9 States That Will Still Tax Social Security Benefits in 2025

GO Banking Rates recently reported that by 2025, only nine states in the U.S. will continue taxing Social Security benefits. States like Missouri and Kansas are set to stop taxing these benefits in 2024, leaving more retirees with tax-free benefits in the future. If you’re planning for retirement, here’s a breakdown of how Social Security taxes will work in 2025 for some states still imposing them.

Colorado

In 2025, Colorado will still tax Social Security benefits. However, residents aged 55 to 64 with adjusted gross incomes (AGI) of $75,000 or less (individuals) or $95,000 or less (joint filers) can deduct the federally taxed portion of their benefits during tax time.

Connecticut

Connecticut exempts Social Security benefits from state taxes for single filers or married individuals filing separately with AGIs below $75,000. Married couples filing jointly with an AGI under $100,000 also avoid state taxes on these benefits.

Also Read – Man Found Dead in Northeast Albuquerque: Investigation Underway

Minnesota

Minnesota provides exemptions for residents with lower AGIs. Individuals earning less than $82,190 and married couples with AGIs below $105,380 are not taxed on their Social Security benefits.

Montana

Montana exempts Social Security benefits for single filers with AGIs below $25,000 and married filers earning less than $32,000. Those earning above these thresholds will still see their benefits taxed.

New Mexico

New Mexico has eliminated taxes on Social Security benefits for individuals earning less than $100,000 annually and for married couples with incomes under $150,000.

Rhode Island

In Rhode Island, individuals with AGIs below $88,950 and married couples earning less than $111,200 are exempt from state taxes on their Social Security benefits.

Utah

Utah exempts Social Security benefits from taxation for single filers earning less than $30,000 annually and for married couples with incomes below $50,000.

Also Read – Find Out the 2025 California Minimum Wage by City and Industry

Vermont

In Vermont, Social Security benefits are tax-free for individuals earning less than $50,000 annually and married couples with incomes under $65,000.

West Virginia

West Virginia is phasing out taxes on Social Security benefits entirely. For now, individuals earning less than $50,000 and married couples earning below $100,000 are exempt. Starting in 2024, taxes on benefits will decrease by 35%. By 2025, the reduction increases to 65%, and by 2026, no Social Security benefits will be taxed.

Planning for the Future

As more states eliminate Social Security taxes, retirees will face fewer financial burdens. Check your state’s tax policies or consider moving to a tax-friendly state to maximize your benefits.