RETIREMENT INCOME TAX · TAX YEAR 2026
States that tax Social Security in 2026
Eight states tax some Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. West Virginia stopped in 2026. Every other state exempts benefits or has no income tax.
Your estimate
- California income tax
- $51.44
- Federal income tax
- $1,810.00
- Total income tax
- $1,861.44
Subtracted from California income
- Social Security
- $11,300.00
California credits
- Senior exemption credit
- $158.00
California does not follow the federal senior deduction. The separate $20,000 Survivor Benefit Plan exclusion and the senior head of household credit are not modeled.
How each state taxes Social Security
Benefits taxed are the federally taxable benefits a state leaves in its income after its Social Security subtraction. The first retiree is a single filer aged 67 with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; $11,300 of the benefits is federally taxable. The second is a single filer aged 67 with $30,000 of Social Security, a $50,000 private pension and $40,000 of IRA withdrawals; $25,500 is.
| State | First retiree | Second retiree |
|---|---|---|
| Colorado | $0 | $0 |
| Connecticut | $0 | $7,500 |
| Minnesota | $0 | $20,400 |
| Montana | $11,300 | $25,500 |
| New Mexico | $0 | $25,500 |
| Rhode Island | $0 | $25,500 |
| Utah | $11,300, less a $503 credit | $25,500 |
| Vermont | $0 | $25,500 |
Colorado
Colorado starts from federal taxable income and subtracts taxable benefits by each person's age on December 31. At 65 or older it subtracts all of them. From 55 to 64 it subtracts all of them when federal AGI is $75,000 or less ($95,000 on a joint return) and up to $20,000 above that. Under 55, only survivor benefits qualify. The Social Security subtracted also uses up the same person's pension and IRA subtraction of $24,000 at 65 ($20,000 from 55 to 64).
Connecticut
Connecticut subtracts all taxable benefits when federal AGI is under $75,000 for single filers and married couples filing separately, or under $100,000 for joint filers and heads of household. At or above those amounts, it taxes at most 25% of benefits.
Minnesota
Minnesota subtracts all taxable benefits when federal AGI is $86,410 or less for single filers and heads of household, $110,780 for joint filers and $55,390 for married couples filing separately. The subtraction drops 10% for each $4,000 of AGI above that ($2,000 when filing separately). A second method allows up to $4,560 ($5,840 joint, $2,920 separate), less 20% of provisional income above $69,250 ($88,630 joint, $44,315 separate), and Minnesota uses whichever is larger.
Montana
Montana starts from federal taxable income and has no Social Security subtraction, so it taxes the same share of benefits as the federal return, up to 85%. Each person 65 or older subtracts $5,660 (latest published, 2025) from any income.
New Mexico
New Mexico subtracts all taxable benefits when federal AGI is $100,000 or less for single filers, $150,000 or less for joint filers and heads of household, and $75,000 or less for married couples filing separately. Above the limit, none of it is subtracted.
Rhode Island
Rhode Island subtracts taxable benefits for each person at full retirement age (in 2026, anyone born in 1959 or earlier) when federal AGI is under $107,000 (latest published, 2025) for single filers, heads of household and married couples filing separately, or under $133,750 (latest published, 2025) on a joint return. Above the limit, none of it is subtracted.
Utah
Utah taxes all taxable benefits at its 4.45% rate, then allows a credit of 4.45% of them. The credit shrinks by 2.5 cents for each dollar of income above $54,000 for single filers, $90,000 for joint filers and heads of household, and $45,000 for married couples filing separately.
Vermont
Vermont subtracts all taxable benefits when federal AGI is $55,000 or less ($70,000 on a joint return). The subtraction shrinks evenly as AGI rises and is gone at $65,000 ($80,000 joint). Heads of household and married couples filing separately use the single amounts.
Social Security tax questions
Which states tax Social Security in 2026?
Eight states: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Most of them exempt benefits below an income limit or from a certain age.
Does West Virginia tax Social Security in 2026?
No. From tax year 2026, West Virginia subtracts all Social Security included in federal AGI, at any income. For 2025 it subtracted 65% of benefits when AGI was over $50,000 ($100,000 joint).
Which states don't tax Social Security?
33 states and DC with an income tax exempt Social Security benefits: Alabama, Arizona, Arkansas, California, Delaware, District of Columbia, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Virginia, West Virginia and Wisconsin. The nine states with no income tax, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming, don't tax them either.
Is Social Security taxed federally?
Up to 85% of benefits is federally taxable once provisional income, other income plus half of benefits, passes $25,000 for single filers or $32,000 for joint filers. Of the single retiree's $24,000, $11,300 is taxable.
What these figures leave out
Colorado. Survivor benefits under 55, the PERA/DPSRS 1984-1986 contribution subtraction and railroad retirement are not modeled.
Connecticut. The Connecticut Teachers' Retirement System 50% subtraction (an alternative to the general pension subtraction) and railroad retirement are not modeled.
Minnesota. The public pension subtraction (service without Social Security coverage) is not modeled; it depends on service history.
Montana. The 50% military retirement subtraction (needs Montana earned income) and Tier 1 railroad retirement are not modeled.
New Mexico. Railroad retirement, tribal pensions and the 65+ medical care deduction are not modeled.
Rhode Island. The IRA input is treated as a traditional IRA, which does not qualify; 401(k) and 403(b) payouts would.
Utah. The retirement credit for those born before 1953 is not modeled; it cannot be combined with the Social Security or military credits.
Vermont. The $10,000 exemption for CSRS and other government pensions without Social Security coverage (an alternative to the Social Security exemption) and the elderly credit (24% of the federal Schedule R credit) are not modeled.
West Virginia. State pensions are treated as WV TRS or PERS (the $2,000 exclusion); police, firefighter and federal law enforcement plans, which are fully excluded, are not modeled. Other income entered is split equally on a joint return.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.
Sources
- IRS Publication 915, Social Security benefits
- IRS Revenue Procedure 2025-32
- IRS: deductions for seniors under the One Big Beautiful Bill Act
- Colorado Department of Revenue: Social Security, pensions and annuities
- Colorado 2025 Income Tax Filing Guide (Book 104)
- Connecticut 2025 CT-1040 instructions
- Connecticut General Statutes chapter 229, section 12-701
- Minnesota Social Security benefit subtraction
- Minnesota tax year 2026 inflation-adjusted amounts
- MCA 15-30-2120
- Montana 2025 tax rates and deductions
- New Mexico Social Security income tax exemption
- New Mexico 2025 PIT-ADJ instructions
- Rhode Island Retirement Income Tax Guide (Pub 2026-01)
- Rhode Island ADV 2025-22 inflation adjustments
- Utah Social Security benefits credit
- Utah Code 59-10-1042
- Vermont Social Security exemption
- 32 V.S.A. 5830e
- W. Va. Code 11-21-12