For retirees and people planning ahead, one of the clearest states that tax social security income differences between states is how they treat Social Security tax and benefits. In 2026, most states will not tax Social Security at all, but a small group will still impose some income tax on benefits, usually for higher‑income retirees. Understanding which states fall into which category helps you see how far your monthly checks may really go after state taxes.
Key Points For 2026
- Only 8 states will tax Social Security: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont will still tax at least some benefits in 2026, usually above income thresholds (according to Kiplinger and Bankrate retirement tax surveys).
- West Virginia finishes its phase‑out: West Virginia still taxes some Social Security in 2025 but will fully exempt benefits starting with 2026 state returns, joining the non‑taxing group (reported by Money.com and major retirement tax guides).
- Recently improved states: Kansas, Missouri, and Nebraska all passed laws to eliminate state tax on Social Security beginning with the 2024 tax year, so they also remain non‑taxing in 2026 (summarized by AARP and Investopedia state tax round‑ups).
- Big picture: By 2026, retirees will owe no state tax on Social Security in 42 states plus the District of Columbia, while the remaining 8 will continue some level of taxation based on income or benefit amounts.
States Ranked By Social Security Tax Treatment in 2026
For practical planning, it helps to group states by how friendly they are toward Social Security benefits. The table below ranks states into three broad tiers: no income tax at all, income tax but full Social Security exemption, and states that still tax some Social Security.
| Tax Tier | States | Retiree Impact (2026) |
|---|---|---|
|
TIER 1
No State Income Tax
|
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming | Pure Exemption: These states have no state income tax at all. Social Security, pensions, and 401(k) withdrawals are 100% untouched by the state. |
|
TIER 2
Income Taxed, SS Exempt
|
AL, AZ, AR, CA, DE, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MS, MO, NE, NH, NJ, NY, NC, OH, OK, OR, PA, SC, VA, WV, WI, DC | Targeted Relief: These states tax wages and other income but explicitly exempt Social Security benefits. (West Virginia joins this group fully in 2026). |
|
TIER 3
Partial/Full SS Tax
|
CO, CT, MN, MT, NM, RI, UT, VT | Variable Tax: These 8 states tax a portion of benefits, often based on high income thresholds. Lower-income retirees may still be exempt depending on specific state formulas. |
Sources: Kiplinger “States That Tax Social Security Benefits” and “States That Won’t Tax Your Retirement Income” 2025; Bankrate state Social Security tax guide; AARP and Investopedia state Social Security tax summaries updated for recent law changes.
States Ranked By Social Security Tax Treatment Map
States That Still Tax Social Security In 2026
Only eight states are expected to tax at least some Social Security benefits in the 2026 tax year. The details matter, because most of them protect lower‑income retirees while applying tax only once income rises above set thresholds.
- Colorado: Offers generous retirement income exclusions that can fully shelter benefits for many retirees, but Social Security can still be taxed if total income and benefits exceed exemption amounts.
- Connecticut: Exempts Social Security for many retirees below specified adjusted gross income levels; above those, a portion of benefits becomes taxable at regular state rates.
- Minnesota: Taxes benefits as part of state income, though lawmakers created and expanded Social Security subtraction rules that reduce or eliminate tax for many retirees. Discussions continue about full repeal, but as of 2026 some higher‑income households still pay tax on benefits.
- Montana: Subjects Social Security benefits to tax using its own income thresholds, in a way similar to the federal formula, though some deductions and credits can offset the burden.
- New Mexico: Has taken steps to reduce Social Security taxation, including exemptions for many lower‑ and middle‑income retirees, but does not fully exempt all benefits for all income levels yet.
- Rhode Island: Allows many retirees to subtract Social Security benefits from state income once age and income conditions are met; above those thresholds, benefits may be partially taxed.
- Utah: Taxes retirement income broadly but provides a nonrefundable credit that can offset Social Security tax for many retirees up to certain income limits.
- Vermont: Exempts Social Security for lower‑income households and phases in tax for higher incomes, similar to federal rules, though full exemption is not yet in place.
Advocacy groups and financial publications often point out that this list has shrunk over time. West Virginia, Kansas, Missouri, and Nebraska all changed their laws recently to stop taxing Social Security, and some of the remaining eight have active proposals to follow the same path over the next few years.
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Recent Law Changes Affecting 2026 Rankings
The 2026 landscape looks different from just a few years earlier because several states have recently reformed how they treat Social Security. These changes are important for anyone comparing tax climates by year.
- West Virginia: Phased in exemptions and by 2026 will fully exempt Social Security benefits from state income tax, moving out of the “taxing” group and into the fully exempt tier.
- Kansas: Approved legislation eliminating state income tax on Social Security for all income levels starting with the 2024 tax year, instead of only shielding lower‑income retirees.
- Missouri: Removed income caps that previously limited who could exclude Social Security, allowing a full exemption of benefits from 2024 onward.
- Nebraska: Completed its scheduled phaseout, resulting in a full exemption of Social Security benefits from state tax as of the 2025 tax year.
Financial outlets like AARP, Money.com, and Kiplinger highlight these changes as part of a national trend in which states compete for retirees by relaxing or eliminating taxes on Social Security income. For 2026 planning, that means more choices for retirees who want to avoid state tax on their benefits completely.
What This Ranking Means For Your Retirement Planning
Seeing how states handle Social Security helps set expectations, but the presence or absence of tax on benefits is only one part of the bigger tax picture. Some states with no income tax have higher property or sales taxes, while states that tax Social Security lightly may be more generous on other retirement income or offer better public services.
When comparing locations, many planners suggest looking at:
- Whether the state taxes Social Security at all, and at what income level any tax begins.
- How pensions, 401(k) and IRA withdrawals, and other investment income are treated.
- Property tax rates and homestead exemptions that affect long‑term housing costs.
- Sales and local taxes on everyday purchases, which influence overall cost of living.
Combining Social Security tax treatment with broader retirement tax data gives a more realistic view of how much of your income you will keep. For some retirees, avoiding any state tax on Social Security is the top priority; for others, total tax burden and quality of services matter more than this single line item.
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FAQ
How many states tax Social Security in 2026?
In 2026, eight states are expected to tax at least some Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. West Virginia and several others have eliminated their Social Security tax by this point.
Which states are best if I never want my Social Security taxed?
If avoiding any state tax on Social Security is your top priority, you can look at states with no income tax (such as Florida, Texas, Nevada, and Tennessee) or states with income tax that fully exempt Social Security (such as Pennsylvania, Iowa, Kansas, Missouri, Nebraska, and West Virginia after its phase‑out).
Are there really 42 states no social security tax?
Yes, as of 2026, there are 42 states no social security tax, plus the District of Columbia. This list has grown recently because states like West Virginia, Kansas, Missouri, and Nebraska have passed legislation to fully exempt these benefits from state-level taxation to attract and retain retirees.
Does a state’s Social Security tax policy ever change?
Yes. The list of states taxing Social Security has been shrinking over time as legislatures pass laws to exempt benefits. Kansas, Missouri, Nebraska, and West Virginia all changed their laws recently, so it is important to check current rules when you make long‑term decisions.
Do Social Security tax rules replace federal taxes?
No. State rules are in addition to federal rules. The federal government may tax up to 85 percent of your Social Security benefits depending on your combined income. State policies apply after the federal calculation and can either add no additional tax or impose a separate state tax layer.
Should I move solely based on Social Security tax?
For most retirees, Social Security tax is one important factor but not the only one. Total state and local tax burden, cost of living, healthcare access, safety, and proximity to family often matter just as much when choosing a place to live in retirement.
References
- Internal Revenue Service (IRS): Publication 915 – Social Security and Equivalent Railroad Retirement Benefits
- Colorado Department of Revenue: Information for Retirees & Pension/Annuity Subtraction
- Connecticut Department of Revenue Services: CT.gov Tax Portal
- Minnesota Department of Revenue: Individual Income Tax Information
- Montana Department of Revenue: Montana Taxpayer Services
- New Mexico Taxation & Revenue Department: NM Tax Information for Individuals
- Rhode Island Division of Taxation: Personal Income Tax Forms & Instructions
- Utah State Tax Commission: Social Security Benefits Credit Information
- Vermont Department of Taxes: Social Security Exemption Guidelines
