Where you live can change how much of your Social Security you actually keep. The good news for most retirees: the large majority of states do not tax Social Security benefits at all, either because they have no income tax or because they specifically exempt benefits.
As of 2026, only nine states tax Social Security benefits to any degree: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont — plus a handful of others in transition. West Virginia completed a multi-year phase-out and fully exempts benefits as of the 2025 tax year.
Even in the states that do tax benefits, most provide generous exemptions tied to age or income, so a typical retiree often owes little or nothing. The thresholds vary widely — a single filer in Vermont is fully exempt under $50,000 of income, while New Mexico's exemption runs up to $100,000. The details matter, which is why we publish a separate plain-language answer for every state.
One thing no state can change: federal tax. Depending on your combined income, the federal government may tax up to 85% of your benefits no matter where you live. Check your own state's answer, then talk to a tax professional about the federal side.
Updated July 2026