Taxes are unpleasant for everyone, especially after years of diligent labor and retirement preparation.
However, many retirees fail to account for the impact of federal and state taxes on their Social Security income, which is one of the worst financial blunders they can make.
Knowing how much of your check you’ll keep is important because certain states will tax Social Security benefits more than others in 2025.
Knowing where your money will go will help you make better financial decisions, whether you’re planning for the future or are already retired.
How Social Security Benefits Are Taxed by the Federal Government
Let’s talk about how the federal government taxes your Social Security income before getting into state-specific regulations.
The IRS uses your total income, which includes the following, to calculate how much of your benefits are taxable:
Nontaxable interest, adjusted gross income (AGI), and half of your Social Security benefits
Up to 85% of your Social Security benefits may be subject to taxes, depending on your income level:
Individual Filers:
- You may be required to pay taxes on up to 50% of your benefits if your total income is between $25,000 and $34,000.
- Up to 85% of the total is taxed if it surpasses $34,000.
Filing jointly as a married couple:
- You may be required to pay taxes on up to 50% of your benefits if your total income falls between $32,000 and $44,000.
- Up to 85 percent of it is taxable if it surpasses $44,000.
Planning for where you retire is crucial because state taxes differ greatly, even though federal taxes are fixed.
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Your Social Security Benefits Will Not Be Taxed in These 41 States
- 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
The good news? Washington, D.C., and the majority of U.S. states do not tax your Social Security income in addition to what the federal government currently takes in.
In 2025, the following states will not impose social security taxes:
- But Exercise Caution! There are income requirements in several of these states to be eligible for the Social Security tax exemption. For instance, in Missouri, your AGI must be less than $85,000 for single people or $100,000 for joint filers in order for your Social Security benefits to be totally tax-exempt.
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The Top 9 States in 2025 for Social Security Taxes
You might be paying more in Social Security taxes if your state isn’t on the list above.
With a few exceptions, these nine states continue to tax Social Security benefits:
| State | Single Filer Exemption | Joint Filer Exemption |
| Colorado | Up to $20,000 exemption for retirees aged 55-64, and $24,000 for 65+ | Same as single filers |
| Connecticut | AGI ≤ $75,000 | AGI ≤ $100,000 |
| Kansas | AGI ≤ $75,000 | Same as single filers |
| Minnesota | AGI ≤ $82,190 | AGI ≤ $105,380 |
| Montana | AGI ≤ $25,000 | AGI ≤ $32,000 |
| New Mexico | AGI ≤ $75,000 | AGI ≤ $100,000 |
| Rhode Island | AGI ≤ $88,950 | AGI ≤ $111,200 |
| Utah | Tax credit for incomes ≤ $30,000 | Tax credit for incomes ≤ $50,000 |
| Vermont | AGI ≤ $50,000 | AGI ≤ $65,000 |
West Virginia is a special case.
- Social Security taxes are being phased out in West Virginia. All state pensioners will be completely exempt from paying state taxes on their benefits by 2026.
Ways to Reduce Your 2025 Social Security Taxes
Take into account these tactics if you’re concerned about taxes depleting your Social Security income:
Go to a State That Offers Tax Benefits
Moving to a state where Social Security payments are not taxed might greatly boost your retirement income.
Control Your Earnings
Because state and federal Social Security taxes are based on your AGI, you can stay below important thresholds by lowering your taxable income through tax-free investments or withdrawals from a Roth IRA.
Benefit from State Exemptions
You can be eligible for partial or complete tax relief based on your AGI if you reside in a state that charges Social Security but provides income-based exemptions.
Think About Converting to a Roth IRA
Transferring money from a regular IRA to a Roth IRA prior to filing for Social Security can assist reduce your taxable income in retirement because distributions from a Roth IRA are tax-free.
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