The 9 States That Will Tax Your Social Security the Most in 2025

No one enjoys paying taxes—especially after decades of hard work and retirement planning. Yet, many retirees make one of the biggest financial mistakes by not factoring in how state and federal taxes will impact their Social Security benefits.

In 2025, some states will tax Social Security benefits more than others, making it crucial to understand how much of your check you’ll keep. Whether you’re already retired or planning for the future, knowing where your money will go can help you make smarter financial decisions.

Before diving into state-specific rules, let’s address the federal government’s role in taxing your Social Security income.

The IRS determines how much of your benefits are taxable based on your combined income, which includes:
✅ Adjusted Gross Income (AGI)
✅ Nontaxable interest
✅ Half of your Social Security benefits

Depending on your income level, you could be taxed on up to 85% of your Social Security payments:

💰 Single Filers:

If your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxed.
If it exceeds $34,000, up to 85% is taxable.

💰 Married Couples Filing Jointly:

If your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxed.
If it exceeds $44,000, up to 85% is taxable.

While federal taxes are a given, state taxes vary widely, making it essential to plan for where you retire.

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The good news? Most U.S. states and Washington, D.C., do not impose an additional tax on your Social Security benefits beyond what the federal government already collects.

✅ States That Do NOT Tax Social Security in 2025:

Alabama
Alaska
Arizona
Arkansas
California
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Nevada
New Hampshire
New Jersey
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
South Carolina
South Dakota
Tennessee
Texas
Virginia
Washington
Washington, D.C.
Wisconsin
Wyoming

🚨 But Be Careful! Some of these states have income limits to qualify for the Social Security tax exemption. For example, in Missouri, your Social Security benefits are only fully tax-exempt if your AGI is below $85,000 (single) or $100,000 (joint filers).

If your state isn’t on the list above, you may be paying more in Social Security taxes.

📉 These 9 states still tax Social Security benefits, but with some exceptions:

State	Single Filer Exemption	Joint Filer Exemption
Colorado	Up to $20,000 exemption for retirees aged 55-64, and $24,000 for 65+	Same as single filers
Connecticut	AGI ≤ $75,000	AGI ≤ $100,000
Kansas	AGI ≤ $75,000	Same as single filers
Minnesota	AGI ≤ $82,190	AGI ≤ $105,380
Montana	AGI ≤ $25,000	AGI ≤ $32,000
New Mexico	AGI ≤ $75,000	AGI ≤ $100,000
Rhode Island	AGI ≤ $88,950	AGI ≤ $111,200
Utah	Tax credit for incomes ≤ $30,000	Tax credit for incomes ≤ $50,000
Vermont	AGI ≤ $50,000	AGI ≤ $65,000

📢 Special Case: West Virginia
West Virginia is gradually phasing out Social Security taxation. By 2026, all retirees in the state will be fully exempt from paying state taxes on their benefits.

If you’re worried about taxes eating away at your Social Security income, consider these strategies:

📌 1. Move to a Tax-Friendly State
Relocating to a state that doesn’t tax Social Security benefits can significantly increase your retirement income.

📌 2. Manage Your Income
Since federal and state Social Security taxes depend on your AGI, reducing taxable income through Roth IRA withdrawals or tax-free investments can help you stay below key thresholds.

📌 3. Take Advantage of State Exemptions
If you live in a state that taxes Social Security but offers income-based exemptions, you may qualify for partial or full tax relief depending on your AGI.

📌 4. Consider a Roth IRA Conversion
Since Roth IRA withdrawals are tax-free, moving funds from a traditional IRA to a Roth IRA before claiming Social Security can help lower your taxable income in retirement.

With Social Security taxes increasing in 2025 for some retirees, it’s more important than ever to understand your state’s tax rules and plan accordingly.

If you live in one of the nine states that tax Social Security, exploring exemptions, income thresholds, and relocation options could save you thousands in retirement.

Are you currently paying state taxes on your Social Security? Thinking about moving to a more tax-friendly state? Let us know in the comments! 👇