Where you live can change how much of your Social Security benefit you actually keep. In 2026, most retirees are in the clear, but a handful of states still reach for a share.
Here is the short version. In 2026, eight states tax Social Security benefits in some form: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. The other 42 states, plus Washington, D.C., do not tax benefits at all. And even in the eight states that do, income limits mean many retirees owe nothing.
Which states tax Social Security in 2026?
These are the eight states that tax Social Security benefits for at least some residents in 2026:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
Every other state leaves your benefits alone. That includes the nine states with no state income tax at all (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming) and dozens more that have an income tax but specifically exempt Social Security.
One change worth noting: West Virginia used to be on this list. It finished phasing out its tax on benefits, so starting with the 2026 tax year, West Virginia no longer taxes Social Security. That is why some older articles still say nine states. For 2026, the number is eight.
Even that number overstates who actually pays. Most of these eight states use income limits, so lower- and middle-income retirees are often fully exempt. The real question is usually not “does my state tax benefits?” but “is my income low enough to skip the tax?”
First, how the federal tax works
Before your state enters the picture, the federal government may tax part of your benefit. Your state often builds on the federal rules, so it helps to understand this layer first.
The IRS does not look at your benefit amount by itself. It uses a figure called combined income. Here is the formula:
Combined income = your adjusted gross income + any tax-free interest + half of your yearly Social Security benefits.
Once you have that number, you compare it to two thresholds set by your filing status. These come straight from the IRS and apply for 2026:
If you file as single:
- Below $25,000: none of your benefits are taxed.
- $25,000 to $34,000: up to 50% of your benefits can be taxed.
- Above $34,000: up to 85% can be taxed.
If you are married filing jointly:
- Below $32,000: none of your benefits are taxed.
- $32,000 to $44,000: up to 50% can be taxed.
- Above $44,000: up to 85% can be taxed.
“Up to 85%” is a ceiling, not a flat rate. It means at most 85% of your benefit can be counted as taxable income. It does not mean you lose 85% of your benefit to taxes.
There is also a newer deduction to keep in mind. For tax years 2025 through 2028, many taxpayers age 65 and older may qualify for an additional deduction that can reduce their overall taxable income. However, it does not change the combined-income formula used to determine whether Social Security benefits become taxable.
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The 8 states that tax Social Security, one by one
Each state handles this differently. Here is how the eight work for 2026. In most of them, an income limit decides whether you owe anything.
Colorado
Colorado charges a flat 4.4% state tax on taxable income. Colorado provides substantial deductions for Social Security income, with treatment varying by age and income. Residents age 65 and older can deduct all of their federally taxed Social Security, which means many older retirees pay no state tax on benefits.
Connecticut
Connecticut taxes benefits only for higher-income retirees. Single filers with adjusted gross income under $75,000, and joint filers under $100,000, pay no state tax on Social Security. Above those lines, part of your benefit can be taxed, but the taxable share is capped.
Minnesota
Minnesota is one of the stricter states, though it still shields many retirees. It uses higher-income thresholds than many states, so benefits are fully exempt for most lower- and middle-income retirees, with a partial break that extends further up the income scale. Past those upper limits, federally taxable benefits are taxed by the state. The exemption shrinks gradually as income rises rather than cutting off all at once.
Montana
Montana is less generous than most. It starts from your federal taxable benefit and uses income lines close to the federal ones, so even modest-income retirees can owe a small amount. Residents age 65 and older can subtract a set amount from taxable income, but the state does not offer the broad exemptions some other states do. The result is that a slice of benefits can be taxable even for retirees with fairly low income.
New Mexico
New Mexico technically taxes benefits, but its income limits are high enough that most retirees pay nothing. If you earn under $100,000 as a single filer or $150,000 filing jointly, your Social Security benefits are exempt from state tax.
Rhode Island
Rhode Island does not tax benefits for people who have reached full retirement age and whose income falls under the state’s limits. For reference, the 2025 limits were $107,000 for a single filer and about $134,000 for a couple filing jointly, adjusted each year for inflation. If you are below full retirement age, or your income is above the limit, part of your benefit can be taxed at the state’s regular rates.
Utah
Utah uses the federal formula to decide how much of your benefit counts as taxable, then applies its flat state rate. It offers a credit that can erase or reduce that tax. Single filers under $75,000 and joint filers under $100,000 in income generally pay no state tax on benefits. Above those limits, the credit phases down and part of your benefit can be taxed.
Vermont
Vermont fully exempts benefits for retirees under its income limits and offers a partial exemption just above them. The exact 2026 income cutoffs vary depending on the source, so confirm them with the Vermont Department of Taxes before relying on a specific figure. As a general guide, single filers in the mid-$50,000s and joint filers in the low-$70,000s and below are fully exempt, with a partial break for incomes somewhat above that.
A quick example
Say Barbara is 68 and lives in Billings, Montana. (This is a hypothetical to show the math.) She collects $22,000 a year in Social Security and takes $16,000 from her traditional IRA.
Her combined income is $16,000 plus half of her $22,000 benefit, which is $11,000. That adds up to $27,000. That figure may cause a portion of her Social Security benefit to become taxable under both federal and Montana rules. Her standard deduction and the added senior deduction may reduce or even erase her federal bill, but Montana can still tax a portion of the benefit.
Now move Barbara to Florida with the same income. Florida has no state income tax, so she owes zero at the state level on the same benefit. Same retiree, same money, different result, driven only by where she lives.
What you can do about it
If you live in one of the eight states, or you are weighing a move, a few steps can help you keep more of your benefit.
Watch your combined income. Because both the federal tax and most state taxes turn on that one number, the timing and size of your withdrawals matter. Pulling a large amount from a traditional IRA in a single year can push your combined income over a threshold and pull more of your benefit into taxable territory. Spreading withdrawals across years can keep you under the line.
Consider the order and type of your accounts. Roth withdrawals do not count toward combined income the way traditional IRA and 401(k) withdrawals do. Converting some traditional savings to a Roth before required minimum distributions begin at 73 can lower the taxable income you report later, which can reduce how much of your benefit is taxed. Conversions have their own tax cost in the year you make them, so the goal is to model the trade-off, not to convert blindly. Long-term capital gains can also affect your overall tax picture, although they are treated differently than IRA withdrawals when calculating taxable income.
Look at charitable giving from your IRA. If you are 70½ or older, a qualified charitable distribution lets you send money straight from your IRA to a charity without that amount counting as income. That can hold your combined income down and protect more of your benefit.
Think about timing if you are relocating. If you plan to move from a taxing state to a non-taxing one, establishing residency in the new state before large income events can matter for how your benefits are treated that year.
This is where a clear plan earns its keep. These thresholds interact in ways that are hard to see one decision at a time. A withdrawal, a Roth conversion, a capital gain, and a move can each nudge the same combined-income number, and the effect on your benefit is not obvious until you map it out. Seeing the whole picture, ideally with tools or a professional who can model several years at once, is what turns guesswork into a decision you can feel confident about.
The bottom line
In 2026, only eight states tax Social Security benefits, and most of them exempt lower- and middle-income retirees through income limits. The other 42 states and Washington, D.C. do not tax benefits at all. Whether you owe anything depends on two things: where you live and your combined income for the year.
If you live in Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, or Vermont, the single most useful step is to find out where your combined income falls relative to your state’s limit. For many retirees, the answer is that they owe nothing. For others, a little planning around the timing of income can make the difference.
This article is educational and is not personalized tax, legal, or financial advice. State rules and dollar figures change, and they can turn on details specific to your situation. Confirm your own numbers with your state’s department of revenue, the IRS, or a qualified tax professional before making a decision.
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