9 States Taxing Social Security in 2025 (And How Much They’ll Take)

Retirees whose income exceeds a certain threshold face federal income taxes on their Social Security benefits. But the tax obligations don’t stop there for everyone.

In some places, you might also owe state income taxes on your Social Security benefits. Knowing which states levy these taxes can help you prepare for retirement.

Here are the states where residents may face extra income taxes on Social Security income.

Colorado taxes some Social Security income. Taxpayers between the ages of 55 and 64 can subtract up to $20,000 of their Social Security payments from their state taxable income.

After hitting age 65, Colorado taxpayers can subtract up to $24,000 of their Social Security benefits from the state taxable income.

Colorado has a 4.4% flat individual income tax rate.

Individual Connecticut taxpayers with an adjusted gross income of $75,000 or less can deduct 100% of their Social Security income from their state taxable income. For a married couple filing jointly, the adjusted gross income threshold is $100,000.

Those with an income above those thresholds still get a partial exemption from state taxes. State taxation of Social Security benefits does not exceed 50% of benefits received.

Connecticut income taxes range from 2% to 6.99%.

Minnesota residents can deduct at least a portion of Social Security payments from their state taxable income.

For single taxpayers, those earning $82,190 or less are fully exempt from state Social Security taxes.

For married couples filing jointly, Social Security benefits are fully state-tax exempt if your income is $105,380 or less.

Those who earn more than those amounts will pay at least some state taxes on Social Security income.

Minnesota income taxes range from 5.35% to 9.85%.

In Montana, single filers with an income below $25,000 and joint filers with an income below $32,000 do not face state taxes on Social Security benefits. Others might owe such taxes, however.

Montana’s income taxes range from 4.7% to 5.9%.

In New Mexico, most retirees are exempt from Social Security taxes. Since 2022, single seniors with less than $100,000 in income and married couples filing jointly with less than $150,000 in income haven’t seen their Social Security benefits subjected to state income tax.

Those with income above these thresholds must pay state taxes on their Social Security benefits, however.

New Mexico’s income taxes range from 1.7% to 5.9%.

Rhode Island retirees who have reached full retirement age won’t face taxes on their Social Security benefits if their income is $101,000 or less for singles, or $126,250 or less for married couples filing jointly.

If your income is above this threshold, you’ll pay taxes on your Social Security income.

Rhode Island’s income taxes range from 3.75% to 5.99%.

Utah Gov. Spencer Cox has proposed eliminating state taxes on Social Security. For now, some residents still have to pay this tax.

However, a tax credit for Social Security taxes is available for some taxpayers. The Utah state government has a worksheet at its website that can help you determine if you qualify for the break.

Utah’s state income tax is a flat 4.55%.

Vermont offers exemptions on Social Security income for taxpayers with certain incomes.

For married couples and civil unions filing jointly, Social Security benefits are exempt from state tax for those earning $65,000 or less in adjusted gross income. Single filers are exempt if they have an income of $50,000 or less.

Others will see their Social Security benefits subjected to state taxes.

Vermont’s income taxes range from 3.35% to 8.75%.

West Virginia is currently phasing out the taxation of Social Security benefits, which is good news for residents hoping to get ahead financially.

Residents who make less than $50,000 — or less than $100,000 for joint filers — currently do not owe these taxes. For those who make more than those amounts, Social Security taxes are falling. By 2026, the tax will disappear altogether.

West Virginia’s income tax ranges from 2.36% to 5.12%.

Federal and state taxes on Social Security benefits can have a big impact on your budget during retirement.

For those seeking a more comfortable financial situation, seek out ways to supplement your Social Security income, such as through a part-time job or developing a side hustle.