9 States That Still Tax Social Security Benefits
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Although millions of Americans do not have to pay taxes on their hard-earned Social Security checks, federal and state tax laws can effectively reduce the payments retirees receive. Nine states still tax Social Security benefits in 2025, but that number could continue to shrink, with Utah emerging as the latest state to consider ending its tax.
It's an ongoing movement. While campaigning last year, President Donald Trump promised to end federal taxes on Social Security, which are paid by about 40% of the roughly 70 million people who receive monthly benefits. However, he will need Congress's help to make good on that promise, whereas states get to set their own agenda.
State taxes on Social Security benefits are also being scrutinized. There's been a trend away from them in recent years, led by critics who say these taxes unfairly chip away at benefits Americans earned and deserve. They also argue that eliminating or reducing state taxation of Social Security would help older adults deal with the cost-of-living crisis. After years of higher-than-normal inflation, millions of beneficiaries are struggling to afford everyday essentials, and nearly a third of retired Americans say they have been thinking about going back to work.
Those arguments have been persuasive in many parts of the country. Most recently, Kansas and West Virginia passed laws last year to eliminate or phase out their taxes on Social Security benefits.
And now Utah Gov. Spencer Cox, a Republican who was re-elected in November, is pushing to to end the state's tax on Social Security benefits. According to the Salt Lake Tribune, Cox views his efforts to end all taxation of benefits in Utah as his "most popular proposal" in years, as it could save certain households nearly $1,000 per year. Currently, some Social Security benefits in Utah are taxable at the state's 4.55% income tax rate (though there is a tax credit completely offsetting that for lower-income households).
If lawmakers in Utah approve the change in their upcoming 2026 budget process, it would leave just a smattering of states with laws that tax benefits. Beyond Utah, here's where Social Security is still taxed in 2025:
Colorado
While Colorado has a state income tax of 4.4%, only some Social Security recipients pay taxes on their benefits. Individuals 65 and older can deduct Social Security for state tax purposes. As of 2025, taxpayers between 55 and 64 whose income falls under certain thresholds can deduct Social Security. Some younger beneficiaries must pay taxes on their benefits.
Connecticut
Retirees in Connecticut only pay state taxes on Social Security benefits if their adjusted gross income is over $75,000 for individuals or over $100,000 for couples. Even still, 75% of benefits are exempt from state taxes.
Minnesota
In Minnesota, married couples filing jointly avoid taxes if their income falls below $108,320 (For single filers, the cutoff is $84,490.) While higher-income Minnesotans are still subject to taxes, some state lawmakers are actively working to try to end all taxation of benefits.
Montana
Montanans with incomes over $32,000 for married couples or over $25,000 for individuals are subject to state taxes on Social Security benefits. (Deductions are available to higher-income taxpayers.) A 2023 attempt to end this taxation was unsuccessful.
New Mexico
Most New Mexico taxpayers avoid state taxes on Social Security since lawmakers passed legislation in 2022 allowing single residents earning under $100,000 and married couples earning under $150,000 to fully deduct Social Security payments from their taxable income. Retirees with incomes above those thresholds are subject to income tax ranging from 1.7% to 5.9%, including on Social Security benefits.
Rhode Island
In Rhode Island, residents avoid taxes on Social Security if they've reached the full retirement age and their income is below a certain amount ($104,200 for single filers as of 2024). Other retirees will pay income taxes, which range from 3.75% to 5.99%, on their benefits.
Vermont
Individual taxpayers in Vermont are typically not subject to taxes on benefits if their income is below $50,000. For married couples, the threshold is $65,000. But for people earning above those amounts, state taxes quickly begin to kick in and are fully in effect for individuals earning over $60,000 and couples over $75,000. A bipartisan group of lawmakers is pushing to increase the income thresholds for the state's Social Security tax.
West Virginia
Taxes on Social Security benefits in West Virginia will be eliminated soon. Higher-earning beneficiaries subject to these taxes have already seen them reduced by 65% under a bill signed last year. These taxes are being phased out completely by 2026.
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