States That Don't Tax Social Security: A Comprehensive Guide

State Social Security tax can take a big bite out of your disposable income. Luckily, most states provide a full tax exemption for Social Security benefits, although a handful of states do tax them. Some states mimic federal Social Security tax guidelines, while others maintain their own Social Security tax calculations.
States that Tax Social Security Benefits
A few states -- North Dakota, Nebraska, Minnesota, West Virginia and Rhode Island -- tax Social Security benefits to the extent the benefits are taxed at the federal level. As of publication, the federal government only levies a tax on Social Security benefits if your combined income is over $25,000. Individuals with income between $25,000 and $34,000 can expect half of their Social Security benefits to be taxed. If your income is above $34,000, up to 85 percent of the benefits may be subject to tax. Other states -- Montanta, Utah, Colorado, New Mexico, Kansas, Iowa, Missouri and Conneticut -- tax Social Security benefits, and all have distinct calculation methods. All other states do not tax Social Security.
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