For retirees relying on Social Security benefits, minimizing taxes is a key factor in securing a comfortable retirement. Many states offer tax relief by not taxing Social Security benefits at all. If you’re considering relocation or wondering about your current state’s tax policies, it’s essential to know which states are tax-friendly to Social Security recipients. In this article, we’ll explore the states that will not tax your Social Security benefits in 2025 and explain the latest updates regarding state tax changes.
Which States Don’t Tax Social Security Benefits?
As of 2025, there are a total of 41 states and Washington, D.C., that do not tax Social Security benefits. These states offer retirees some relief, ensuring that Social Security income is not taxed at the state level. Here’s the full list of states that will not tax Social Security benefits in 2025:
- Alabama
- Alaska
- Arizona
- Arkansas
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Virginia
- Washington
- Wisconsin
- Wyoming
- Washington, D.C.
Why This Matters for Retirees
For retirees, Social Security benefits are often the primary source of income. States that exempt Social Security from taxation help maximize the value of those benefits. While these states may not levy a tax on Social Security income, they could impose other types of taxes such as sales taxes, property taxes, or other income taxes, which can affect retirees’ overall financial situation.
States Phasing Out Tax on Social Security
Several states that do tax Social Security benefits are gradually phasing out or offering exemptions. For instance, West Virginia is in the process of eliminating its state tax on Social Security benefits. By 2026, retirees in West Virginia will enjoy a complete exemption from the state income tax on Social Security benefits. In 2024, 35% of benefits will be exempt, 65% in 2025, and by 2026, 100% will be exempt.
Additionally, Colorado is expanding its exemption to include individuals aged 55 to 64 with adjusted gross income (AGI) below certain thresholds. Individual filers can qualify for the full deduction with an AGI limit of $75,000, while joint filers can earn up to $95,000.
The Importance of State Tax Policies for Retirees
It’s important for retirees to consider the tax policies of different states when planning for retirement. States that do not tax Social Security benefits can offer retirees a significant advantage, especially when combined with lower living costs and favorable overall tax policies. States like Florida, Texas, and Wyoming are often attractive to retirees due to their lack of income taxes.
However, even within these states, retirees should be aware of other tax-related factors. Some states may impose higher property or sales taxes, which could offset the benefits of a tax-free Social Security income. It’s important to evaluate the full tax picture, including property taxes, inheritance taxes, and other state-level taxes, before making any decisions.
Conclusion
In 2025, the majority of U.S. states, along with Washington, D.C., will not tax your Social Security benefits, offering tax relief for retirees. States like Florida, Texas, and Washington are particularly popular among retirees due to their no-tax policies on Social Security income. However, while these states provide a tax break on Social Security, it’s vital to consider other state taxes and overall living costs to determine the best state for your retirement.
For more information on how your state taxes Social Security benefits, check out resources from the Social Security Administration.
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