Which States Don't Tax Your Social Security Income

Thirteen states have no tax on Social Security benefits, but the rule is more complicated than it sounds

Thirteen states do not tax Social Security benefits at any income level: Alaska, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Washington. If you live in one of these states, your Social Security income stays yours — no state income tax is owed on it. But if you live elsewhere, your state may tax part or all of your benefits, depending on your total income and filing status. The amount varies widely: some states tax Social Security only if your income exceeds a certain threshold, while others tax it the same way they tax wages.

Whether you owe state tax on Social Security matters most if you are deciding where to retire or if you are already retired and wondering why your state return asks about benefits. The thirteen no-tax states offer a real advantage, but that advantage only applies to Social Security itself — not to pensions, investment income, or wages. Understanding your state's specific rules now can help you plan withdrawals from retirement accounts and decide whether part-time work makes financial sense.

Key Takeaways

• Thirteen states impose no tax on Social Security benefits under any circumstances: Alaska, Florida, Georgia, Illinois, Kentucky, Louisiana, Mississippi, Nevada, Pennsylvania, South Dakota, Tennessee, Texas, and Washington.
• In the remaining 37 states, whether your benefits are taxed depends on your total income (including wages, pensions, and investment earnings) and your filing status.
• Some states tax Social Security only above a certain income threshold, while others tax it as ordinary income once you cross that threshold.
• If you are considering a move in retirement, state tax treatment of Social Security is one factor to weigh alongside property taxes, sales taxes, and cost of living.

How the thirty-seven states that do tax Social Security calculate what you owe

The thirty-seven states that tax Social Security benefits use different formulas, and most tie taxation to your combined income — not just your Social Security check. Combined income typically means your adjusted gross income plus tax-exempt interest plus half your Social Security benefits. Once your combined income crosses a threshold set by your state, taxation begins.

Some states tax Social Security the same way the federal government does: using two tiers. If you are single and your combined income is between $25,000 and $34,000, you may owe tax on up to 50 percent of your benefits. If your combined income exceeds $34,000, you may owe tax on up to 85 percent of your benefits. Married couples filing jointly face higher thresholds ($32,000 and $44,000). Other states use their own brackets and percentages entirely, so the amount you owe can differ significantly from the federal calculation.

A few states — including Colorado, Connecticut, and Missouri — exempt Social Security from taxation only if your total income falls below a specific threshold. Once you cross that line, all or part of your benefits become taxable. This means a small increase in other income (from a part-time job, for example) can suddenly make your entire Social Security check subject to state tax.

States with partial exemptions or income-based rules

Seven states tax Social Security but offer partial exemptions based on age or income. Colorado, Connecticut, Kansas, Missouri, Montana, Nebraska, and Utah all have rules that protect some or all of your benefits if your income stays below a threshold, or if you are over a certain age.

In Colorado, for example, Social Security is exempt if your federal taxable income is below $24,000 (single) or $32,000 (married filing jointly). In Connecticut, benefits are exempt only if your total income is below $15,000 (single) or $20,000 (married filing jointly) — one of the lowest thresholds in the country. Kansas exempts all Social Security from taxation. Montana taxes benefits but allows an exemption for residents over 65 with income below $47,000 (single) or $59,000 (married filing jointly). Nebraska and Utah also tie exemptions to income thresholds that vary by filing status.

If you live in one of these states, your state tax return will ask you to calculate your combined income and compare it to the threshold. If you are below the line, you report no Social Security tax. If you are above it, you follow your state's formula for how much of your benefits to include on your return. The threshold matters because crossing it by even a small amount can change your tax bill significantly.

What "combined income" means and why it matters

Combined income is the number that determines whether you owe tax on Social Security in most states. It includes wages, self-employment income, pensions, interest, dividends, capital gains, and rental income — plus half your Social Security benefits. This is why a retiree with a small pension and a part-time job can suddenly find their Social Security taxable, even though their Social Security check itself has not changed.

The formula works against you: the more income you have from other sources, the more of your Social Security becomes taxable. This can create a steep tax cliff. Earning an extra $1,000 in pension income might push you over a threshold and make $500 or $850 of your Social Security taxable, depending on your state. Understanding your state's specific thresholds and brackets before you retire — or before you take a part-time job — can help you plan withdrawals from retirement accounts or decide whether working makes financial sense.

How to find your state's exact rules and calculate what you owe

Your state tax agency's website has a worksheet or publication explaining Social Security taxation. Search "[your state] Social Security tax" or look for a publication titled "Social Security Benefits" or "Retirement Income" on your state's Department of Revenue or Taxation website. The worksheet walks you through calculating combined income and determining the taxable portion of your benefits.

If your state taxes Social Security, you will report it on your state income tax return, usually on a line or schedule labeled "Social Security benefits" or "retirement income." You may also owe estimated tax payments if a large portion of your income is Social Security and no tax is being withheld. Contact your state tax agency or a tax preparer if you are unsure whether you need to make quarterly payments. Some states allow you to have tax withheld from your Social Security check itself, similar to federal withholding. If you want to avoid a large bill at tax time, you can request withholding through Social Security by calling 1-800-772-1213 or visiting ssa.gov.

Moving to a no-tax state: what to consider beyond Social Security

The thirteen states with no Social Security tax are attractive to retirees, but Social Security taxation is only one piece of your overall tax picture. Some of these states have high property taxes, sales taxes, or income taxes on other types of retirement income. Florida and Texas have no state income tax at all, which benefits retirees with pensions or investment income. Alaska and Nevada also have no income tax. But Georgia, Illinois, Kentucky, Louisiana, Mississippi, Pennsylvania, South Dakota, Tennessee, and Washington do tax wages, pensions, or other retirement income — they simply exempt Social Security.

Before deciding to move, compare your total state tax burden in your current state versus a no-tax state. Factor in property taxes, sales taxes, cost of living, and whether your pension or other retirement income would be taxed. A state with no Social Security tax but high property taxes might not save you money. A tax professional or financial advisor can run the numbers for your specific situation and show you what your actual tax bill would be in each state you are considering.

Frequently Asked Questions

If I move to a state with no Social Security tax, do I have to file a return there?

No. If Social Security is your only income and you live in a state with no Social Security tax, you typically do not owe state income tax and do not have to file a state return. However, if you have other income (wages, pensions, interest), you may owe tax on that income even in a no-tax state. Check your state's filing requirements.

Does the federal government tax my Social Security?

Yes, the federal government may tax your Social Security benefits using the same combined income formula as most states. If your combined income exceeds $25,000 (single) or $32,000 (married filing jointly), up to 85 percent of your benefits may be subject to federal income tax. This is separate from state taxation.

Can I reduce my combined income to avoid Social Security taxation?

Possibly. If you have control over when you withdraw money from retirement accounts, you might time withdrawals to keep your combined income below your state's threshold. Roth conversions, charitable contributions, and other strategies can affect your taxable income. A tax professional can review your situation and suggest options.

What if I worked in one state but retired to another?

Your state of residence when you file your tax return determines which state's Social Security tax rules apply. If you moved to a no-tax state, you file there. If you moved to a state that taxes Social Security, you follow that state's rules. Your previous state of residence does not matter for Social Security taxation purposes.

Do I owe tax on my spouse's Social Security if we file jointly?

Your combined income for tax purposes includes both your benefits and your spouse's benefits. When you file a joint return, the combined income threshold is higher (usually $32,000 to $44,000 for federal tax, depending on the tier), but both spouses' benefits count toward the calculation. The tax owed is based on the household's total combined income.