Social Security Benefits may be taxable both at the federal and state level. Whether federal taxes will tax your benefits depends on your combined income, and whether state taxes will tax your benefits depends on the state in which you live.
In this post, we will highlight the 11 states that tax Social Security benefits.
Additionally, for the 11 states, we will provide details of their tax rates on Social Security.
Are Social Security Taxed?
In addition, if you live in select states, your benefits are subject to state taxes.
13 states have some form of income tax on Social Security benefits.
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.
Which states tax Social Security benefits?
Here is the list of the 11 states that tax Social Security Benefits:
|No, Social Security Benefits are NOT Taxed||Yes, Social Security Benefits ARE TAXED|
|District of Columbia||x|
Details about State Taxes for Social Security
Here are the details of how the 11 states that tax benefits impose Social Security taxes:
- State tax rate: 4.40%
- Taxpayers aged 65 and older can subtract $24,000 or their taxable pension/annuity income (including Social Security benefits) from federal taxable income.
- State income tax rate: 3% to 6.99%
- Exemptions available for Social Security benefits based on income level and filing status.
- State income tax rates: 3.1% to 5.7%
- Social Security benefits exempt if federal adjusted gross income is $75,000 or less, regardless of filing status.
- State income tax rates: 5.35% to 9.85%
- Partial exemption for Social Security payments based on income thresholds; consideration to eliminate taxes on Social Security.
- State income tax rates: 1.50% to 5.40%
- 100% exemption for Social Security if taxpayer is age 62+ and income is below certain thresholds; potential complete elimination in 2024.
- State income tax rates: 1.0% to 6.75%
- Partial deduction for Social Security payments based on income level.
- State income tax rates: 2.46% to 6.84%
- Phasing out tax on Social Security; 40% deduction for 2022, complete elimination by 2025 for some taxpayers.
- State income tax rates: 1.70% to 5.90%
- Most seniors exempt from Social Security taxes in 2022 based on income thresholds.
- State income tax rates: 3.75% to 5.99%
- Exemption for Social Security benefits for full retirement age individuals below certain income levels.
- Flat state income tax rate: 4.85%
- Tax credit for Social Security based on adjusted gross income thresholds.
- State income tax rates: 3.35% to 8.75%
- Exemption for taxpayers with low to middle income levels, varies by filing status.
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