Which States Tax Social Security Benefits?

A new report analyzes how each state taxes (or does not tax) Social Security income.

A recent report from the Tax Foundation explains which states do and do not tax income from Social Security.

The map below from the Tax Foundation summarizes how each state’s Social Security taxes work.

ona, Colorado, Delaware, Georgia, Idaho, Illinois, Massachusetts, New York, Ohio, Oklahoma, South Carolina, and Virginia.

Utah and Nebraska tax Social Security income in the same way as the federal government.

Some states offer exemptions on taxes levied on Social Security income. The Tax Foundation says in its report:

Connecticut excludes Social Security benefits from income calculations for any taxpayer with less than $75,000 (single filers) or $100,000 (filing jointly) in adjusted gross income (AGI).

Kansas provides an exemption for such benefits for any taxpayer whose AGI is $75,000, regardless of filing status.

Minnesota provides a graduated system of Social Security subtractions which kick in if someone’s provisional income is below $81,180 (single filer) or $103,930 (filing jointly).

Missouri allows a 100 percent Social Security exemption as long as the taxpayer is 62 or older and has less than $85,000 (single filer) or $100,000 (filing jointly) in annual income.

North Dakota allows taxpayers to deduct taxable Social Security benefits if their AGI is less than $50,000 (single filer) or $100,000 (filing jointly).

Rhode Island allows a modification for taxpayers who have reached full retirement age as defined by the Social Security Administration and have a federal AGI of under $81,900 (single filer) or $102,400 (filing jointly).

Vermont provides a graduated system of Social Security exemptions which kick in if a taxpayer’s income is below $34,000 (single filer) or $44,000 (filing jointly).

West Virginia currently taxes Social Security income, but under a new law, it is gradually being phased out, and it will be completely exempt from state taxes beginning in 2022.

About the Author

Ian Smith is one of the co-founders of FedSmith.com. He enjoys writing about current topics that affect the federal workforce.