Which states tax Social Security benefits?

For 2024, Minnesotans with AGIs of up to $82,190 for an individual and up to $105,380 for a couple filing jointly do not have to pay state taxes on their Social Security income. Residents with higher incomes — up to $118,190 for a single filer and $140,380 for couples — may qualify for a partial tax break on their benefits. Above those thresholds, all federally taxable benefits are subject to state income tax.

Residents may use an alternative method to determine taxes they owe on Social Security income, based on how the deduction worked for all beneficiaries before 2023, when lawmakers changed the state’s policy. However, very few taxpayers benefit from using the alternative method, according to a March 2024 report by the Minnesota House Research Department.

Minnesota taxes income at rates ranging from 5.35 percent to 9.85 percent. For more information, contact the Minnesota Department of Revenue.

Montana

Like the federal government, Montana does not tax Social Security for people with overall incomes of less than $25,000 for a single filer and $32,000 for a couple filing jointly. Residents who make more are liable for tax on their benefits, but the state uses a different method than the feds to determine the taxable amount. The state tax form includes a worksheet for calculating the difference.

Montana’s income-tax rates range from 1 percent to 6.75 percent. The top rate will drop to 5.9 percent in the 2024 tax year. For more information, contact the Montana Department of Revenue.

New Mexico

Social Security income is fully deductible for New Mexicans with AGIs below $100,000 for an individual and $150,000 for a couple filing jointly. 

New Mexico taxes income at rates from 1.7 percent to 5.9 percent. For more information contact the New Mexico Taxation & Revenue Department.

Rhode Island

The state does not tax benefits for people who have reached full retirement age as defined by the Social Security Administration (between 66 and 67, depending on year of birth) and have an AGI below $126,250 for a couple filing jointly or $101,000 for a single filer or head of household. If you have not reached full retirement age, or have and your income exceeds those thresholds, your benefits are taxable.

Rhode Island taxes income at rates ranging from 3.75 percent to 5.99 percent. For more information, contact the Rhode Island Department of Revenue’s Division of Taxation.

Utah

Utah uses the federal formula to calculate how much Social Security income is taxable at the state tax rate, which is 4.55 percent, but the state offers a full or partial credit on those taxable benefits.

Married couples filing jointly and heads of households reporting 2023 income of $75,000 or less, and singles making $45,000 or less, qualify for a full tax credit on their benefit income. Those earning more can still get a partial break on their benefits, with the tax credit reduced by 25 cents for each dollar above the income thresholds above.

For more information, contact the Utah State Tax Commission.

Vermont

Single filers with an AGI of $50,000 or less now qualify for a full exemption from paying state taxes on their benefits. Those who make between $50,000 and $60,000 are eligible for a partial exemption. 

For married couples filing jointly, the full exemption applies at incomes of $65,000 or less. The exemption is phased out at incomes between $65,000 and $75,000.

For single filers earning $60,000 or more and couples making $75,000 or more, benefits are fully taxed at the state rate, which ranges from 3.35 percent to 8.75 percent. For more information, contact the Vermont Agency of Administration’s Department of Taxes.

West Virginia

For the 2024 tax year, West Virginians receiving Social Security can subtract 35 percent of their benefits from their state taxable income. For 2025, the deduction is 65 percent, and from 2026 on, Social Security income is fully deductible.

West Virginia’s income-tax rates range from 2.36 percent to 5.12 percent. For more information, contact the West Virginia State Tax Department.

Keep in mind

None of the above applies to Supplemental Security Income, a monthly benefit for people who are 65-plus or have a disability or vision loss and have very low incomes and limited assets. SSI, which is administered by the Social Security Administration, is not subject to income taxes.