Which states tax Social Security in 2024?
The District of Columbia and 41 other states do not tax Social Security benefits. Here are the states where they are taxed.
One of the benefits of retirement is that the day of paying income tax to the state and federal government ends. However, the Social Security Administration (SSA) estimates that around forty percent of recipients pay taxes on their benefits, primarily because other sources of income push their earnings into the taxable range. Typically, only taxpayers with meager incomes are exempt from the Social Security tax. The remainder of taxpayers pay taxes on up to half of their Social Security payment or, for those with higher incomes, up to 85 percent of it.
According to the SSA, 50 percent of a taxpayer’s benefits may be taxable if the following criteria are met:
- You file as a single taxpayer, head of household, or qualified widow/widow with income of $25,000 to $34,000.
- You are separated from your spouse for the entire tax year and have income of $25,000 to $34,000.
- You are married filing jointly with income of $32,000 to $44,000.
The tax rate on benefits increases to 85 percent if:
- You file as a single taxpayer, head of household, or qualified widow/widow with income over $34,000.
- You are married filing jointly with income over $44,000.
- You are separated from your spouse for the entire tax year and have income greater than $34,000.
- You are married filing separately and lived with your spouse at any time during the tax year.
States where Social Security is taxed
Social Security recipients are required to pay state taxes in addition to federal taxes unless they live in one of the 41 states or the District of Columbia that will no longer tax Social Security benefits. Missouri is the most recent state to drop income tax on Social Security benefits with a bill signed into law in July 2023. Nebraska had been phasing out taxes on Social Security benefits in 2022 and they will be exempt in 2024.
- Alabama
- Alaska (no income tax)
- Arizona
- Arkansas
- California
- Colorado
- Delaware
- Florida (no income tax)
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- Nevada (no income tax)
- New Hampshire (no income tax)
- New Jersey
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota (no income tax)
- Tennessee (no income tax)
- Texas (no income tax)
- Virginia
- West Virginia
- Washington (no income tax)
- Washington DC.
- Wisconsin
- Wyoming (no income tax)
In the nine states that do tax Social Security payments, the rate applied varies:
- Colorado (only those under 65): flat 4.4%
- Connecticut: 3 to 6.99%
- Kansas: 3.1 to 5.7%
- Minnesota: 5.35 to 9.85%
- Missouri: 0 to 5.4% (2023 last year benefits taxed for incomes over $85K, individuals & $100K joint filers)
- Montana: 1 at 6.75%
- Nebraska: 2.46 to 6.84% (2023 last year benefits will be taxed)
- New Mexico: 1.7 to 5.9%
- Rhode Island: 3.75 to 5.99%
- Utah: 4.95%
- Vermont: 3.35 to 8.75%
The rate applied to benefits depends on how much the total income is earned or received by a Social Security recipient. The higher the income, the higher the rate.