{"id":3045,"date":"2025-03-07T11:44:38","date_gmt":"2025-03-07T11:44:38","guid":{"rendered":"https:\/\/www.soscip.org\/us\/?p=3045"},"modified":"2025-03-07T11:44:39","modified_gmt":"2025-03-07T11:44:39","slug":"the-9-states-will-tax-your-social-security-2025","status":"publish","type":"post","link":"https:\/\/www.soscip.org\/us\/the-9-states-will-tax-your-social-security-2025\/","title":{"rendered":"The 9 States That Will Tax Your Social Security the Most in 2025\u2014Are You Losing Retirement Income?"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">No one enjoys paying taxes\u2014especially after decades of hard work and retirement planning. Yet, many retirees make <strong>one of the biggest financial mistakes<\/strong> by not factoring in how <strong>state and federal taxes<\/strong> will impact their Social Security benefits.<\/p>\n\n\n\n<div class=\"wp-block-rank-math-toc-block\" id=\"rank-math-toc\"><h2>Table of Contents<\/h2><nav><ul><li><a href=\"#how-the-federal-government-taxes-social-security-benefits\">How the Federal Government Taxes Social Security Benefits<\/a><\/li><li><a href=\"#the-41-states-that-wont-tax-your-social-security-benefits\">The 41 States That Won\u2019t Tax Your Social Security Benefits<\/a><\/li><li><a href=\"#the-9-states-that-will-tax-social-security-the-most-in-2025\">The 9 States That Will Tax Social Security the Most in 2025<\/a><\/li><li><a href=\"#how-to-lower-your-social-security-taxes-in-2025\">How to Lower Your Social Security Taxes in 2025<\/a><\/li><li><a href=\"#final-thoughts-are-you-paying-too-much-in-social-security-taxes\">Final Thoughts: Are You Paying Too Much in Social Security Taxes?<\/a><\/li><\/ul><\/nav><\/div>\n\n\n\n<p class=\"wp-block-paragraph\">In 2025, <strong><a href=\"https:\/\/www.soscip.org\/us\/the-9-states-will-tax-your-social-security-2025\/\" data-type=\"link\" data-id=\"https:\/\/www.soscip.org\/us\/the-9-states-will-tax-your-social-security-2025\/\">some states will tax Social Security benefits<\/a> more than others<\/strong>, making it crucial to understand how much of your check you\u2019ll keep. Whether you&#8217;re already retired or planning for the future, knowing where your money will go <strong>can help you make smarter financial decisions<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-the-federal-government-taxes-social-security-benefits\"><strong>How the Federal Government Taxes Social Security Benefits<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Before diving into state-specific rules, let&#8217;s address the <strong>federal government\u2019s role<\/strong> in taxing your Social Security income.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The IRS determines <strong>how much of your benefits are taxable<\/strong> based on your <strong>combined income<\/strong>, which includes:<br>\u2705 <strong>Adjusted Gross Income (AGI)<\/strong><br>\u2705 <strong>Nontaxable interest<\/strong><br>\u2705 <strong>Half of your Social Security benefits<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Depending on your income level, you could be taxed on up to <strong>85% of your Social Security payments<\/strong>:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udcb0 <strong>Single Filers:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your combined income is between <strong>$25,000 and $34,000<\/strong>, up to <strong>50%<\/strong> of your benefits may be taxed.<\/li>\n\n\n\n<li>If it exceeds <strong>$34,000<\/strong>, up to <strong>85%<\/strong> is taxable.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udcb0 <strong>Married Couples Filing Jointly:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>If your combined income is between <strong>$32,000 and $44,000<\/strong>, up to <strong>50%<\/strong> of your benefits may be taxed.<\/li>\n\n\n\n<li>If it exceeds <strong>$44,000<\/strong>, up to <strong>85%<\/strong> is taxable.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">While federal taxes are a given, <strong>state taxes vary widely<\/strong>, making it essential to plan for where you retire.<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/5108-monthly-social-security-check-in-2025\/\" data-type=\"post\" data-id=\"3008\">$5,108 Monthly Social Security Check in 2025: Do You Qualify?<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/claim-967-ssi-payment-social-security-feb-28\/\" data-type=\"post\" data-id=\"2928\">Last Chance to Claim Your $967 SSI Payment: Social Security Check Arrives Early on February 28, 2025<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/1800-ssdi-benefits-arriving-last-week-of-feb\/\" data-type=\"post\" data-id=\"2915\">$1,800 SSDI Benefits Arriving in the Last Week of February: Check Your Eligibility and Payment Date<\/a><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.soscip.org\/us\/social-security-retroactive-payments\/\" data-type=\"post\" data-id=\"3002\">Social Security Retroactive Payments: What Retirees, Public Pensioners, and Families Need to Know<\/a><\/p>\n<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-41-states-that-wont-tax-your-social-security-benefits\"><strong>The 41 States That Won\u2019t Tax Your Social Security Benefits<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The good news? <strong>Most U.S. states and Washington, D.C., do not impose an additional tax on your Social Security benefits<\/strong> beyond what the federal government already collects.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u2705 <strong>States That Do NOT Tax Social Security in 2025:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Alabama<\/li>\n\n\n\n<li>Alaska<\/li>\n\n\n\n<li>Arizona<\/li>\n\n\n\n<li>Arkansas<\/li>\n\n\n\n<li>California<\/li>\n\n\n\n<li>Delaware<\/li>\n\n\n\n<li>Florida<\/li>\n\n\n\n<li>Georgia<\/li>\n\n\n\n<li>Hawaii<\/li>\n\n\n\n<li>Idaho<\/li>\n\n\n\n<li>Illinois<\/li>\n\n\n\n<li>Indiana<\/li>\n\n\n\n<li>Iowa<\/li>\n\n\n\n<li>Kentucky<\/li>\n\n\n\n<li>Louisiana<\/li>\n\n\n\n<li>Maine<\/li>\n\n\n\n<li>Maryland<\/li>\n\n\n\n<li>Massachusetts<\/li>\n\n\n\n<li>Michigan<\/li>\n\n\n\n<li>Mississippi<\/li>\n\n\n\n<li>Missouri<\/li>\n\n\n\n<li>Nevada<\/li>\n\n\n\n<li>New Hampshire<\/li>\n\n\n\n<li>New Jersey<\/li>\n\n\n\n<li>New York<\/li>\n\n\n\n<li>North Carolina<\/li>\n\n\n\n<li>North Dakota<\/li>\n\n\n\n<li>Ohio<\/li>\n\n\n\n<li>Oklahoma<\/li>\n\n\n\n<li>Oregon<\/li>\n\n\n\n<li>Pennsylvania<\/li>\n\n\n\n<li>South Carolina<\/li>\n\n\n\n<li>South Dakota<\/li>\n\n\n\n<li>Tennessee<\/li>\n\n\n\n<li>Texas<\/li>\n\n\n\n<li>Virginia<\/li>\n\n\n\n<li>Washington<\/li>\n\n\n\n<li>Washington, D.C.<\/li>\n\n\n\n<li>Wisconsin<\/li>\n\n\n\n<li>Wyoming<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udea8 <strong>But Be Careful!<\/strong> Some of these states <strong>have income limits<\/strong> to qualify for the Social Security tax exemption. For example, in <strong>Missouri<\/strong>, your Social Security benefits are only <strong>fully tax-exempt if your AGI is below $85,000 (single) or $100,000 (joint filers).<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"the-9-states-that-will-tax-social-security-the-most-in-2025\"><strong>The 9 States That Will Tax Social Security the Most in 2025<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If your state isn\u2019t on the list above, <strong>you may be paying more in Social Security taxes<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udcc9 <strong>These 9 states still tax Social Security benefits, but with some exceptions:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th><strong>State<\/strong><\/th><th><strong>Single Filer Exemption<\/strong><\/th><th><strong>Joint Filer Exemption<\/strong><\/th><\/tr><\/thead><tbody><tr><td><strong>Colorado<\/strong><\/td><td>Up to <strong>$20,000<\/strong> exemption for retirees aged <strong>55-64<\/strong>, and <strong>$24,000<\/strong> for <strong>65+<\/strong><\/td><td>Same as single filers<\/td><\/tr><tr><td><strong>Connecticut<\/strong><\/td><td>AGI <strong>\u2264 $75,000<\/strong><\/td><td>AGI <strong>\u2264 $100,000<\/strong><\/td><\/tr><tr><td><strong>Kansas<\/strong><\/td><td>AGI <strong>\u2264 $75,000<\/strong><\/td><td>Same as single filers<\/td><\/tr><tr><td><strong>Minnesota<\/strong><\/td><td>AGI <strong>\u2264 $82,190<\/strong><\/td><td>AGI <strong>\u2264 $105,380<\/strong><\/td><\/tr><tr><td><strong>Montana<\/strong><\/td><td>AGI <strong>\u2264 $25,000<\/strong><\/td><td>AGI <strong>\u2264 $32,000<\/strong><\/td><\/tr><tr><td><strong>New Mexico<\/strong><\/td><td>AGI <strong>\u2264 $75,000<\/strong><\/td><td>AGI <strong>\u2264 $100,000<\/strong><\/td><\/tr><tr><td><strong>Rhode Island<\/strong><\/td><td>AGI <strong>\u2264 $88,950<\/strong><\/td><td>AGI <strong>\u2264 $111,200<\/strong><\/td><\/tr><tr><td><strong>Utah<\/strong><\/td><td>Tax credit for incomes <strong>\u2264 $30,000<\/strong><\/td><td>Tax credit for incomes <strong>\u2264 $50,000<\/strong><\/td><\/tr><tr><td><strong>Vermont<\/strong><\/td><td>AGI <strong>\u2264 $50,000<\/strong><\/td><td>AGI <strong>\u2264 $65,000<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udce2 <strong>Special Case: West Virginia<\/strong><br>West Virginia is <strong>gradually phasing out<\/strong> Social Security taxation. By <strong>2026, all retirees in the state will be fully exempt from paying state taxes on their benefits.<\/strong><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"how-to-lower-your-social-security-taxes-in-2025\"><strong>How to Lower Your Social Security Taxes in 2025<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you\u2019re worried about taxes eating away at your Social Security income, consider these strategies:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udccc <strong>1. Move to a Tax-Friendly State<\/strong><br>Relocating to a state that <strong>doesn\u2019t tax Social Security benefits<\/strong> can significantly <strong>increase your retirement income<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udccc <strong>2. Manage Your Income<\/strong><br>Since federal and state Social Security taxes depend on your <strong>AGI<\/strong>, reducing taxable income through <strong>Roth IRA withdrawals or tax-free investments<\/strong> can help you stay below key thresholds.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udccc <strong>3. Take Advantage of State Exemptions<\/strong><br>If you live in a state that <strong>taxes Social Security but offers income-based exemptions<\/strong>, you may qualify for <strong>partial or full tax relief<\/strong> depending on your AGI.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\ud83d\udccc <strong>4. Consider a Roth IRA Conversion<\/strong><br>Since <strong>Roth IRA withdrawals are tax-free<\/strong>, moving funds from a <strong>traditional IRA to a Roth IRA<\/strong> before claiming Social Security can help lower your taxable income in retirement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"final-thoughts-are-you-paying-too-much-in-social-security-taxes\"><strong>Final Thoughts: Are You Paying Too Much in Social Security Taxes?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">With <strong>Social Security taxes increasing in 2025<\/strong> for some retirees, it\u2019s more important than ever to <strong>understand your state\u2019s tax rules<\/strong> and <strong>plan accordingly<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you live in one of the <strong>nine states that tax Social Security<\/strong>, exploring <strong>exemptions, income thresholds, and relocation options<\/strong> could <strong>save you thousands<\/strong> in retirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Are you currently paying state taxes on your Social Security? Thinking about moving to a more tax-friendly state? <strong>Let us know in the comments!<\/strong> \ud83d\udc47<\/p>\n","protected":false},"excerpt":{"rendered":"<p>No one enjoys paying taxes\u2014especially after decades of hard work and retirement planning. Yet, many retirees make one of the biggest financial mistakes by not factoring in how state and federal taxes will impact their Social Security benefits. In 2025, some states will tax Social Security benefits more than others, making it crucial to understand&nbsp;<a class=\"read-more\" href=\"https:\/\/www.soscip.org\/us\/the-9-states-will-tax-your-social-security-2025\/\">Continue reading<\/a><\/p>\n","protected":false},"author":1,"featured_media":3049,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,1],"tags":[],"class_list":["post-3045","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-social-security","category-blog"],"_links":{"self":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/3045","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/comments?post=3045"}],"version-history":[{"count":4,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/3045\/revisions"}],"predecessor-version":[{"id":3050,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/posts\/3045\/revisions\/3050"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media\/3049"}],"wp:attachment":[{"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/media?parent=3045"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/categories?post=3045"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.soscip.org\/us\/wp-json\/wp\/v2\/tags?post=3045"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}