unions. Social Security Administration (SSA) To the people of the United States. Knowing which states will tax Social Security benefits in 2025 is very important. It will help you know if you need to send money to. us government Gain greater control over your finances. That's why today we'll list each state that offers tax benefits.
List of states that tax SSA benefits
- colorado: In 2025, Colorado will continue to tax Social Security benefits. However, note that beneficiaries between the ages of 55 and 64 with an adjusted gross income of less than $75,000 (single) or $95,000 (married filing jointly) can fully deduct any benefits subject to federal tax. please.
- connecticut: Connecticut has a similar exemption policy as Colorado. This means that benefits are not tax-adjusted for single taxpayers with adjusted gross income (AGI) of less than $75,000. The same applies to married taxpayers filing jointly, but their income must be less than $100,000 to qualify.
- minnesota: Minnesota will also waive taxes on Social Security benefits in 2025. Married taxpayers with an AGI of less than $105,380 or individuals with an AGI of less than $82,190 pay no tax.
- montana: For single filers with adjusted gross income of less than $25,000, all benefits available to Social Security citizens are tax deductible. On the other hand, if you are a joint filer, your AGI must be less than $32,000.
- new mexico: New Mexico eliminated taxes on Social Security benefits in 2025. Benefiting from this exemption are individual beneficiaries with annual incomes of less than $100,000 and married filers with annual gross incomes of less than $150,000.
- rhode island: Individuals in Rhode Island who earn less than $88,950 in AGI may collect state tax on their benefits. The same is true for married couples with annual incomes of less than $111,2000.
- Utah: If you file as a single person in Utah and your annual income is less than $30,000, your Social Security benefits are tax-free. The same applies to couples with annual incomes of less than $50,000.
- vermont state: In Vermont, married couples with incomes under $65,000 are exempt from paying taxes on their Social Security benefits. For singles filing individually, the limit is set at $50,000 per year.
- west virginia: West Virginia will phase out the state income tax on Social Security benefits. However, thanks to recently passed legislation, this is expected to happen within three years. Currently, individuals with annual incomes of less than $50,000 and joint filers with incomes of less than $100,000 are exempt. The phase-out will begin with taxes in 2024, with a 35% tax cut. In 2025, the reduction rate will be 65%, and starting in 2026, Social Security taxes will be completely abolished.
Additional analysis for 2025 of states taxing or exempting Social Security benefits
Determination of states to tax or exempt Social Security Benefits in 2025 is based on factors such as revenue collection, tax competitiveness, and retiree demographics. Many states seek to attract older adults with tax incentives because they contribute significantly to local economies through goods and services. At the same time, some state governments believe that by maintaining taxes on Social Security benefits, they can maintain basic necessities. public programsespecially in areas such as healthcare and infrastructure. This is relevant in situations of inflation and financial instability, where it is important to have a reliable revenue base. Additionally, states are carefully analyzing the balance between tax burden and retention of retired residents, as an exodus of older taxpayers could have negative long-term fiscal consequences. economical growth.
