• Home
  • Military Discounts
    • Military & Veteran Discount List
    • Local Military and Veterans Discounts
    • Apple Military Discount
    • Veteran & Military Cell Phone Discounts
    • Gym and Health Club Discounts
  • Benefits
    • 10 Veterans Benefits You May Not Know About
    • Top Military Spouse Benefits
    • Medal of Honor: Benefits, History and Facts
    • Purple Heart Benefits
    • Veterans Health A to Z
  • Housing & Home Ownership
    • VA Loan Calculator
    • VA Loan Limits by County
    • VA Home Loan Guide
    • 5 Benefits of a VA Loan
    • 2022 BAH Rates
    • BAH Calculator
  • Money & Finance
    • 2022 Military Pay Charts
    • 2022 Defense Budget
    • 2022 Military Pay
    • 2022 Military Pay Charts
    • COLA Watch 2022-2023
    • Military Pay Calculator
    • Military Pay Dates
    • VA Disability Rates
  • Jobs
    • Veteran Friendly Employers
    • Military Spouse Employment Preference
    • Veterans Employment and Training Service (VETS)
    • Security Clearance Jobs After the Military
  • Education
    • Veteran Friendly Colleges
    • Online Colleges with Military Discounts
    • Veteran Friendly Colleges Guide
    • Military Spouse Career Advancement Accounts (MyCAA)
    • Monthly Housing Allowance (MHA) for the GI Bill
    • Forever GI Bill
  • Resources
    • How to Get a Veterans ID Card
    • Veterans ID on Driver’s License or ID Card by State
    • Military ID Cards
    • Military Calendar
    • State Veteran’s Benefits
Home » States That Don’t Tax Social Security Benefits

States That Don’t Tax Social Security Benefits

List of all 50 states that do and don’t tax social security benefits including dependent, survivor, SSI and SSDI benefits. The federal government does tax up to 85% of social security benefits depending on your income but 38 states tax exempt social security income. Keep in mind this list doesn’t necessarily mean these states are the most tax friendly or best states to retire as some states still have other state income taxes, sales tax or 401k or pension taxes plus there are states with high property taxes.

States That Don't Tax Social Security BenefitsFind out if if there will be a Social Security increase next year with the COLA increase watch.

37 States That Don’t Tax Social Security Benefits Plus Washington D.C.

The following states don’t tax social security benefits. Some states do tax state income tax but don’t tax social security and others simply do not collect any state income tax:

  • Alabama
  • Alaska (no state income tax)
  • Arizona
  • Arkansas
  • California
  • Delaware
  • Florida (no state income tax)
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi
  • Nevada (no state income tax)
  • New Hampshire (no state income tax, dividend and interest taxes only)
  • New Jersey
  • New York
  • North Carolina
  • Ohio
  • Oklahoma
  • Oregon
  • Pennsylvania
  • South Carolina
  • South Dakota (no state income tax)
  • Tennessee (no state income tax, dividend and interest taxes only)
  • Texas (no state income tax)
  • Virginia
  • Washington (no state income tax)
  • Wisconsin
  • Wyoming (no state income tax)
  • Washington D.C.

13 States That Do Tax Social Security Benefits or Partially

Some states reduce the level of taxation applied to Social Security benefits depending on things like age or income level:

  • Colorado (excludes any taxpayer with an adjusted gross income (AGI) less than $75,000 (single filers) or $100,000 (filing jointly))
  • Connecticut
  • Kansas (excludes any taxpayer with an AGI less than $75,000 regardless of filing status)
  • Minnesota (starts with a graduated system with income below $81,180 (single filer) or $103,930 (filing jointly))
  • Missouri (allows a 100% exemption as long as the taxpayer is 62 or older and has less than an AGI of $85,000 (single filer) or $100,000 (filing jointly) in annual income)
  • Montana (starts with a graduated system with income below $36,420 (single filer); Once income exceeds $36,420, 85 percent of Social Security benefits will be taxed)
  • Nebraska
  • New Mexico (low-income taxpayers 65 and older may exempt up to $8,000 of income and gradually phases out at $28,500 (single filer) or $51,000 (filing jointly. All income is exempt for taxpayers who are 100 or older)
  • North Dakota (taxpayers can deduct taxable Social Security benefits if their AGI is less than $50,000 (single filer) or $100,000 (filing jointly))
  • Rhode Island (taxpayers receive a modification who have reached full retirement age as defined by the SSA and have a federal AGI of under $81,900 (single filer) or $102,400 (filing jointly))
  • Vermont (starts with a graduated system with income below $34,000 (single filer) or $44,000 (filing jointly))
  • West Virginia (starts with a graduated system with income below $50,000 (single filer) or $100,000 (filing jointly) the tax will be eliminated by 65 percent; effective 2021 there will be no social security tax for those that meet the minimum income levels)

Note: These lists are not an indicator of being the most tax-friendly states as there are other factors to consider such as property taxes and how pension withdrawals are taxed.


States Where Pensions Aren’t Taxed

Alaska , Florida , Illinois , Mississippi , Nevada , New Hampshire , Pennsylvania , South Dakota , Tennessee , Texas , Washington, and Wyoming. 

Limited Taxes on Pensions: Alabama, Arkansas, Colorado, Delaware, Georgia, Hawaii, Iowa, Kentucky, Louisiana, Maine, Maryland, Michigan, Missouri, Montana, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon, South Carolina, Utah, Virginia, and Wisconsin.

Quick Facts

Alaska and New Hampshire are the only states with no sales, income or Social Security tax.

Alaska also pay a dividend each year from the Alaska Permanent Fund (PFD) and in 2019 it was $1,606 per resident.

Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming have sales taxes but NO state income, Social Security or pension income tax.

Delaware, Montana and Oregon do not have a sales tax. Hawaii has the lowest Sales Tax.

Alabama, Arkansas, Louisiana, Tennessee and Washington have the highest state sales tax (not including local and city taxes).

For the above states you may be eligible for disability-related income (SSDI, SSI) deductions or credits. Federally Adjusted Gross Income (AGI) may also exempt some or all of a recipients taxable portion.

If you live in a U.S. territory (American Samoa, Guam, Northern Marianas Islands, Puerto Rico, U.S. Virgin Islands) or possession and receive Social Security benefits, your benefits may be taxable. (in addition to any U.S. federal income tax liability.)

These States Don’t Tax Social Security & Don’t Tax Military Retirement Pay

  • Alabama (no state income tax)
  • Alaska
  • Arkansas
  • Florida (no state income tax)
  • Hawaii
  • Illinois
  • Iowa
  • Louisiana
  • Maine
  • Massachusetts
  • Michigan
  • Mississippi
  • Nevada (no state income tax)
  • New Hampshire (no state income tax, dividend and interest taxes only)
  • New Jersey
  • New York
  • Ohio
  • Pennsylvania
  • South Dakota (no state income tax)
  • Tennessee (no state income tax, dividend and interest taxes only but will be phased out in 2021)
  • Texas (no state income tax)
  • Washington (no state income tax)
  • Wisconsin
  • Wyoming (no state income tax)

These States Don’t Tax Social Security but do tax a portion of military retirement pay or a have other special provisions

  • Arizona
  • Delaware
  • Georgia
  • Idaho
  • Indiana
  • Kentucky
  • Maryland
  • North Carolina
  • Oklahoma
  • Oregon
  • South Carolina
  • Washington D.C.

Related Articles
Money & Finance COLA
VA Disability Rates Social Security
SSDI Benefits for Veterans States That Don’t Tax Military Retirement Pay

Military + Veteran Discounts

Want 30+ Mil/Vet discounts to use today? Enter your email for updates and we'll send it!
Name(Required)

Popular Articles

2022 VA Disability Rates

2022 Military Pay

Military Pay Calculator

VA Loan Calculator

2022 BAH Rates

Search Veteran.com

Military Benefits Logo

Company

  • About
  • Contact Us
  • Add a Discount
  • Privacy Policy
  • Terms of Use
  • Disclosure
  • Unsubscribe

Quick Links

  • Home
  • Military Discounts
  • Benefits
  • Housing & Ownership
  • Money & Finance
  • Employment
  • Education
  • Resources

Connect With Us

  • facebook
  • instagram
  • pinterest
  • twitter
  • youtube
Copyright © 2022 Three Creeks Media, LLC

Veteran.com is a property of Three Creeks Media. Neither Veteran.com nor Three Creeks Media are associated with or endorsed by the U.S. Departments of Defense or Veterans Affairs. The content on Veteran.com is produced by Three Creeks Media, its partners, affiliates and contractors, any opinions or statements on Veteran.com should not be attributed to the Dept. of Veterans Affairs , the Dept. of Defense or any governmental entity. If you have questions about Veteran programs offered through or by the Dept. of Veterans Affairs, please visit their website at va.gov. The content offered on Veteran.com is for general informational purposes only and may not be relevant to any consumer’s specific situation, this content should not be construed as legal or financial advice. If you have questions of a specific nature consider consulting a financial professional, accountant or attorney to discuss. References to third-party products, rates and offers may change without notice.

Advertising Notice: Veteran.com and Three Creeks Media, its parent and affiliate companies, may receive compensation through advertising placements on Veteran.com; For any rankings or lists on this site, Veteran.com may receive compensation from the companies being ranked and this compensation may affect how, where and in what order products and companies appear in the rankings and lists. If a ranking or list has a company noted to be a “partner” the indicated company is a corporate affiliate of Veteran.com. No tables, rankings or lists are fully comprehensive and do not include all companies or available products.

Editorial Disclosure: Editorial content on Veteran.com may include opinions. Any opinions are those of the author alone, and not those of an advertiser to the site nor of Veteran.com.