Which states don't tax Social Security?

Eight states tax Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Every other state leaves benefits untaxed, either because it exempts them or because it has no income tax.

West Virginia is the latest to drop off the list. Its exemption phased in at 35% for 2024 and 65% for 2025, and becomes 100% for tax year 2026, according to the state Tax Division. Kansas, Nebraska, and Missouri also ended their taxes on benefits in recent years.

Being on the list does not mean most retirees pay. Colorado lets residents 65 and older deduct all federally taxed benefits. New Mexico exempts benefits up to $100,000 of income for single filers and $150,000 for joint filers. Connecticut exempts benefits below $75,000 single and $100,000 joint. Utah taxes them but offers a credit. Montana is the least generous of the group. Thresholds change often, so confirm with the state's revenue department.

What the rule of thumb misses: a state that exempts Social Security can still tax your pension, IRA withdrawals, property, and purchases heavily. Look at your total tax bill, not one line.