Honestly, the way people talk about retirement taxes makes it sound like a math exam you never studied for. You’ve worked decades, paid into the system, and now that you’re finally ready to kick back, you find out the government might want a second helping of your benefits. It feels a little like paying for a pizza, then having someone take a slice back because you decided to eat it in a different room.
But here is the good news: most of the country is actually on your side. As we head into 2026, the map is looking way friendlier than it used to.
The big question—which states don't tax social security—has a surprisingly happy answer. Most of them. In fact, we are down to just a tiny handful of "holdout" states that still dip into your checks.
The 41 States That Let You Keep Your Check
Let’s get the list out of the way first because that’s why you’re here. If you live in one of these places, the state isn’t touching your Social Security. Period.
Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, Wisconsin, and Wyoming.
Wait. Did you see West Virginia?
They used to be on the "naughty" list. Not anymore. As of 2026, they have officially finished phasing out their tax on Social Security benefits. It’s a huge win for retirees in the Mountain State. Nebraska and Missouri also recently joined the tax-free club, making the Midwest a much more attractive place to park your lawn chair.
The "No Income Tax" Heavy Hitters
Some states take it a step further. They don't just ignore your Social Security; they don't have a state income tax at all. You've probably heard of the big ones like Florida and Texas. But there is also Nevada, Wyoming, South Dakota, Washington, and Alaska.
Living there basically means your state tax return is a non-issue. New Hampshire is also in this group now, having finally finished repealing its tax on interest and dividends.
The "Holdout" States: It's Not All Or Nothing
If you didn't see your state above, don't panic. Just because a state can tax Social Security doesn't mean they will tax yours. Most of the remaining eight states have "income cliffs." If you make less than a certain amount, you're still in the clear.
Colorado is a great example. If you’re 65 or older, you can basically deduct all your Social Security from your state taxable income. If you're younger—say you retired early—you still get a decent deduction, but you might pay a little.
New Mexico is another one that sounds scary but usually isn't. They technically tax it, but they have huge exemptions. If you're a single filer making under $100,000, or a joint filer under $150,000, you aren't paying the state a dime on those benefits.
The 2026 "Naughty List"
These are the places where you really need to look at the fine print:
- Connecticut: They use a threshold. If your AGI is under $75,000 (single) or $100,000 (joint), you're exempt.
- Minnesota: They have a special Social Security Subtraction. It’s complicated, but roughly 70% of their retirees don't pay the tax. The high earners, though, definitely feel the bite.
- Montana: They’ve been fiddling with their tax brackets lately. They use the federal calculation, which means if the IRS taxes you, Montana probably will too.
- Rhode Island: You have to be at Full Retirement Age (67 for most) and stay under certain income limits to keep your check tax-free.
- Utah: They give you a tax credit to offset the cost, but it phases out as you make more money.
- Vermont: This is arguably the toughest one. They have some exemptions, but they are lower than most other states.
Why Does This Keep Changing?
States are in a constant "war for retirees." Think about it. Retirees are great for a local economy. You spend money at local shops, you don't put a strain on the school system, and you’re generally stable neighbors. States like West Virginia and Nebraska realized they were losing people to Florida and South Carolina, so they cut the tax to stay competitive.
Even in 2025, there was a massive push in the "One, Big, Beautiful Bill Act" at the federal level that shifted how people think about senior deductions. While that was federal, it put a lot of pressure on state legislatures to follow suit.
The Federal Trap Most People Forget
Here is the "kinda" annoying part. Even if you live in a state like Florida where there's no tax, the IRS might still take a cut. This is what trips people up.
If your "combined income" (that’s your adjusted gross income + non-taxable interest + half your Social Security) is over $25,000 as an individual or $32,000 as a couple, the federal government is going to tax up to 50% to 85% of your benefits.
It’s a bummer, but moving to a tax-friendly state still saves you that extra 4% to 8% you’d be paying to a state governor.
How to Actually Plan This
Don't just pack your bags for the first state you see on a "top 10" list. Tax-free Social Security is great, but it’s just one piece of the puzzle.
- Look at Property Taxes: Texas has no income tax, but their property taxes can be absolute monsters. You might save $2,000 on Social Security taxes and pay an extra $5,000 to the county.
- Sales Tax Matters: Tennessee has no income tax but some of the highest sales taxes in the country. If you’re a big spender, that hurts.
- The "65" Rule: Many states, like Colorado, only become "tax-free" once you hit 65. If you're retiring at 62, those three years could be expensive.
Practical Next Steps
Check your last tax return. Look at your Adjusted Gross Income (AGI). If you’re looking at a state like Connecticut or Rhode Island, see where you land relative to those $75,000 or $100,000 limits.
If you are moving specifically for taxes, run a "shadow" return. Use a tax software and pretend you lived in the new state last year. You might find that a state with a small Social Security tax but very low property taxes actually leaves more money in your pocket than a "tax-free" state.
Also, keep an eye on the 2026 cost-of-living adjustments. The SSA recently bumped benefits by 2.8%, which is great for your wallet, but it might push you over those income "cliffs" in states like Vermont or Utah. A little extra income could accidentally trigger a tax bill if you’re hovering right at the limit.
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The trend is clear: the list of states taxing Social Security is shrinking every year. We’re down to eight, and with the way state legislatures are moving, that number will probably be lower by the time the next election cycle rolls around.