Which States Will Tax Social Security the Most in 2025? Here’s the List

Particularly when they are retired and receiving Social Security, no one likes to pay taxes when they are young.

Nonetheless, they help the government and a lot of the services we depend on every day. Planning your expenses without taking into account the amount of taxes you will have to pay is one of the worst financial errors you can make.

Failure to develop a state-specific tax plan is the second worst case scenario.

If you are not accustomed to studying how taxes impact your Social Security benefits, keep reading because it was recently reported that the states will tax Social Security benefits more in 2025.

Does your Social Security get impacted by federal taxes?

Indeed, while deciding how much of your money will stay with you, this is the first thing to take into account.

According to the finding in this case, your Social Security benefits, along with any other income you may have, could be subject to seizure by the federal government.

Your adjusted gross income (AGI), nontaxable interest, and half of the amount of your Social Security benefits are all included in your combined income. You can use that figure to determine the amount you must pay.

You can receive up to 50% of your Social Security payments if you register as a single person and your combined income is between $25,000 and $34,000, or up to 85% if it is over $34,000.
Couples who earn between $32,000 and $44,000 are eligible for a discount of up to 50%. The percentage will increase to 85% when it surpasses $44,000.

Does your Social Security get affected by state taxes?

It varies. As you are aware, each state has different regulations regarding business, traffic, and firearms. The same is true for tax laws, therefore your state government will require a different amount of Social Security.

Understanding the rules of the state in which you currently reside and plan to retire is so essential.

Analyzing your options and figuring out where your retirement assets will last the longest should be part of your retirement plan.

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In addition to what the federal government receives, your Social Security cheques are now not taxed in 41 states and the District of Columbia. They are:

• Alabama.
• Alaska.
• Arizona.
• Arkansas.
• California.
• Delaware.
• Florida.
• Georgia.
• Hawaii.
• Idaho.
• Illinois.
• Indiana.
• Iowa.
• Kentucky.
• Louisiana.
• Maine.
• Maryland.
• Massachusetts.
• Michigan.
• Mississippi.
• Missouri.
• Nevada.
• New Hampshire.
• New Jersey.
• New York.
• North Carolina.
• North Dakota.
• Ohio.
• Oklahoma.
• Oregon.
• Pennsylvania.
• South Carolina.
• South Dakota.
• Tennessee.
• Texas.
• Virginia.
• Washington.
• Washington, D.C.
• Wisconsin.
• Wyoming.

However, since the exemptions could be linked to income thresholds, you should carefully read the state’s legislation. For instance, in Missouri, if your AGI is less than $85,000 for single filers or $100,000 for joint filers, your Social Security benefits are exempt.

What happens if your state isn’t in the prior list? Then, your Social Security benefits are subject to higher taxes. This category consists of nine states.

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West Virginia is also moving away from imposing taxes on Social Security benefits.

To reduce Social Security taxes based on your AGI, they are using an incremental approach. All residents, regardless of income, will be granted the full exemption in 2026.