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A portion of Social Security retirement, disability and other benefits is subject to federal income tax if your overall income exceeds a cap the U.S. government sets. Eight states also tax some residents’ Social Security income: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont.
AARP has long lobbied state lawmakers to reduce or eliminate state taxes on Social Security income. Starting this year, West Virginians can fully deduct Social Security from their taxable state income, and Kansas, Missouri and Nebraska stopped taxing benefits in 2024.
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State policies on taxing benefits vary widely. Some follow the federal rules for determining how much of a beneficiary’s Social Security income is taxable: none for people with provisional income below $25,000 for a single filer and $32,000 for a couple filing jointly, and up to 85 percent at higher income levels.
Provisional income is adjusted gross income (AGI) — the figure on line 11 of the IRS 1040 form — plus tax-exempt interest income, plus one-half of Social Security benefit income.
Other states offer their own deductions or exemptions based on age or income, and a few are reducing or eliminating taxation of benefits for most or all older residents.
Here’s what to know for the 2026 tax year if you live in a state that taxes Social Security.
Colorado
Coloradans age 65 and older can fully deduct Social Security benefits from their state income.
Residents in the 55 to 64 age group can deduct all Social Security income from state taxes if their AGI is $75,000 or less for an individual and $95,000 or less for a couple filing jointly. Those with AGIs above the thresholds can deduct up to $20,000 in retirement income, including Social Security payments. For this group, retirement income above that level is taxable at the state’s flat rate of 4.4 percent.
For more information, contact the Colorado Department of Revenue.
Connecticut
State residents can deduct most or all of their benefit income, depending on their AGI.
Single beneficiaries who report an AGI of less than $75,000 and married couples whose AGI is below $100,000 pay no state taxes on their benefits. If your income exceeds those thresholds, you get a partial exemption, but no more than 25 percent of your Social Security benefits can be taxed.
Minnesota
For 2026, Minnesotans with AGIs of up to $86,410 for an individual, and up to $110,780 for a couple filing jointly, do not have to pay state taxes on their Social Security income. Residents with higher incomes — up to $126,410 for a single filer and $150,780 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, doing so is unlikely to benefit taxpayers because the income thresholds for the alternative method are not indexed for inflation, according to 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 4.7 percent to 5.9 percent. 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 individuals and $150,000 for couples filing jointly. Above those limits, you must include the portion of your benefits that is subject to federal income tax in your state taxable income.
New Mexico taxes income at rates from 1.5 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 (66 and 10 months for people born in 1959, 67 for those born in 1960 and later) and have AGIs below certain levels, which are adjusted annually for inflation. As of April 27, the state had not set the thresholds for the 2026 tax year; for 2025, the thresholds were $133,750 for a couple filing jointly or $107,000 for a single filer or head of household.
If you have not reached full retirement age, or you have and your income exceeds the thresholds, your federally taxable benefits are also taxable at the state rates, which range 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 determine how much Social Security income is taxable at the state’s flat rate of 4.5 percent, but it offers a full or partial credit for those taxable benefits.
Married couples filing jointly and heads of households reporting income of $90,000 or less, and singles making $54,000 or less, qualify for a full tax credit on their benefit income. Those earning more can still receive a partial break on their benefits, with the tax credit reduced by 2.5 cents for each dollar above the income thresholds.
For more information, contact the Utah State Tax Commission.
Vermont
Single filers with an AGI of $55,000 or less qualify for a full exemption from paying state taxes on their benefits. Those who make between $55,000 and $65,000 are eligible for a partial exemption.
For married couples filing jointly, the full exemption applies at incomes up to $70,000. The exemption is phased out at incomes between $70,000 and $80,000.
For single filers earning $65,000 or more and couples making $80,000 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.
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 payments, which are administered by the Social Security Administration, are not taxable income.
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