Quick Answer
41 states plus D.C. don't tax Social Security benefits at all. Only 9 states tax Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. This can save retirees $1,000-4,000+ annually depending on their benefit amount and state tax rates.
Best Answer
Sarah Chen, Payroll Tax Analyst
Best for anyone planning retirement or currently receiving Social Security benefits
Complete list of states that don't tax Social Security
Good news: 41 states plus Washington D.C. completely exempt Social Security benefits from state income tax. This means if you receive $30,000 annually in Social Security benefits, you pay zero state tax on that income in these states.
States with NO state tax on Social Security:
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, Wyoming, plus Washington D.C.
The 9 states that DO tax Social Security
Only 9 states impose their own tax on Social Security benefits:
Example: How much this costs in taxable states
Let's say you receive $25,000 annually in Social Security benefits and have $15,000 in other retirement income ($40,000 total).
In a non-taxing state (like Florida):
In a taxing state (like Vermont, 5.35% rate):
For someone with $35,000 in Social Security benefits, the difference could be $800-1,500+ annually depending on the state's tax rate.
Key factors affecting your state tax bill
What you should do
If you're planning retirement, factor state Social Security taxation into your location decision. Use our paycheck calculator to estimate your total tax burden in different states, including Social Security taxation.
Key takeaway: Moving from a Social Security-taxing state to a non-taxing state can save $500-2,000+ annually for typical retirees, making it a significant factor in retirement planning.
*Sources: [IRS Publication 915](https://www.irs.gov/pub/irs-pdf/p915.pdf) - Social Security and Equivalent Railroad Retirement Benefits*
Key Takeaway: 41 states don't tax Social Security at all, while 9 states do tax benefits, potentially costing retirees $500-2,000+ annually depending on benefit amount and state tax rates.
State-by-state Social Security taxation overview
| Tax Status | Number of States | Examples | Potential Annual Savings* |
|---|---|---|---|
| No tax on Social Security | 41 + D.C. | Florida, Texas, California | $0 extra tax |
| Partial taxation | 4 | Colorado, New Mexico | $200-800 |
| Full taxation | 5 | Vermont, Connecticut | $500-2,000+ |
More Perspectives
Sarah Chen, Payroll Tax Analyst
Best for those with substantial retirement income beyond Social Security
Why state Social Security taxation matters more for higher earners
If you expect substantial retirement income beyond Social Security, state taxation becomes more significant. With high combined income, up to 85% of your Social Security benefits become federally taxable, and states that tax Social Security will take their cut too.
Example scenario: $45,000 Social Security + $60,000 other retirement income = $105,000 total
Strategic considerations
Beyond Social Security taxation, consider the full tax picture:
Some traditionally "tax-friendly" states like New Hampshire have no income tax but very high property taxes that could offset Social Security savings.
Key takeaway: For high-income retirees, state Social Security taxation is just one piece of the puzzle—analyze total tax burden including income, property, and sales taxes before relocating.
Key Takeaway: High-income retirees facing 85% taxability should consider total state tax burden, not just Social Security taxation, as property and sales taxes can offset income tax savings.
Sarah Chen, Payroll Tax Analyst
Best for location-independent workers who can choose their retirement state
Location flexibility advantage
As a remote worker, you have unique flexibility to establish residency in any state before claiming Social Security. This gives you time to optimize your tax situation years in advance.
Top tax-efficient states for remote workers transitioning to retirement:
Timing your move strategically
Consider establishing residency 1-2 years before claiming Social Security to:
Residency requirements vary by state but typically include:
Key takeaway: Remote workers have a 5-10 year window to strategically relocate before Social Security, potentially saving thousands annually while testing retirement locations.
Key Takeaway: Remote workers can strategically establish residency in Social Security-friendly states years before retirement, combining location testing with long-term tax savings.
Sources
- IRS Publication 915 — Social Security and Equivalent Railroad Retirement Benefits
Related Questions
Reviewed by Sarah Chen, Payroll Tax Analyst on February 28, 2026
This content is for educational purposes only and is not a substitute for professional tax advice. Consult a qualified tax professional for advice specific to your situation.