Where you live matters when it comes to paying taxes on Social Security benefits.
You can increase your Social Security benefits in several ways: Work at least 35 years in jobs that qualify for Social Security retirement benefits. Wait at least until your full retirement age to claim your benefits.
Once you’re fully retired and receiving Social Security, though, your benefit amount will only increase with annual cost-of-living adjustments (COLAs). However, you can still increase the amount of money you get to keep. How? By living in a state where you won’t have to pay taxes on your Social Security benefits.
Where your Social Security benefits are taxed
You could have to pay state taxes in 2025 on Social Security benefits if you live in one of these nine states:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
The amount of income taxes on Social Security benefits varies by state. Colorado only taxes Social Security benefits for individuals under age 65.
This list was longer in the past. Kansas recently eliminated state taxes on Social Security benefits. The list will also be shorter in the future. West Virginia is phasing out its state tax on Social Security, with full elimination of the tax in 2026.
States that don’t tax any income
Eight states don’t tax any income at all, including Social Security benefits. These states are:
- Alaska
- Florida
- Nevada
- South Dakota
- Tennessee
- Texas
- Washington
- Wyoming
Keep in mind you could still have to pay sales, property, and/or excise taxes in these states. The states still must raise money to fund operations in other ways, since they don’t tax income.
Image source: Getty Images.
States with income taxes that don’t tax Social Security
Another 33 states have income taxes but don’t tax Social Security benefits. The list currently includes:
- Alabama
- Arizona
- Arkansas
- California
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- New Hampshire
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- Virginia
- Wisconsin
In addition, Washington, D.C., doesn’t tax Social Security benefits, but does have an income tax.
Uncle Sam doesn’t care where you live
While 41 states plus Washington, D.C. don’t require you to pay state taxes on your Social Security benefits, you could have to pay federal taxes on your benefits, regardless of where you live. It’s still possible that you won’t owe the IRS anything related to Social Security, though.
To determine if you must pay federal taxes on Social Security, first calculate your combined income. This is the total of half of your Social Security benefits (including retirement, disability, and survivor benefits, but not Supplemental Security Income payments), plus all other income from wages, pensions, capital gains, dividends, and interest.
Once you have calculated your combined income, use the table to determine if you’ll owe federal taxes on your Social Security benefits, and, if so, how much of your benefits could be taxable:
| Federal Tax Filing Type | Combined Income | Percentage of Social Security Benefits That Are Taxable |
|---|---|---|
| Single | Less than $25,000 | 0% |
| $25,000 to $34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Separately | Less than $25,000 | 0% |
| $25,000 to $34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Jointly | Less than $32,000 | 0% |
| $32,000 to $44,000 | Up to 50% | |
| Over $44,000 | Up to 85% |
Data source: Social Security Administration. Table by author.
By the way, if you want to keep things simple, you can request that all federal income taxes be automatically withheld from your monthly Social Security benefits. You’ll just need to complete Form W-4V (Voluntary Withholding Request) and send it to your local Social Security office.
