The eight states that tax Social Security in 2026
West Virginia finished phasing out its tax on benefits in 2026, which leaves eight. Most of them exempt typical retirees through an income limit or a credit, so the list overstates who pays.
| State | The rule | Limits indexed? |
|---|---|---|
| Colorado | All federally taxable benefits subtracted at 65. At 55 to 64, all of them at federal AGI up to $75,000 single or $95,000 joint, otherwise up to $20,000. Under 55, taxed. | No |
| Connecticut | Fully exempt at federal AGI under $75,000 single or $100,000 joint. Above that, no more than 25% of benefits is taxable. | No |
| Minnesota | Fully subtracted at AGI up to $86,410 single or $110,780 joint (2026). The subtraction falls 10% for each $4,000 above and is gone $36,000 over; a smaller alternate subtraction can apply instead. | Yes |
| Montana | Taxes the federally taxable amount, starting from federal taxable income. The only relief is the general subtraction for people 65 or older (about $5,660 each). | The age subtraction is |
| New Mexico | Fully exempt at federal AGI up to $100,000 single or $150,000 joint. Above that, a cliff: no exemption. | No |
| Rhode Island | Fully subtracted at full retirement age when federal AGI is under $107,000 single or $133,750 joint (2025 figures; 2026 due in November). A cliff above that. From 2027 the age test goes. | Yes |
| Utah | Taxes benefits but gives a credit of 4.45% of taxable benefits, reduced by 2.5 cents for each dollar of income over $54,000 single or $90,000 joint. | No |
| Vermont | Fully exempt at AGI up to $55,000 single or $70,000 joint, phasing out over the next $10,000; none exempt at $65,000 or $80,000. | No |
Who actually pays: three retirees
Federal AGI and the federally taxable part of the benefits come from Killion’s 2026 tax engine; each state’s rule is then applied to them. “Partly” means some of the benefit stays taxable after the state’s exemption or credit.
| State | Single, 67: $24,000 of benefits and $20,000 from an IRA (AGI $23,500) | Single, 67: $30,000 of benefits and $70,000 from an IRA (AGI $95,500) | Married, both 67: $48,000 of benefits and $100,000 from IRAs (AGI $140,800) |
|---|---|---|---|
| Colorado | No | No | No |
| Connecticut | No | Partly | Partly |
| Minnesota | No | Partly | Partly |
| Montana | No | Yes | Yes |
| New Mexico | No | No | No |
| Rhode Island | No | No | Yes |
| Utah | No | Partly | Partly |
| Vermont | No | Yes | Yes |
The 42 states and DC that do not tax Social Security
No income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming.
Income tax, but Social Security is exempt: Alabama, Arizona, Arkansas, California, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia, West Virginia, Wisconsin.
Exempting Social Security is not the same as exempting retirement income. Each state page above covers how that state taxes IRA withdrawals, pensions and military pay.
Federal tax still applies
Whatever your state does, up to 85% of benefits can be federally taxable, depending on half your benefits plus your other income. The salary pages show the federal tax on a typical benefit: for example Social Security if you make $75,000 or if you make $100,000. The retirement tax calculator works out the federal tax on your own benefits; its state figures follow each state’s rules, but the income tests in Connecticut, Minnesota, Montana, New Mexico, Rhode Island and Vermont are not modeled there yet, so for those states use the rules above.
Figures checked on against Connecticut OLR, states that tax Social Security (2026-R-0106) (PDF), West Virginia State Tax Department, Social Security modification, Colorado DOR, Social Security, pensions and annuities (PDF), Connecticut DRS, tax tips for seniors, Minnesota Revenue, Social Security benefit subtraction, Montana DOR, Form 2 changes (PDF), New Mexico PIT-ADJ instructions (2025) (PDF), Rhode Island Division of Taxation, 2025 inflation adjustments (PDF), Utah State Tax Commission, Social Security benefits credit, Vermont Department of Taxes, Social Security exemption and IRS Publication 915, Social Security and equivalent railroad retirement benefits.