States That Tax Social Security Benefits in 2026

States That Tax Social Security in 2026

State taxation of Social Security depends on state statutes rather than federal brackets alone. The Connecticut Office of Legislative Research report 2026-R-0106 confirms that eight states tax some benefits for tax year 2026.

Full Exemption Below an Income Line

Four states apply a straightforward income cut-off to determine who pays tax on benefits. In Connecticut, New Mexico, Vermont, and Minnesota, staying under a statutory income limit protects your entire check from state tax.

Under guidelines from the Connecticut Department of Revenue Services, your benefits are fully exempt if your federal AGI is under $75,000 as a single filer or married filing separately (MFS). The threshold is under $100,000 for joint filers, heads of household (HOH), and qualifying surviving spouses. If your income exceeds those caps, Connecticut caps the taxable portion at 25% of your benefits.

New Mexico offers complete relief up to higher dollar amounts. According to the New Mexico Taxation and Revenue Department, taxpayers with income under $100,000 for single filers pay zero state tax on benefits. Married couples filing jointly, heads of household, and surviving spouses owe nothing if income remains under $150,000. For married individuals filing separately, the threshold is $75,000. Filers who earn above these limits receive no exemption on their benefits.

Vermont uses a hard phase-out window. Under Vermont Statutes Title 32 Section 5830e and Vermont Department of Taxes guidelines, single filers, heads of household, and married individuals filing separately get a full exclusion at an AGI of $55,000 or less. The exclusion phases out proportionally between $55,000 and $65,000. No exclusion remains at $65,000 or higher. For joint filers, the full exclusion applies at $70,000 or less, phasing out up to $80,000, with zero exclusion above $80,000.

Minnesota establishes both an income-based subtraction and an alternative calculation. The Minnesota Department of Revenue provides a full subtraction for 2026 below set income limits. According to Minnesota Department of Revenue inflation adjustments, the 2026 threshold is $110,780 for married couples filing jointly. It is $86,410 for single filers or heads of household, and $55,390 for married filers filing separately. The subtraction drops by 10% for each $4,000 of AGI over the threshold, or $2,000 for MFS. Minnesota also maintains an alternative method that permits a maximum subtraction of $5,840 for joint filers, $4,560 for single or head of household filers, and $2,920 for married filing separately.

Age-Based Rules for Benefit Taxes

Two states use your age as a primary gatekeeper for tax relief. Colorado and Rhode Island combine age requirements with income tests to determine liability.

Colorado enacted major revisions through House Bill 24-1142. Starting in tax year 2025 and continuing into 2026, taxpayers age 65 and older can subtract all federally taxable Social Security benefits on their state return. For individuals ages 55 to 64, the full subtraction applies only if AGI is $75,000 or less for single filers, or $95,000 or less for joint returns. If a filer between 55 and 64 earns more than those limits, their combined pension and Social Security subtraction cannot exceed $20,000.

Rhode Island links taxability to your full retirement age under federal law. Based on Rhode Island Division of Taxation Advisory 2025-22, benefits remain exempt only if the taxpayer has reached Social Security full retirement age and their federal AGI sits below an inflation-adjusted limit. For single filers, heads of household, and married individuals filing separately, the 2025 threshold was $107,000. Rhode Island had not published its 2026 thresholds as of this writing. A Rhode Island 2026 legislative summary notes that a budget law eliminates the full-retirement-age requirement beginning in tax year 2027.

Credits and Partial Taxation

Utah and Montana approach benefit taxation differently from other jurisdictions. Rather than using an upfront income exclusion for all filers, they use tax credits or senior deductions.

Utah includes Social Security benefits in state taxable income. However, Utah Code Section 59-10-1042 provides a nonrefundable Social Security benefits credit. This credit equals the state tax rate multiplied by the benefits included in Utah taxable income. The credit shrinks by 2.5 cents per dollar of modified AGI above $54,000 for single filers. The phase-out begins above $90,000 for joint filers or heads of household, and above $45,000 for married individuals filing separately. Higher earners gradually lose the credit and pay state tax on their benefits.

Montana taxes the exact portion of benefits included in your federal taxable income. According to the Montana Department of Revenue Form 2 instructions, Montana adopted this approach starting in tax year 2024. Montana does not use an income-based phase-out for Social Security. Instead, taxpayers age 65 and older receive an inflation-adjusted senior subtraction. For 2024, that subtraction stood at $5,500, or $11,000 if both joint filers were 65 or older. The subtraction adjusts annually for inflation from 2025 onward. Taxpayers deduct this amount from their Montana income to offset taxable income.

West Virginia Benefit Exemption in 2026

West Virginia no longer taxes Social Security. State lawmakers phased out the tax over multiple legislative sessions.

According to the West Virginia State Tax Department, Social Security benefits become 100% exempt from state income tax starting in tax year 2026. For tax year 2025, higher earners still faced partial state liability. Filers with an AGI above $50,000 for single returns or $100,000 for joint returns could exempt only 65% of their benefits in 2025. That limitation has expired. All qualifying benefits earned by West Virginia residents are now completely protected from state income taxation.

Popular States That Do Not Tax Benefits

Most states do not tax Social Security checks. Relocating retirees often look at large, popular states to see whether moving will trigger a tax bill.

Under the California Franchise Tax Board, California excludes Social Security benefits from taxable personal income. The Pennsylvania Department of Revenue lists Social Security payments as income that is never taxable. In New York, the New York State Department of Taxation and Finance allows taxpayers to subtract any Social Security income included in their federal AGI. The New Jersey Division of Taxation lists Social Security as exempt income that you do not report on your state return. Massachusetts excludes Social Security payments from gross income, according to its FY27 tax expenditure budget.

If you retire to any of these states, your monthly Social Security benefit bypasses state tax entirely.

Interaction With Federal Social Security Taxation

State tax rules operate independently from federal brackets. Federal law taxes Social Security using a specific calculation called provisional or combined income. Detailed in IRS Publication 915, your combined income equals your adjusted gross income, nontaxable interest, and half of your annual Social Security benefits.

Federal thresholds dictate whether you pay federal tax on your benefits. At the federal level, combined income determines whether none, up to 50%, or up to 85% of your benefits count as taxable income. Our guide to whether Social Security is taxable walks through the federal formula.

Even when the federal government taxes 85% of your benefits, your state return still follows its own completely separate rulebook. Filers in California or Pennsylvania still include benefits on their federal Form 1040. When filing state paperwork, however, none of that federally taxed amount is taxed on your state return.

Montana works differently. It taxes the federally taxable portion of benefits and gives filers 65 and older a senior subtraction. Retirees can see how other tax laws treat older filers in our guide to capital gains tax for seniors or read how the $6,000 senior deduction works on your federal return.

State Revenue Rule Checks Before Relocating

State rules on Social Security change often, so confirm current rules with your state revenue department before you file or move; each state's rule page is linked in the sections above. A state that taxes benefits today may phase that tax out, as West Virginia did for 2026. Weigh living expenses, sales taxes, and local property taxes alongside benefit taxation. Model your projected income in our retirement income calculator to see cash flow after taxes. Check your expected monthly benefit with our Social Security retirement calculator, and find more planning tools in our retirement planning resources.

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