41 States That Don't Tax Social Security Benefits

Americans work hard and pay taxes throughout their career. When they retire, they no longer have to work as hard.

But paying taxes? That's a different story. Taxes are seemingly inescapable, no matter how old you are.

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However, there's some good news for retirees, depending on where you live. As of 2025, 41 states don't tax Social Security benefits.

Image source: Getty Images.

The nine states that do tax Social Security

Before we get to those 41 states that don't tax Social Security, let's look at the outliers that do. Nine U.S. states continue to require retirees to pay state income taxes on their Social Security benefits:

1. Colorado
2. Connecticut
3. Minnesota
4. Montana
5. New Mexico
6. Rhode Island
7. Utah
8. Vermont
9. West Virginia

Not every retiree will have to pay state taxes on Social Security in these states, though. For example, Connecticut seniors who are single filers or married filing separately are exempt from state taxes on Social Security benefits if their adjusted gross income (AGI) is below $75,000. Those who are married filing jointly or who file as head of household don't have to pay state taxes if their AGI is below $100,000. Minnesota, New Mexico, Rhode Island, and Vermont have similar income tax regulations with different AGI thresholds.

Also, West Virginia is transitioning from taxing Social Security benefits. The Mountain State allows residents to subtract 65% of their Social Security benefits from their AGI in 2025. However, next year, the amount will increase to 100%.

States that don't tax Social Security

Now for the states that don't tax Social Security. The list currently includes 41 states, up from 39 just a couple of years ago:

1. Alabama
2. Alaska
3. Arizona
4. Arkansas
5. California
6. Delaware
7. Florida
8. Georgia
9. Hawaii
10. Idaho
11. Illinois
12. Indiana
13. Iowa
14. Kansas
15. Kentucky
16. Louisiana
17. Maine
18. Maryland
19. Massachusetts
20. Michigan
21. Mississippi
22. Missouri
23. Nebraska
24. Nevada
25. New Hampshire
26. New Jersey
27. New York
28. North Carolina
29. North Dakota
30. Ohio
31. Oklahoma
32. Oregon
33. Pennsylvania
34. South Carolina
35. South Dakota
36. Tennessee
37. Texas
38. Virginia
39. Washington
40. Wisconsin
41. Wyoming

Nine of these states don't tax any income:

• Alaska
• Florida
• Nevada
• New Hampshire
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

Mississippi also recently passed legislation that could phase out its state income tax by 2040. However, specific triggers related to revenue and spending must be met for the Magnolia State's planned tax cuts.

Speaking of Mississippi, it's one of 13 states that don't tax any retirement income from 401(k) plans, IRAs, or pensions. Of course, this list includes the nine states without income taxes. It also includes Illinois, Iowa, and Pennsylvania.

Uncle Sam still has his hand out

Regardless of which state you live in, you could have to pay federal taxes on your Social Security benefits. Whether your benefits will be taxed and how much tax you'll have to pay depends on how much money you make. The table shows what the current levels are:

Data source: Social Security Administration. Table created by author.

To determine your combined annual income, add half of your Social Security benefits plus all other income. Other income includes money received from capital gains, dividends, interest, pensions, and wages.

Could Uncle Sam join the 41 states that don't tax Social Security benefits? Maybe. President Trump has proposed eliminating federal taxes on retirees' Social Security benefits. While the idea is relatively popular, though, it comes with a significant downside: Ending federal taxation on Social Security could speed up how quickly the program's trust funds run out of money.

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