9 States That Still Tax Social Security Income in 2025

Core Insights - Social Security serves as a crucial financial support system for American retirees, providing stability during retirement years [1] Taxation of Social Security Benefits - Social Security benefits are considered income and may be subject to taxation, although most states do not impose taxes on these benefits [2] - Nine states currently do not tax Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia [5] - Some states are eliminating their Social Security tax, with West Virginia set to completely remove it starting in tax year 2026 [6] Federal Tax Rules - Federal tax regulations apply universally, meaning that even in states without a Social Security tax, federal taxes may still apply [7] - The IRS calculates the taxable portion of Social Security benefits based on combined income, which includes adjusted gross income (AGI), half of annual Social Security benefits, and any nontaxable interest [8] - Taxable income thresholds vary by filing status, with up to 50% of benefits taxable for singles with a combined income of $25,000 to $34,000, and up to 85% for those earning more than $34,000 [9]