States That Will or Will Continue to Tax Social Security Benefits in 2025
As of 2025, only nine states will tax Social Security benefits:
* Colorado
* Connecticut
* Minnesota
* Montana
* New Mexico
* Rhode Island
* Utah
* Vermont
* West Virginia
States That Will Not Tax Social Security Benefits in 2025
The remaining 41 states, plus Washington, D.C., will not tax Social Security benefits in 2025. These states include:
* Alabama
* Alaska
* Arizona
* Arkansas
* California
* Delaware
* Florida
* Georgia
* Hawaii
* Idaho
* Illinois
* Indiana
* Iowa
* Kansas
* Kentucky
* Louisiana
* Maine
* Maryland
* Massachusetts
* Michigan
* Mississippi
* Missouri
* Nebraska
* Nevada
* New Hampshire
* New Jersey
* New York
* North Carolina
* North Dakota
* Ohio
* Oklahoma
* Oregon
* Pennsylvania
* South Carolina
* South Dakota
* Tennessee
* Texas
* Virginia
* Washington
* Wisconsin
* Wyoming
* Washington, D.C.
Savings for Retirees
Retirees can save significant amounts in taxes by living in states that do not tax Social Security benefits. For example, in Missouri, retirees save an estimated $309 million per year. In Nebraska, the savings amount to approximately $17 million annually.
State-Specific Exemptions
While some states tax Social Security benefits, they may offer exemptions or deductions for certain individuals. For instance, in Colorado, residents 65 and older can deduct federally taxed Social Security benefits on their state income tax returns. In 2025, this exemption will expand to include those ages 55 to 64 with specific income thresholds.
It is crucial to consult the specific laws and regulations of your state to determine if you will be taxed on Social Security benefits and if any exemptions or deductions may apply.