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10 States That Tax Social Security Benefits in 2024

July 13, 2024

3 min Read

Written by Vance Cariaga

Edited by Joe Evans

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Although Social Security benefits are taxable at the federal level, most recipients haven’t had to worry about how to file taxes or pay state income taxes on their benefits. That’s the case in 2024 as well, though residents in some states face state taxes on Social Security.

These are the 10 states that tax Social Security benefits in 2024: Colorado, Connecticut, Kansas, Minnesota, Montana, Nebraska, New Mexico, Rhode Island, Utah and Vermont.

One thing to keep in mind is that the taxes you face will differ from one state to the next. The following states reduce Social Security taxes based on age or income:

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Connecticut: Retirees whose annual adjusted gross income is more than $75,000 for a single filer and $100,000 for joint filers can deduct most or all of their benefit income in Connecticut. People who make more than these thresholds can still deduct 75% of Social Security benefit payments.
Kansas: If your AGI is $75,000 or less, you don’t have to pay state taxes on your benefits in Kansas, no matter your filing status.
Montana: For many retirees in Montana, Social Security is taxable. However, taxpayers who make less than $25,000 a year or ($32,000 for joint filers) can deduct all of their Social Security retirement income. Starting in 2024, Social Security benefits will be taxed in Montana as they are at the federal level.
Nebraska. In the Cornhusker State, Social Security benefits are taxable on a sliding scale based on AGI. Those with incomes below $59,100 (for a married couple) and $44,460 (for an individual) do not have to pay state tax on their benefits. The state will phase out the state income tax on benefits by 2025.
New Mexico. As of 2023, taxes on Social Security benefits in New Mexico have been phased out for individuals earning less than $100,000 a year and married people filing jointly who earn less than $150,000.
Rhode Island: You don’t have to pay taxes on Social Security in Rhode Island if you’ve reached full retirement age and have an AGI that falls below $86,350 (single filers/head of household) or $107,950 (joint filers).
Vermont. Single filers with an AGI of $50,000 or less are fully exempt from paying state taxes on their benefits. You’re eligible for a partial exemption between $50,000 and $60,000. For joint filers, you can get the full exemption for incomes of $65,000 or less and the partial exemption for incomes between $65,000 and $75,000.
Utah: The Beehive State recently adopted its income-based tax credit system to offset Social Security income for single filers earning less than $30,000 yearly and joint filers earning less than $50,000. Those who earn more than those thresholds can still get a partial exemption on their benefits. The tax credit is reduced by 25 cents for each dollar above the income thresholds mentioned above.