West Virginia Stopped Taxing Social Security. These 8 States Still Do
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The list of states taxing Social Security has dwindled to eight after West Virginia became the latest to axe its taxation of benefits.
On Jan. 1, the Mountain State's Social Security tax was fully terminated, capping off a three year phase-out process.
The remaining eight states taxing the benefits continue to face pushback from residents and advocacy groups like AARP. In 2025, lawmakers in all of those states introduced legislation to end or limit the taxation of Social Security benefits. However, many of these efforts stalled out or failed to pass.
In addition to West Virginia ending its tax, Vermont and Utah governors signed bills last year increasing their income thresholds for state Social Security taxes, shielding more taxpayers from having to pay.
Here are the states still taxing Social Security benefits in 2026:
Colorado
Whether a beneficiary has to pay state taxes on their Social Security benefits in Colorado largely depends on their age and income level. Two state lawmakers introduced a bill to reduce these taxes in February, but the effort quickly failed.
For the 2026 tax year, Coloradans ages 55 to 64 with adjusted gross incomes up to $75,000 for single filers or $95,000 if filing jointly can deduct Social Security benefits on their state taxes. But higher earners in that age group — and some younger beneficiaries — must pay taxes on their benefits.
Connecticut
Taxpayers with incomes over $75,000 for single filers (or $100,000 for couples) face partial taxes on their Social Security benefits. No more than 25% of a taxpayer's benefits can be subject to taxes, though, limiting the burden.
An act to eliminate the income thresholds to qualify for the Social Security tax exemption was introduced in the Connecticut General Assembly last January. It was referred to a committee and did not advance.
Minnesota
Residents are exempt from state taxes on benefits if their incomes are $108,320 or less for couples or $84,490 or less for single filers (as of tax year 2025). That still leaves about 29% of beneficiaries who must pay state taxes on benefits.
Minnesota lawmakers introduced bills to end these Social Security taxes early last year. However, the state estimated it could cost nearly $400 million per year to fully end this taxation, and those bills did not advance out of tax committees.
Montana
In Montana, taxpayers with adjusted gross incomes over $32,000 for married couples or over $25,000 for individuals are subject to state taxes on Social Security benefits. Up to half of an individual's Social Security income is taxable if their adjusted gross income falls between $25,000 and $34,000.
A state lawmaker's bill that aimed to repeal this tax failed in May.
New Mexico
New Mexico significantly reduced its taxes on Social Security benefits in 2022, but it stopped short of eliminating them. Single filers earning under $100,000 and married couples earning under $150,000 can fully deduct Social Security payments from their taxable income.
Gov. Michelle Lujan Grisham stated in an August news release that "approximately 86% of New Mexico seniors" do not pay taxes on benefits.
Last February, House Bill 293, which would have removed the income cap for the state's exemption, was postponed indefinitely despite reaching 15 sponsors.
Rhode Island
Social Security benefits are not taxed if residents have reached the full retirement age of 67 and earn less than the income threshold to qualify for the exemption, which was $107,000 for single filers as of tax year 2025.
Several bills were introduced last year to end or phase out the state's taxation of benefits for higher earners, though none were successful.
Vermont
Lawmakers in Vermont expanded the state's exemption last year, with Gov. Phil Scott signing Senate Bill 51 in June.
It raised the threshold for a complete exemption to $55,000 for single filers, an increase of $5,000. The bill also expanded eligibility for a partial exemption to individuals with incomes up to $70,000.
Utah
Gov. Spencer Cox signed Senate Bill 71 in March, revising state Social Security taxes in Utah.
Residents are now fully exempt from tax on Social Security benefits if their adjusted income is under $54,000, which is an increase from $45,000 before. For married couples filing jointly, the threshold shifted from $75,000 to $90,000.
The change helps "an estimated 90,000 Utah seniors keep more of their hard-earned income," according to a release from Cox.
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