Language 
States that don’t tax Social Security: 2026 guide
Most states don't tax Social Security, only a handful still do. See the full state list, and what's changing under federal law.
The large majority of states don’t tax Social Security benefits, while just 8 states still tax some benefits in 2026. Even there, exemptions, deductions or credits mean some retirees may owe little or no state tax. And because state rules are only part of the picture, it’s worth looking at federal taxes and the cost of living, too.
If you’re comparing states for retirement, knowing what states don’t tax Social Security can help narrow your options. And in this guide, we’re breaking down which states exempt Social Security, which still tax it, and how the rules work.
Social Security tax by state, at a glance
| Category | States | Count |
|---|---|---|
| No state income tax at all | Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming | 9 |
| Has income tax, but exempts Social Security | Alabama, Arizona, Arkansas, California, Delaware, 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, Wisconsin, West Virginia | 33 |
| Taxes some Social Security benefits | Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont | 8 |
Most states either have no personal income tax or specifically exempt Social Security. And even in the 8 states that tax benefits, income, age and filing status make a major difference in the final amount to be filed.
States that don’t tax Social Security
There are 42 states that don’t tax Social Security benefits in 2026. That includes 9 states with no personal income tax and 33 states that have an income tax but carve Social Security out of taxable income.
The 9 states with no personal income tax are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming. Because these states don’t impose a personal income tax, Social Security isn’t subject to state income tax there. For more on these states, see our guides to Florida taxes, and states with no income tax.
Living in a state that doesn’t tax Social Security, however, doesn’t mean your benefits are completely tax-free. US tax rules still apply at the federal level.
You don’t have to live in a no-income-tax state to keep your Social Security benefits free from state tax. Another 33 states have an income tax but exempt Social Security.
Take California, New York and Illinois. All 3 have state income taxes, but Social Security benefits aren’t subject to those state taxes. California excludes Social Security benefits from state taxable income, while New York allows federally taxable Social Security benefits to be subtracted when calculating New York income. Illinois also exempts Social Security benefits from its state income tax.
When comparing states that tax Social Security with those that don’t, it’ll also help to consider the cost of living across the US because housing, healthcare, groceries and other everyday expenses can have a bigger effect on your retirement budget.
States that tax Social Security
In 2026, 8 states still tax at least some Social Security benefits.
- Colorado: Residents 65 and older can subtract federally taxable Social Security benefits.
- Connecticut: Social Security is fully exempt below specified AGI thresholds, with partial relief available above those thresholds.
- Minnesota: A Social Security subtraction can eliminate state tax on benefits for qualifying taxpayers below income thresholds.
- Montana: Montana calculates taxable Social Security using its own state rules, which can produce a different taxable amount from the federal calculation.
- New Mexico: Social Security is exempt for taxpayers below specified AGI thresholds, including $100,000 for single filers and $150,000 for joint filers.
- Rhode Island: A modification is available for taxpayers who have reached Social Security full retirement age and meet the state’s income limit.
- Utah: A Social Security tax credit reduces the state tax attributable to taxable benefits, with the credit phasing out above income thresholds.
- Vermont: Eligible taxpayers can deduct all or part of federally taxable Social Security benefits, with the exemption depending on AGI and filing status.
Is Social Security taxed at the federal level?
Yes. Living in one of the states that don’t tax Social Security does not automatically make your benefits tax-free. Federal rules still apply.
The IRS looks at your combined income, which is your adjusted gross income plus tax-exempt interest and half of your Social Security benefits. Above the applicable thresholds, up to 85% of your benefits can be included in taxable income. For example, the base amount is $25,000 for single filers and $32,000 for married couples filing jointly.
Will Social Security stop being taxed in 2026?
No, Social Security will not stop being taxed in 2026. The 2025 federal tax law, commonly called the One Big Beautiful Bill Act, created a $6,000 senior deduction for taxpayers age 65 and older for tax years 2025 through 2028. A married couple filing jointly can potentially claim $12,000 when both spouses qualify. The deduction begins phasing out above $75,000 of modified adjusted gross income for single filers and $150,000 for joint filers.
There is a proposed legislation called the You Earned It, You Keep It Act, which would remove Social Security benefits from federal gross income. It has been introduced in Congress but has not become law. So, for now, you should calculate your federal tax using the rules in effect.
Stay connected wherever you retire with Holafly
Retirement doesn’t mean staying in one place. You might spend part of the year at home, winter somewhere warmer or take longer international trips while keeping your primary residence in the US.
For a short trip, a destination-specific eSIM can provide mobile data without changing your regular phone setup. If you’re spending several months abroad or splitting your time between countries, Holafly Plans offers connectivity across 160+ destinations, with Unlimited and Light plans depending on how much data you need. The Unlimited plan also includes a local US, UK or Canada number, which can make it easier to stay reachable and manage banking services back home.
Both Holafly eSIMs and Plans come with Always On, providing 1GB of free backup data every 30 days for essential tasks when your main plan is no longer active. Plus, 24/7 multilingual support is available if you need help along the way.
FAQs: States that don’t tax Social Security
What state is best to live in on Social Security?
There isn’t one answer based on Social Security tax alone. A state with no tax on Social Security can still have higher housing, property, sales or other costs, so compare the full retirement budget before deciding where to move. Our guide to the best places to retire in the US looks at the broader picture.
Do states that tax Social Security also tax pensions and 401(k) withdrawals?
Not necessarily. States set their own rules for Social Security, pensions, annuities, IRAs and 401(k) withdrawals, so one exemption does not automatically apply to every type of retirement income. Check each state’s rules for the specific income sources you expect to use.
Sources and methodology
State rules were checked for the 2026 tax year using current state guidance and cross-checked against national retirement-tax references. Federal rules were verified through IRS guidance. The state count was verified on September 29, 2026.
- IRS guidance for seniors and the 2025–2028 enhanced senior deduction
- IRS guidance on federal taxation of Social Security benefits
- AARP’s 2026 overview of states that tax Social Security
- West Virginia Tax Division’s Social Security modification
- Federation of Tax Administrators’ directory of state tax agencies
Plans that may interest you
With an MBA degree I used to put to good use in another life, I now write for both passion and profession! When not writing, I'm exploring the world, collecting stories and souvenirs along the way.
