In 2026, most retirees across the U.S. will not pay state tax on Social Security benefits, but a small group of states still impose taxes under specific conditions.
While the topic is often referred to as “9 states,” the latest 2026 rules confirm only 8 states continue taxing Social Security, after West Virginia fully eliminated its tax starting in 2026.
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Understanding these rules is critical for retirees planning income, relocation, or tax strategies.
States That Still Tax Social Security Benefits in 2026
These 8 states may tax Social Security benefits depending on income limits, age, and filing status:
| State | Tax Status in 2026 | Key Details |
|---|---|---|
| Colorado | Partial tax | Full exemption at age 65+; limits apply for ages 55–64 |
| Connecticut | Income-based tax | Benefits exempt below set AGI thresholds |
| Minnesota | Partial tax | State subtraction reduces taxable benefits |
| Montana | Income-based tax | Lower-income retirees often fully exempt |
| New Mexico | Limited tax | Very high income exemptions protect most retirees |
| Rhode Island | Partial tax | Exemptions based on age and income |
| Utah | Credit system | Tax credit offsets Social Security taxes |
| Vermont | Partial tax | Income-based exemptions apply |
Important Facts You Should Know
- Federal taxes still apply regardless of state rules; up to 85% of benefits may be federally taxable
- Most taxing states offer partial or full exemptions for low- and middle-income retirees
- West Virginia no longer taxes Social Security in 2026, reducing the count from nine to eight
- Strategic planning can significantly reduce or eliminate state taxes
In 2026, only 8 states still tax Social Security benefits, and even in those states, many retirees owe little or nothing due to exemptions and credits. Knowing your state’s rules can help you maximize retirement income, avoid surprises, and make smarter long-term financial decisions.
FAQs
Why do people still say 9 states tax Social Security in 2026?
Because West Virginia taxed benefits through 2025, but it fully ended the tax in 2026.
Do high-income retirees face higher Social Security taxes?
Yes. Most taxing states apply income-based thresholds that affect higher earners.
Can relocating reduce Social Security taxes?
Yes. Moving to a non-taxing state can eliminate state taxes on benefits entirely.