37 States That Don’t Tax Social Security Benefits

One of the biggest issues of concern to retirees is how much tax is going to be taken out of their Social Security check. Of special interest to retirees is whether their Social Security benefits are taxable at the state level. In this post, we will list the 37 states that don’t tax Social Security benefits.

Many retirees are surprised to learn that they can end up having to pay federal income tax on their Social Security benefits. The federal government taxes up to 85% of your benefits, depending on your income.

In addition, some states also require residents to pay state income tax on their Social Security Benefits.

We have explained in detail below how Social Security benefits are taxed at the federal level. We have then listed the 37 states that don’t tax Social Security benefits.

"37 States That Don't Tax Social Security Benefits"

This Post Will Cover:

When Is Social Security Income Taxable?
Taxable social security benefits calculator
Are Social Security Benefits Taxed at the States Level?
States that Don’t Tax Social Security Benefits

When Is Social Security Income Taxable?

How much of your Social Security is taxed depends on how much income you have from other sources in addition to your benefits.

The more retirement income you have, the more taxes you likely pay.

If you have other sources of retirement income, such as a 401(k), wages from a part-time job, royalties or rental income, then you should expect to pay income taxes on your Social Security benefits.

However, if your only source of income is your Social Security benefits, then you probably won’t pay taxes on your Social Security Benefits.

Taxable Social Security Benefits Calculator

The quick way to see if you will pay taxes on your Social Social Security income is to take one-half of your Social Security benefits and add that amount to all your other income, including tax-exempt interest. This number is known as your combined income as shown below.

If your combined income is above a certain limit you will need to pay at least some tax.

Below are the limits set by the IRS based on if you file taxes as an Individual, Jointly or Married by file Separate.

You will pay tax on only 85 percent of your Social Security benefits, If you:

  • file a federal tax return as an “individual” and your combined income* is
    • between $25,000 and $34,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $34,000, up to 85 percent of your benefits may be taxable.
  • file a joint return, and you and your spouse have a combined income* that is
    • between $32,000 and $44,000, you may have to pay income tax on up to 50 percent of your benefits.
    • more than $44,000, up to 85 percent of your benefits may be taxable.
  • are married and file a separate tax return, you probably will pay taxes on your benefits.

Are Social Security Benefits Taxed at the State Level?

Yes, 13 states have some form of income tax on Social Security benefits. States that tax Social Security benefits do so according to their own regulations.

Even if your benefits are not subject to federal taxes, they could still be subject to state income taxes — and vice versa, depending on your combined income and the state you live in.

Here are the states that DO NOT tax Social Security Benefits:

37 States That Don’t Tax Social Security Benefits

  • Alabama
  • Alaska
  • Arizona
  • Arkansas
  • California
  • Delaware
  • Florida
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Nevada
  • New Hampshire
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • South Dakota
  • Tennessee
  • Texas
  • Virginia
  • Washington
  • Wisconsin
  • Wyoming

If you have any questions about whether Social Security and taxes, please ask us in the comments section below.

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