These 8 States Will Charge You Taxes on Your Social Security in 2026
- - These 8 States Will Charge You Taxes on Your Social Security in 2026
Lee HuffmanFebruary 3, 2026 at 3:07 AM
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When planning for retirement, you probably assumed your Social Security benefits would be safe from state taxes. For most retirees, that assumption is correct. The majority of U.S. states do not tax Social Security benefits at all.
However, nine states tax Social Security benefits for the 2025 tax year, though one will fully phase out the tax for income earned in 2026. As you start to file 2025 tax returns and plan for 2026 taxes, those rules could catch some retirees off guard if they're not paying attention.
If you rely on Social Security as part of your retirement income strategy, understanding where your benefits may be taxed and why it matters can help you protect more of your monthly check.
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How state taxes on Social Security work
State taxation of Social Security varies depending on the state you live in. In states that still tax benefits, whether you owe taxes may depend on one or more of these factors:
Your total income
Your filing status (single vs. married)
Your age
Whether the state offers exemptions, deductions, or income thresholds
Some states tax only a portion of benefits, while others exempt lower-income retirees entirely. That's why two retirees receiving the same Social Security check can face very different tax outcomes depending on where they live and other sources of income they may have.
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States that will tax Social Security in 2026
For tax year 2025, the following states still tax Social Security benefits in some form. They are expected to continue doing so for the income received in 2026 unless new legislation is passed.
Colorado
Colorado charges a flat 4.4% state tax on all taxable income. However, taxpayers 65 and older can deduct all of their federally taxed Social Security benefits. Retirees ages 55 to 64 have income caps for this deduction, depending on whether they file as single or married filing jointly.
Connecticut
Social Security taxes may be owed based on your adjusted gross income and filing status. Retirees whose income is below the threshold don't pay any state income taxes. If your income is above the limit, no more than 25% of your Social Security benefits are taxed.
Minnesota
Minnesota offers income-based exemptions that phase out as your income grows. For every $4,000 ($2,000 for married filing separately) you make above the threshold, the deduction shrinks by 10%. Minnesota also offers an alternative method to claim a state income tax deduction based on your filing status, gross income, tax-exempt interest, and half of your Social Security benefits.
Montana
Montana taxes Social Security benefits for higher-income retirees, using federal taxable income as a starting point. For tax year 2026, the state's top income tax rate is 5.65%. Taxpayers age 65 and older can subtract up to $5,500 from taxable income, but higher-income retirees may still owe state taxes on a portion of their benefits.
New Mexico
New Mexico offers income-based exemptions that allow most retirees to avoid taxes. If you earn less than $100,000 as a single filer or $150,000 for joint filers, you won't owe state income taxes.
Rhode Island
Rhode Island retirees who have reached full retirement age won't owe state income taxes on Social Security benefits. For retirees below full retirement age, state taxes apply when your adjusted gross income is above $107,000 as a single filer or $133,750 for married filing jointly. Depending on how much tax you would owe, this may be another reason to delay filing for Social Security benefits.
Utah
Utah taxes income at a flat 4.5% rate, but you may reduce or eliminate the tax based on the state's Social Security Credit Worksheet. Retirees can choose between this credit, a Military Retirement Credit, or a flat credit of $450.
Vermont
Vermont uses income thresholds and filing status to determine whether benefits are taxed. The state's income threshold is much lower than that of some others on this list, which results in a higher tax burden for middle-income retirees. Single filers receive a full exemption with an adjusted gross income of $55,000 or less, while married filing jointly qualify with income up to $70,000. The exemption phases out over the next $10,000 in income.
West Virginia (for 2025, but not 2026)
West Virginia has eliminated Social Security taxes for the 2026 tax year. While you may still owe state taxes for money you made in 2025, you won't owe state taxes for Social Security benefits on your 2026 tax returns.
Why this matters to your retirement income
Even paying a modest amount of state taxes can make a meaningful difference over time. For example, compare two retirees living in different states who receive $24,000 in annual Social Security benefits. The senior living in a non-taxing state keeps the full amount, but the other one lives in a state that taxes benefits 3% to 5%.
The retiree whose benefits are taxed could be losing several hundred dollars per year. Over a 20 to 30-year retirement, those taxes can add up to thousands of dollars that could have been used to cover health care, housing, travel, or other monthly expenses.
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What you should check before filing
Rather than trying to guess whether these tax rules apply to you, follow these practical steps:
Confirm your state's income thresholds and exemptions
Review how marital status affects taxation
Watch for legislative changes ahead of the 2026 tax filing season
Understand whether other income sources (pensions, withdrawals, part-time work) could trigger taxation
The goal isn't to avoid taxes, but to ensure you're not surprised when filing your tax returns.
If you live in one of the states that taxes Social Security benefits, evaluate whether you should reduce your income to stay under the limit, bunch tax deductions to reduce taxable wages, or make retirement plan contributions to lower your adjusted gross income.
Bottom line
Social Security is one of the most reliable income sources in retirement. But your bank account could take a hit if your benefits are subject to state taxes. By understanding which states tax Social Security in 2026 and how those rules work, you put yourself in a stronger position to protect more of your hard-earned benefit dollars. This information can help you make informed decisions about your retirement plan and where you should live in retirement.
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