It’s becoming less common for states to tax Social Security benefits, but eight states still do.
However, the tax treatment of Social Security retirement income can vary drastically from state to state. That’s mainly because many of these states won’t tax your Social Security if you meet specific income guidelines, and some states have more generous guidelines than others.
So, here’s how all eight states tax Social Security retirement income.
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Colorado Social Security benefits tax
Retirees aged 55 to 64 can deduct up to:
- $95,000 (married filing jointly) or $75,000 (single filer) of Social Security benefits from their taxable income for tax year 2026.
- For taxpayers who exceed the above thresholds, the deduction is $20,000.
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Connecticut Social Security benefits tax
- For married filing separately and single filers, Social Security benefits are not taxed in Connecticut if adjusted gross income (AGI) is under $75,000.
- For married filing jointly and head of household filers, Social Security benefits are not taxed with AGI below $100,000.
- If a taxpayer’s AGI is more than the Connecticut income threshold, no more than 25% of Social Security benefits are taxed.
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Minnesota Social Security benefits tax
Here are the threshold amounts subject to no social security tax, according to the Minnesota Department of Revenue:
- Married filing jointly filers are fully tax-exempt at less than $108,320.
- If you are married and filing separately, you are fully tax-exempt at $54,160 or less.
- Head of household and single filers are tax-exempt at less than $84,490.
(Note: Minnesota also has an “alternative method” for claiming a state subtraction. This method is based on your filing status and provisional income, which is your gross income plus tax-exempt interest and half of Social Security and Tier 1 Railroad Retirement benefits.)
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Montana Social Security benefits tax
Montana’s income tax rate is 5.65% on income over $95,000 ($47,500 for single filers). That’s not great news for some retirees since the treatment of Social Security retirement income isn’t as generous in Montana for 2026 as it is in most states.
- Taxpayers 65 and over only receive a $5,500 subtraction from federal taxable income.
- Several income deductions, including the partial interest income deduction for taxpayers aged 65 or older, were repealed in recent years.
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New Mexico Social Security benefits tax
- Single filers earning up to $100,000 per year won’t have their Social Security benefits taxed at the state level.
- New Mexico won’t tax Social Security benefits for joint filers who earn up to $150,000 per year.
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Rhode Island Social Security benefits tax
- For joint filers, only those with an AGI of $133,750 or more are subject to state tax on Social Security benefits.
- For most other filing statuses, only retirees with a federal AGI of $107,000 or more pay state taxes on Social Security benefits.
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Utah Social Security benefits tax
Utah taxes Social Security benefits, but some retirees may qualify for a Social Security benefits credit. There is a Social Security Credit Worksheet on the state’s website you can use to determine the amount of the credit you qualify for.
- Utah also offers a retirement tax credit of $450, but taxpayers can’t take this credit if they claim the Social Security benefits credit or the Military Retirement credit.
- Utah taxes all taxable income at a flat 4.50% tax rate.
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Vermont Social Security benefits tax
- If you are married and filing jointly, your Social Security benefits are tax-exempt in Vermont if your AGI is $70,000 or less.
- Single and married filing separately filers qualify for a full exemption with an AGI of $55,000 or less.
- Single filers qualify for a partial exemption with an AGI up to $64,999 ($79,999 for joint filers).
