13 states tax Social Security benefits. 37 states (+ DC) don't. If minimizing taxes in retirement is a priority, this guide shows you exactly which states to consider (and which to avoid).
Note: Even if a state doesn't tax Social Security, it may still tax other retirement income (pensions, 401k/IRA withdrawals). See our full State Tax Guide for details.
The 13 States That Tax Social Security (2026)
❌ States That Tax SS Benefits
- Colorado (phasing out — fully exempt by 2030)
- Connecticut (only if income above threshold)
- Kansas
- Minnesota
- Montana
- Nebraska (phasing out — fully exempt by 2027)
- New Mexico (partial exemption)
- Rhode Island (only if income above threshold)
- Utah (pension/SS exemption, but means-tested)
- Vermont
- West Virginia (phasing out — fully exempt by 2027)
✅ States That DON'T Tax SS Benefits
- Alabama
- Alaska (also no state income tax at all)
- Arizona
- Arkansas (pension/SS exempt as of 2023)
- California
- Delaware
- DC
- Florida (also no state income tax)
- Georgia (fully exempt as of 2024)
- Hawaii
- Idaho
- Illinois (pension/SS fully exempt)
- Indiana
- Iowa (fully exempt as of 2023)
- Kentucky (fully exempt as of 2023)
- Louisiana
- Maine
- Maryland (exempt for those 65+)
- Massachusetts
- Michigan (pension/SS exempt)
- Mississippi
- Missouri (fully exempt as of 2024)
- Nevada (no state income tax)
- New Hampshire (no state income tax on wages/SS)
- New Jersey (exempt for those 62+)
- New York (exempt for those 59½+)
- North Carolina
- North Dakota
- Ohio (exempt for those 65+)
- Oklahoma
- Oregon (partial exemption for low-income)
- Pennsylvania (pension/SS fully exempt)
- South Carolina
- South Dakota (no state income tax)
- Tennessee (no state income tax)
- Texas (no state income tax)
- Virginia
- Washington (no state income tax)
- Wyoming (no state income tax)
Most Tax-Friendly States for Retirees (2026)
If you're planning to relocate in retirement, these states offer the best overall tax environment (no / low income tax + no SS tax + low property tax):
| State | Social Security Tax | Pension/401k Tax | Property Tax | Sales Tax |
|---|---|---|---|---|
| Florida | ❌ No | ❌ No (no state income tax) | Moderate | 6% |
| Texas | ❌ No | ❌ No (no state income tax) | Moderate | 8.2% |
| Nevada | ❌ No | ❌ No (no state income tax) | Moderate | 8.2% |
| Alaska | ❌ No | ❌ No (no state income tax) | Low | 1.8% (lowest in US!) |
| Wyoming | ❌ No | ❌ No (no state income tax) | Low | 6% |
| South Dakota | ❌ No | ❌ No (no state income tax) | Low | 1.9% |
| Tennessee | ❌ No | ❌ No (no state income tax) | Moderate | 9.5% |
| New Hampshire | ❌ No | ❌ No (no state income tax on wages/SS) | Moderate | 0% (no sales tax) |
| Washington | ❌ No | ❌ No (no state income tax) | Moderate | 9.2% |
Observation: The 9 states with no state income tax are automatically the most retirement-friendly for people with significant 401k/IRA withdrawals. These are: AK, FL, NV, NH, SD, TN, TX, WA, WY.
Good News: 3 States Are Phasing Out SS Tax
Some states that currently tax Social Security are phasing out the tax:
- Colorado: Fully exempt by 2030 (phasing out 20%/year starting 2024)
- Nebraska: Fully exempt by 2027
- West Virginia: Fully exempt by 2027
If you're considering these states, the tax situation will improve in the next few years.
Check Your State's Full Retirement Tax Picture
Social Security is just one piece of retirement tax planning. You also need to consider:
- State tax on pension income
- State tax on 401(k)/IRA withdrawals
- Property taxes (can be very high even in low-income-tax states)
- Sales taxes (some states have no income tax but high sales tax)
🗺️ Explore Our Interactive State Tax Guide
Compare all 50 states across 6 tax dimensions — retirement income, property tax, sales tax, and more.
Open State Tax Guide →Frequently Asked Questions
Is Social Security taxed at the federal level?
Yes. Up to 85% of Social Security benefits are taxable at the federal level if your "provisional income" exceeds $25,000 (single) or $32,000 (MFJ). Moving to a state that doesn't tax SS doesn't eliminate federal tax.
Which state is best for retirees with a large 401(k)?
The 9 states with no state income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY) don't tax 401(k)/IRA withdrawals. Among these, Alaska and South Dakota also have very low property taxes, making them especially attractive.
Do I need to be a full-year resident to avoid SS tax?
Yes. If you're a part-time resident of a state that taxes SS, you may still owe tax on the portion of benefits attributable to your time as a resident. Check the specific state's residency rules.