Is Social Security Taxable? The 9 States That Tax Benefits

American retirees are often surprised by this: Social Security benefits can still be taxed at the state level, even after federal taxes are settled. 

And, yes, “Is Social Security taxable?” is a real question with a real (and very “it depends”) answer.

At the federal level, Social Security can be taxed once your “combined income” crosses certain thresholds. Then, depending on where you live, your state may take a slice, too. Today, that short list includes nine states.

Social Security Benefits State Tax Rules

For federal taxes, the key idea is “combined income.” It generally includes your adjusted gross income, any nontaxable interest, and half your Social Security benefits.

Once you pass the base thresholds, up to 50% of your benefits can become taxable and, at higher income levels, up to 85% can become taxable. 

The core thresholds (like $25,000 for single filers and $32,000 for married filing jointly) are widely referenced and still used in 2025 tax filing guidance.

Now for the state piece.

The 9 States That Still Tax Social Security

If you’re trying to figure out which states tax Social Security, here’s the full set:

• Connecticut

• Rhode Island

• Vermont

• West Virginia

• Colorado

• New Mexico

• Utah

• Montana

• Minnesota

To make this list easier to scan, here they are in a rough geographic path from the Northeast down and across the country.

New England: Connecticut, Rhode Island, Vermont

Connecticut (CT)

Connecticut allows filers to deduct all Social Security benefits if they’re under certain income caps. 

Above those caps, the state can tax up to 25% of benefits.

Rhode Island (RI)

Rhode Island has an exemption structure tied to income thresholds, and the state publishes updated annual figures. 

In practice, though, many retirees under the caps end up being fully exempt.

Vermont (VT)

Vermont uses income thresholds that determine whether you get a full exemption, a partial exemption, or no exemption at all. 

The numbers and phaseouts matter here, so be sure to check the current tax-year guidance before assuming you’re in the clear. 

Appalachia: West Virginia

West Virginia (WV)

This is the one that many people are watching. 

West Virginia’s Social Security tax 2025 rules still apply for higher-income filers, but the state has been moving toward eliminating the tax entirely. 

In other words: 2025 may look different than what we hear about next year.

Mountain West and Southwest: Colorado, New Mexico, Utah, Montana

Colorado (CO)

Colorado’s approach is strongly age- and income-shaped. 

Many taxpayers 65+ can deduct Social Security, and some taxpayers 55 - 64 may qualify for deductions, depending on income. 

New Mexico (NM)

New Mexico has expanded its tax exemptions in recent years, and many middle-income retirees may owe no state tax on benefits. 

Just be careful here because higher incomes can still trigger taxation from the state. 

Utah (UT)

Utah can tax Social Security because it starts with federal taxable income, but Utah also offers a retirement tax credit structure that can reduce or offset what you owe, depending on your income. 

This is another “don’t assume” state where it’s still smart to do your calculations.

Montana (MT)

Montana includes taxable Social Security income to the extent it’s taxable federally, and it has its own mechanics for determining what’s taxable at the state level. 

Montana’s own guidance makes it clear that the Montana taxable amount can differ from the federal amount, which is why people often get confused here.

Upper Midwest: Minnesota

Minnesota (MN)

Minnesota taxes Social Security to the extent it’s federally taxable, but it also offers a subtraction for qualifying taxpayers, with income-based phaseouts. 

The details have changed over time, so this one rewards a quick check of the current-year worksheet before you finalize your plan.

A Practical Way To Avoid A Surprise Tax Bill

If you’re close to the federal thresholds, small changes can have outsized effects. Extra withdrawals, part-time income, or investment interest can push more of your benefits into taxable territory. 

At the state level, the safest move is simple: look up your state’s current-year rules before you file, because income cutoffs and phaseouts are where most of the “wait, what?” moments tend to come into play.

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