Understanding social security taxes by state is one of the most important steps in building a retirement income plan. In 2026, only eight states still tax Social Security benefits – and knowing which ones can save retirees thousands of dollars annually.
This guide covers every state’s current rules, the new federal senior deduction, and a direct Virginia vs. Texas comparison for retirees considering relocation.
Social Security in 2026
No SS Tax
Federal SS Tax (2025-28)
Key Takeaways: Social Security Taxes by State (2026)
- Only 8 states tax Social Security in 2026 – down from 13 in 2023
- West Virginia completed its phase-out this year; benefits are now 100% exempt
- Most taxing states offer income-based exemptions protecting lower and middle-income retirees
- A new $6,000 federal deduction (2025-2028) reduces who owes federal SS taxes to just 12% of seniors
- Virginia and Texas – two of Bogart Wealth’s primary markets – both exempt Social Security from state tax
Social Security State Tax Calculator
Use the calculator below to estimate your state-level liability on Social Security benefits. Results are for educational purposes – consult a tax professional for advice specific to your situation. [CALCULATOR WIDGET – retain existing interactive calculator]
How Federal Social Security Taxation Works
Before reviewing social security taxes by state, it helps to understand federal rules. The IRS uses a “combined income” formula to determine how much of your benefit is taxable.
Combined Income = Adjusted Gross Income + Nontaxable Interest + ½ of Annual Social Security Benefits
The IRS explains the full taxation rules in IRS Publication 915, and the Social Security Administration provides a benefits taxation overview for retirees.
Federal Thresholds – Single Filers
- Under $25,000: No federal tax on benefits
- $25,000 – $34,000: Up to 50% of benefits may be taxed
- Over $34,000: Up to 85% of benefits may be taxed
Federal Thresholds – Married Filing Jointly
- Under $32,000: No federal tax on benefits
- $32,000 – $44,000: Up to 50% of benefits may be taxed
- Over $44,000: Up to 85% of benefits may be taxed
These percentages are the portion of benefits subject to taxation – not your actual tax rate. Managing combined income through Roth conversions and withdrawal sequencing is core to our retirement cash flow planning process.
New $6,000 Senior Deduction (2025-2028)
The 2025 tax law added a $6,000 deduction for taxpayers age 65 and older. It phases out by 6% for each dollar of AGI above $75,000 (single) or $150,000 (joint). According to the IRS and White House Council of Economic Advisors, this drops the share of seniors paying federal Social Security taxes from ~40% to roughly 12%.
Strategies like Roth conversions before claiming benefits can help you stay below these thresholds. Our guide on building tax-free wealth covers the most effective approaches.
The 8 States That Tax Social Security Benefits in 2026
Here is how social security taxes by state break down for the eight states still imposing them. Each state handles exemptions differently, so your actual liability depends on age, filing status, and income – not just which state you live in.
| State | Rate Range | Single Threshold | Joint Threshold | Exemption Type |
|---|---|---|---|---|
| Colorado | 4.4% flat | $75,000 (55-64); Full exempt 65+ | $95,000 (55-64); Full exempt 65+ | Income-based deduction |
| Connecticut | 2% – 6.99% | $75,000 | $100,000 | Max 25% of benefits taxed |
| Minnesota | 5.35% – 9.85% | $84,490 | $108,320 | Full subtraction below threshold |
| Montana | 4.7% – 5.9% | N/A | N/A | General retirement deduction |
| New Mexico | 1.7% – 5.9% | $100,000 | $150,000 | Full exemption below threshold |
| Rhode Island | 3.75% – 5.99% | $107,000 (at FRA) | $133,750 (at FRA) | Full exemption at full retirement age |
| Utah | 4.55% flat | Varies | Varies | Tax credit (income-based) |
| Vermont | 3.35% – 8.75% | $50,000 | $65,000 | Full exemption below threshold |
West Virginia completed its phase-out in 2026. Benefits are now 100% exempt from state tax.
42 States That Don’t Tax Social Security
The 42 states and DC with no state Social Security tax include nine states with no income tax at all and 33 states that specifically exempt benefits. When comparing social security taxes by state, it helps to see the full list alongside those that still tax benefits.
No-Income-Tax States
- Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, Wyoming
States With Income Tax That Exempt Social Security
- Alabama, Arizona, Arkansas, California, Delaware, DC, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia, West Virginia, Wisconsin
States That Recently Eliminated Social Security Taxes
- 2026 – West Virginia: Phase-out complete. 100% exemption now in effect.
- 2024 – Missouri: Fully eliminated, saving retirees ~$309 million annually.
- 2024 – Kansas: Eliminated all state Social Security taxation.
- 2024 – Nebraska: Eliminated, saving retirees ~$17 million annually.
- 2023 – North Dakota: Eliminated as part of broader tax reform.
Virginia vs. Texas: Social Security Tax Comparison for Relocating Retirees
When it comes to social security taxes by state, Virginia and Texas are identical – neither taxes benefits. But the broader tax picture matters just as much for retirement planning.
A Virginia retiree with $80,000 AGI (pension and IRA withdrawals) might pay $3,500 – $4,500 in state income tax. Moving to Texas eliminates that. But if that same retiree owns a $600,000 home, Texas property taxes could run $9,600 – $10,800 per year versus $4,500 – $6,000 in many Virginia jurisdictions.
Texas often wins for retirees with substantial investment income and modest home values. Virginia tends to be more favorable for those with lower income but significant real estate. Our retirement planning team can model the full picture for your specific situation.
Should You Relocate to Avoid Social Security Taxes?
Moving to reduce social security taxes by state can make sense – but only as part of a complete financial analysis. The states with no Social Security tax span very different cost-of-living profiles, so the savings calculation varies widely. Here’s how to think through the decision.
Simple Relocation Break-Even Framework
- Calculate your total annual state tax burden in your current state (all income types)
- Calculate the same figure in your target state
- Multiply the annual difference by expected retirement years (20-25)
- Compare to one-time moving costs plus any cost-of-living differences
- If total savings exceed total costs by a meaningful margin, relocation may make financial sense
⚠️ Don’t Optimize One Line Item in Isolation
Social Security tax savings are often a small piece of the total picture. For most retirees, the bigger opportunity is managing federal combined income through Roth conversions, withdrawal sequencing, and qualified charitable distributions – strategies that reduce tax exposure regardless of which state you live in.
Strategies to Minimize Social Security Taxes
These planning approaches reduce your tax burden on Social Security income – at both the federal and state levels. See our full guide on tax-free wealth strategies for deeper coverage of each.
- Manage combined income: Keep AGI below federal thresholds through careful timing of IRA withdrawals and Roth account usage
- Execute Roth conversions early: Converting before you claim benefits reduces future RMDs and combined income – potentially keeping benefits tax-free at the federal level
- Use Health Savings Accounts: HSA withdrawals for qualified medical expenses don’t count toward combined income calculations
- Delay claiming Social Security: A higher benefit at a later age means fewer years of potential taxation – and higher lifetime income
- Qualified charitable distributions: QCDs from IRAs (age 70½+) satisfy RMDs while reducing AGI, potentially keeping you below Social Security tax thresholds
Frequently Asked Questions About Social Security Taxes by State
Which states tax Social Security in 2026?
Eight states tax Social Security in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. West Virginia completed its phase-out this year and now fully exempts benefits. The other 42 states and DC impose no state tax on Social Security income.
Does Virginia tax Social Security benefits?
No. Virginia does not tax Social Security benefits. The state also offers a retirement income deduction of up to $12,000 for residents age 65 and older, reducing taxable pension and IRA income. Virginia’s income tax rates range from 2% to 5.75% on all other taxable income.
Does Texas tax Social Security benefits?
No. Texas has no state income tax, so Social Security benefits and all other forms of retirement income are fully state-tax-free. However, Texas has some of the highest property tax rates in the country, which affects retirees who own homes.
What is the best state to retire to avoid Social Security taxes?
Any of the 42 states that don’t tax Social Security works, but the best state depends on your full income picture. Florida, Texas, Tennessee, and Nevada have no income tax at all. Virginia exempts Social Security and offers retirement deductions despite having an income tax. The right choice depends on your income sources, property, and lifestyle priorities – not just social security taxes by state.
Will West Virginia still tax Social Security in 2026?
No. West Virginia completed its phase-out in 2026. Benefits are now 100% state-tax-exempt. The 2025 tax year offered a 65% deduction as the final transitional step.
How does the $6,000 senior deduction affect Social Security taxes?
For tax years 2025-2028, taxpayers age 65 and older can claim a $6,000 federal deduction reducing taxable income. It phases out by 6% per dollar of AGI above $75,000 (single) or $150,000 (joint). This change means only about 12% of seniors will pay federal taxes on Social Security – down from ~40% previously.
Can I avoid Social Security taxes by moving states?
Moving eliminates state-level Social Security taxes, but federal taxation applies regardless of where you live. For most retirees, managing combined income through Roth conversions and withdrawal sequencing produces more savings than a relocation alone. A full retirement tax analysis should address both federal and state exposure together.
What happens with part-year residency and Social Security taxes?
Tax liability is based on your legal domicile – not where you physically spend time. Establishing domicile requires demonstrating intent through driver’s license, voter registration, and primary residence. Snowbird arrangements between a taxing state and a no-tax state can be effective but require careful legal setup. Consult a tax professional familiar with multi-state taxation before changing your domicile.
Plan Your Retirement Tax Strategy With Bogart Wealth
State-level social security taxes by state are just one piece of a complete retirement income strategy. The most effective plans address federal and state exposure together – through income sequencing, Roth conversions, and Social Security timing decisions that work as a system.
At Bogart Wealth, our advisors serve retirees across Virginia, Texas, and beyond. We bring retirement planning and tax planning together under one roof – so your strategy works as a whole, not just one line item at a time.
Tax rules change regularly. Annual reviews confirm your plan reflects current law and captures new planning opportunities as they emerge.
Schedule a consultation to discuss how these strategies apply to your specific situation.
Last Updated: May 2026 | Next Review: January 2027. Information provided is for educational purposes only and should not be construed as tax advice. Consult a qualified tax professional for your specific situation.
