Which states tax Social Security benefits?
Nine states are most often cited. In most of them, the tax applies only above an income threshold or after a subtraction, so many residents owe nothing at all.
Nine states are most often cited as taxing benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. West Virginia's tax is being phased out. Every other state, and the District of Columbia, does not tax Social Security benefits.
The states most often cited
| State | Taxes benefits? | What determines the result |
|---|---|---|
| Colorado | Yes, with a subtraction | A state subtraction reduces or eliminates the tax for many older filers; the amount depends on age and income. |
| Connecticut | Yes, above an income threshold | Income-based exemptions and a credit for lower-income filers; the poorest retirees commonly owe nothing. |
| Minnesota | Yes, above an income threshold | A state subtraction is available for some filers; the rest include benefits in Minnesota income. |
| Montana | Yes | A state subtraction is available for certain taxpayers; without it, benefits are part of Montana income. |
| New Mexico | Yes | A low-income exemption applies; above it, benefits are included in state taxable income. |
| Rhode Island | Yes, above an income threshold | An exemption applies to lower-income filers; above it, benefits are taxed at the state rate. |
| Utah | Yes | A retirement credit may offset part of the tax; the credit is income-tested. |
| Vermont | Yes, above an income threshold | Income-based exemptions apply; above them, benefits are included in Vermont income. |
| West Virginia | Phasing out | Legislation enacted in 2022 reduces the state tax on benefits over time. Confirm the treatment for the current tax year. |
No dollar thresholds are listed here on purpose. They change, they differ by filing status and age, and a stale figure is worse than none. Use the state's own instructions for the tax year you are filing.
Why a "yes" in the table often means "no" in practice
A state that taxes benefits usually does not tax the whole benefit for everyone. It applies a subtraction, an exemption, or a credit that phases out with income. A retiree whose only income is Social Security and a small pension frequently falls below every threshold and owes no state tax on the benefit at all.
The states also differ in what they start from. Some begin with federal adjusted gross income, which already contains the taxable portion of benefits calculated under the federal 0%, 50%, 85% tiers. Others begin with federal taxable income. A few apply their own definition. Two retirees with identical benefits can therefore reach different state results depending on the state's starting line, not just its rate.
Why the list of nine is unstable
The count has fallen over time as states repealed or phased out the tax, and it can rise again if a state faces a budget shortfall. West Virginia is the clearest current example of a state moving off the list on a schedule rather than in a single year. A page like this one is a starting point for a search, not a substitute for the state's instructions.
The mechanics of a phase-out matter more than the headline. A state can reduce the taxable share by a percentage that increases annually, raise the exclusion, or replace the tax with a credit. Each produces a different answer in the middle of the transition, and the year you are filing determines which version applies.
What to check with the state
- Residency. Part-year and nonresident rules decide which state can tax which months of benefits.
- Filing status and age. Exemptions and subtractions commonly depend on both.
- The starting figure. Federal AGI, federal taxable income, or a state-specific calculation.
- Whether the provision is permanent. A sunset date or a scheduled phase-out changes the answer next year.
Keep the state's instructions for the specific tax year. Summaries — including this one — are useful for knowing which states to look at, not for computing a liability.
Questions
If I move to a state that does not tax benefits, does the tax stop immediately?
Not necessarily. Most states require a part-year resident return that allocates income to the period of residency, and residency rules differ. A move late in the year rarely eliminates the tax for that year, and the state you left may still tax benefits received while you were a resident.
Do states that tax benefits use the federal provisional income formula?
No. Most start with federal adjusted gross income, which already includes the taxable portion of benefits, and then apply their own subtraction, exemption, or credit. A few use a different starting point. The state result can differ substantially from the federal taxable benefit.
Is West Virginia's tax on benefits still in effect?
West Virginia has been phasing out its tax on Social Security benefits under legislation enacted in 2022. Because the phase-out is scheduled and the legislature can amend it, confirm the current-year treatment with the West Virginia Tax Division before relying on any summary.
Does the 2027 COLA increase state income tax on benefits?
Only in states that tax benefits, and only if the additional benefit exceeds the state's exclusion or credit. In states with fixed dollar thresholds, a larger benefit can push more of it into the taxable range. In states with no tax on benefits, the COLA has no state tax effect.