Social Security continues to be a vital source of income for millions of retirees in the United States. According to the AARP, about 40% of Americans aged 65 and older rely on Social Security for at least half of their income. However, the amount retirees ultimately keep depends not just on how much they receive—but also on where they live.
While federal taxes can take a bite out of your Social Security check—up to 85% of benefits can be taxed based on your total income—many states also impose their own taxes. The good news? That list of states is getting shorter.
Only 9 States Will Tax Social Security in 2025
In 2025, just nine states will continue to tax Social Security benefits:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Notably, Kansas recently passed legislation to eliminate Social Security taxes, and West Virginia is in the process of phasing them out completely by 2026.
Brian Kuhn, CFP and financial advisor at Wealth Enhancement Group, emphasized that “the list of states that do not tax Social Security is much longer than those that do. And each state makes its own rules, which sometimes change, including, recently, in Missouri and Nebraska.”
States That Recently Ended Social Security Taxes
Missouri and Nebraska stopped taxing Social Security benefits starting in 2024. Kansas joined them mid-2024, with new legislation eliminating the tax moving forward.
These changes reflect a growing trend of states recognizing the financial burden taxes can place on retirees.
Most States Won’t Tax Social Security in 2025
According to current laws, 41 states and Washington, D.C. will not tax Social Security benefits in 2025. These states are:
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, Wyoming, and Washington, D.C.
How Much Could Retirees Save?
Kuhn suggests retirees can estimate their tax savings by checking their state’s effective tax rate and applying it to their total Social Security benefits. For example, if you received $20,000 in Social Security and your state tax rate is 5%, you could save about $1,000 by living in a state that exempts Social Security income.
However, even in states that still tax benefits, there are often exemptions. In Colorado, for instance, residents aged 65+ have been able to fully deduct Social Security income from their state taxes since 2022. Starting in 2025, the exemption will expand to those aged 55–64 with adjusted gross incomes under $75,000 for individuals or $95,000 for joint filers.
Check Your State’s Rules
While state laws are becoming more retiree-friendly, each state has different rules, thresholds, and deduction options. Retirees are encouraged to review their own state’s tax code or consult with a financial advisor to understand their specific situation.
As state legislatures continue to evaluate tax relief for retirees, more Americans may benefit from keeping more of their Social Security income in the years to come.
