These 9 states tax Social Security benefits. Here's what to know.
- - These 9 states tax Social Security benefits. Here's what to know.
Andrea Riquier, USA TODAYDecember 19, 2025 at 2:06 AM
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Is Social Security taxable?
Yes, the federal government will take a cut of Social Security, which can include monthly retirement, survivor and disability benefits, if total income exceeds certain amounts. But recipients also need to pay attention to rules and procedures at the state level.
This year, nine states will levy a tax on Social Security. Though each state has different rules, your age and income usually determine whether you need to pay.
It’s best to check with your state’s rules, but here are general guidelines on what you can expect:
Which states tax Social Security benefits?
Colorado: Taxpayers 65 and older can subtract the full amount of their Social Security benefits in Colorado. Those ages 55-64 can deduct all Social Security benefits if their adjusted gross income is $75,000 or less for an individual or $95,000 or less for a couple filing jointly. If you make more than those amounts, you can deduct up to $20,000 in Social Security income.
Connecticut: Taxpayers in Connecticut can deduct all Social Security benefits if their adjusted gross income is $75,000 or less for an individual or $100,000 or less for a couple filing jointly. If you make more than those amounts, no more than 25% of your benefits will be taxed.
Minnesota: Social Security benefits are fully exempt in Minnesota for married taxpayers filing jointly who make $108,320 or less; single or head of household taxpayers who make $84,490 or less; and married taxpayers filing separately who make $54,160 or less. There is some tax on benefits for married taxpayers who make $108,321 to $144,320; singles or heads of household who make $84,491 to $120,490; and married taxpayers filing separately who make $54,161 to $72,160. Above those thresholds, all federally taxable benefits are also subject to state tax.
Some states tax Social Security income. Is yours one of them?
Montana: For single taxpayers with an adjusted gross income of less than $25,000 and joint filers with an AGI of less $32,000, all Social Security retirement income is deductible in Montana. For taxpayers above those limits, a portion of Social Security income is deductible.
New Mexico: Single taxpayers with incomes below $100,000, married filing jointly couples earning less than $150,000 and married filing separately couples below $75,000 are exempt from Social Security tax.
Rhode Island: Social Security benefits are fully exempt in Rhode Island for married taxpayers filing jointly and making $130,250 or less; single or head of household taxpayers making $104,200 or less; and married taxpayers filing separately and making $104,225 or less
Vermont: Social Security benefits are fully exempt in Vermont for married taxpayers filing jointly and making $65,000 or less. For all other filers, the maximum is $50,000. For married taxpayers filing jointly making above $65,000 but below $75,000, there is some tax, and above that, there is no exemption. For all other filers making more than $50,000 but less than $60,000, there is some exemption. Those filers making more than $60,000 receive no exemption.
West Virginia: If your income hits $100,000 or more for couples filing jointly or $50,000 or more for single filers, at least some of your benefits may be taxed. By next year, West Virginia will not tax Social Security benefits at all. In the 2025 tax year, taxpayers with adjusted gross income of more than $50,000 – more than $100,000 if filing jointly – can subtract 65% of their benefits from their income.
How do states tax Social Security?
In general, there are a few ways states tax Social Security:
According to age: For example, Coloradans under 65 may owe taxes on Social Security benefits, but taxpayers older than that generally don't.
According to income: New Mexico is one example of a state that taxes Social Security only for income above a certain threshold.
Taxable income includes Social Security benefits. Recipients in some states qualify for a Social Security income subtraction when filing their state tax return.
How much can you make from Social Security before paying taxes?
The best way to avoid taxes on Social Security benefits is to limit your income by investing with a Roth IRA while saving. Roth IRA withdrawals aren’t counted as taxable income; they are tax-free. The same goes for withdrawals from health savings accounts (HSAs) to pay for qualified expenses.
If you had a high-deductible health insurance plan, contributed and invested money in an HSA and kept your qualified medical receipts, you can use those receipts against any withdrawal, tax-free.
Another option is to lobby your state legislature to eliminate its tax on Social Security, which has been a national trend for several years.
This article originally appeared on USA TODAY: Nine states tax Social Security benefits. What to know.
Source: “AOL Money”
