Which States Tax Social Security Benefits in 2026?
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. 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 ...