41 States That Won’t Tax Social Security Benefits in 2025
Where you live can significantly impact how much of your Social Security check you get to keep.
It is declining, and only nine will do so in 2025.
“Each state has its own rules, which can change, such as in the cases of Missouri and Nebraska, where the rules were recently updated.”
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Only Nine States Will Tax Social Security in 2025
Only nine states will tax Social Security benefits in 2025. These include:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Changes to Social Security will begin in 2026.
“Each state has tax provisions that offer deductions for individuals who meet certain income or age requirements, making each state distinct,”
Most states will not tax Social Security in 2025.
In the year 2025, as per the current legislation.
These states are:
- 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
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- Washington, D.C.
- Wyoming
How Much Do Retirees Save on Social Security Taxes in These U.S. States?
To find the effective rate of tax you paid on all your income sources, look up the tax rate for each one, and then apply that rate to your total Social Security benefits.
For instance, if your effective tax rate in your state is 5% and you receive a $30,000 Social Security benefit, you would save $1,500.
Starting with tax year 2022, for 2025, the full exemption will include individuals aged 55 to 64 with an adjusted gross income of $75,000 or less for singles, or $95,000 or less for couples filing jointly.
It's essential to examine the specific tax laws of your state and consider your individual tax circumstances.
Overall, the amount saved by retirees whose benefits aren't subject to taxes is quite significant.
In Nebraska, it's around $17 million. That's a significant amount of money that retirees get to keep in their own pockets, rather than it being taken away by state taxes.
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States That Will Not Tax Social Security Benefits in 2025
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