Which States Tax Social Security Benefits in 2026?

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Federal income tax is not the only tax rule that can affect Social Security retirement benefits. State income-tax treatment also matters, although most states do not tax Social Security benefits.

For 2026, eight states may tax at least part of federally taxable Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Each state has its own exclusions, credits, age rules, income limits, and filing requirements.

This issue is separate from the federal rules explained in Is Social Security Taxed? Federal Tax Rules and Planning Considerations. It is also separate from the Social Security Earnings Test, which can temporarily reduce benefits for people who work before Full Retirement Age.

United States Capitol representing state tax rules for Social Security benefits

State tax treatment of Social Security benefits depends on where you are a resident and on your total income.

Important Note

A state may begin with the federally taxable portion of Social Security benefits, then apply its own subtraction, exemption, or tax credit. Do not assume that federal tax treatment automatically determines your state tax bill.

1. States That May Tax Social Security Benefits in 2026

State General 2026 Treatment
Colorado Residents age 65 or older can generally subtract all federally taxable Social Security benefits. Taxpayers ages 55 to 64 may also qualify for a full subtraction when federal AGI does not exceed $75,000 for single filers or $95,000 for joint filers. Other limits can apply.
Connecticut Federally taxable benefits are fully exempt below Connecticut income thresholds of $75,000 for single or married filing separately and $100,000 for joint, qualifying surviving spouse, or head of household filers. A partial exemption may apply above those levels.
Minnesota Minnesota offers a subtraction for qualifying taxpayers. For tax year 2026, the simplified-method phaseout thresholds are $86,410 for single or head of household filers and $110,780 for married filing jointly or qualifying surviving spouse filers.
Montana Montana generally includes taxable Social Security income in state taxable income to the extent it is included in federal taxable income. A separate age-based state subtraction may reduce taxable income for some taxpayers age 65 or older.
New Mexico Most recipients qualify for an exemption. The exemption applies below $100,000 for single filers, $150,000 for married filing jointly, surviving spouse, or head of household filers, and $75,000 for married filing separately.
Rhode Island A state modification may exclude federally taxable benefits for taxpayers who have reached Full Retirement Age and meet the applicable federal AGI limit. Rhode Island adjusts these limits for inflation, so review the current-year instructions before filing.
Utah Utah uses a nonrefundable Social Security benefits tax credit. The credit is subject to income-based phaseouts, including thresholds of $54,000 for single filers, $90,000 for married filing jointly or head of household filers, and $45,000 for married filing separately.
Vermont Vermont offers a full or partial exemption based on adjusted gross income. Under current rules, the full exemption applies at lower income levels and phases out as income rises. Review Vermont's current tax-year instructions before filing.

All other states either do not have a broad individual income tax or generally do not tax Social Security benefits at the state level. That does not mean those states are automatically lower-tax locations overall, because property taxes, sales taxes, retirement-account taxation, estate taxes, insurance costs, and housing costs can still differ substantially.

2. Why State Rules Are Different From Federal Rules

The federal government uses combined income to determine whether part of your Social Security benefit is included in federal taxable income. States can use a different approach.

For example, one state may fully exempt Social Security below a particular income threshold, another may offer a partial subtraction, and another may provide a tax credit rather than an exclusion. Some states also require you to reach Full Retirement Age before you qualify for their state-level relief.

This means two retirees with identical federal tax returns can owe different state tax amounts depending on their state of residence.

3. Planning Considerations Before Making a Large Withdrawal

State rules often depend on adjusted gross income, taxable income, or a state-specific version of income. A large Traditional IRA withdrawal, Roth conversion, investment sale, bonus, or part-time job can affect eligibility for a state exemption or credit.

  • Review the timing of Traditional IRA and 401(k) withdrawals. These distributions generally increase federal taxable income and can affect state thresholds.
  • Understand Roth conversion timing. A Roth conversion is generally taxable in the year it occurs, even though qualified Roth IRA withdrawals may later be excluded from income.
  • Check investment-sale consequences. Taxable capital gains may affect state income calculations, while a return of original cost basis generally does not create taxable income.
  • Review each spouse separately when required. Some state benefits depend on the age, income, and Social Security benefit attributable to each spouse.
  • Recheck rules every tax year. State legislatures can revise exclusions, phaseouts, credits, and tax rates.

4. Should State Social Security Taxes Determine Where You Live?

State taxation of Social Security can be relevant, but it should not be the only factor in a relocation decision. A state with no Social Security tax may have higher property taxes, higher sales taxes, more expensive housing, or different taxes on retirement accounts and investment income.

Before changing your residence, compare your expected total annual tax and living costs. Also remember that establishing a new tax residence usually requires more than changing a mailing address. States may consider factors such as your home, time spent in the state, voter registration, driver's license, vehicle registration, and other evidence of domicile.

5. A Practical Annual Review Checklist

  1. Confirm whether your state taxes federally taxable Social Security benefits.
  2. Identify the income measure your state uses, such as federal AGI, state taxable income, or modified income.
  3. Estimate retirement-account withdrawals, work income, dividends, and capital gains before year-end.
  4. Check whether Full Retirement Age, age 65, filing status, or each spouse's income affects eligibility.
  5. Use the official state tax form instructions or a qualified tax professional for a personal calculation.

State Social Security tax rules can influence retirement cash-flow planning, but they are only one part of a larger picture. A coordinated plan should consider federal tax rules, retirement-account withdrawals, Medicare premiums, state taxes, and your long-term living costs.

Sources and Further Reading

Last reviewed: July 2026

Educational disclaimer: This article is for general educational purposes only and is not tax, legal, investment, or financial advice. State tax rules, income limits, credits, and exclusions can change. Your tax result depends on your residency, filing status, income, deductions, age, and other personal circumstances. Review current official state guidance and consult a qualified tax professional for advice about your situation.

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