If you’re retired, Social Security checks likely play a big role in your finances. Even if you have personal savings, losing a portion of your benefits could make it harder to maintain your lifestyle. Unfortunately, some retirees must give part of their checks back to the government due to taxes.
At the federal level, Social Security benefits are taxed based on your income. But in some states, you may owe additional taxes on your benefits. Here’s what you need to know if you live in one of these nine states.
9 States That Tax Social Security Checks
Over the years, many states have eliminated Social Security benefit taxes, but these nine still impose them:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
However, living in one of these states doesn’t automatically mean you’ll owe taxes on your benefits. Most of these states have exemptions based on income levels.
Generally, retirees with lower or middle incomes may not have to pay. To be sure, check with your state’s tax department or a tax professional. Also check millions of Americans set to receive higher Social Security payments, but taxes might follow for stay updated.
Tax Changes in Colorado and West Virginia for 2025
Some states are changing how they tax Social Security benefits. Here’s what’s new in Colorado and West Virginia:
Colorado
Starting in 2025, retirees aged 55 to 64 with an Adjusted Gross Income (AGI) below $75,000 (single) or $90,000 (married filing jointly) won’t owe state taxes on federally taxable Social Security benefits. This rule already applies to those 65 and older.
West Virginia
In 2025, retirees with an AGI above $50,000 (single) or $100,000 (married filing jointly) will see 65% of their Social Security benefits exempt from state taxes, up from 35% in 2024. If your income is below these limits, you won’t owe state taxes at all. By 2026, West Virginia will stop taxing Social Security benefits completely.
Federal Taxes on Social Security Benefits
While state taxation is changing, federal taxes on Social Security benefits remain the same. These tax rules haven’t been adjusted for inflation in over 30 years, meaning more seniors are paying taxes as incomes rise.
Your provisional income determines how much of your benefits are taxable. This includes:
- Your Adjusted Gross Income (AGI)
- Half of your Social Security benefits
- Any nontaxable interest (such as municipal bond interest)
Here’s how Social Security taxation works at the federal level:
| Marital Status | 0% Taxable if Income Is Below | Up to 50% Taxable if Income Is Between | Up to 85% Taxable if Income Exceeds |
| Single | $25,000 | $25,000 – $34,000 | $34,000 |
| Married | $32,000 | $32,000 – $44,000 | $44,000 |
Since these thresholds aren’t adjusted for inflation, more retirees will likely owe taxes in the future. To reduce your taxable amount, you might consider adjusting your retirement withdrawals or using Roth accounts, which aren’t included in taxable income.
Will Social Security Taxes Be Eliminated?
Former President Donald Trump has proposed eliminating Social Security benefit taxes. However, there’s no clear timeline for when or if this will happen. For now, it’s best to plan as if these taxes will remain. also check what’s impact of SSA cuts under Trump and Musk.
FAQs on Social Security Benefits
1. Can I avoid paying taxes on my Social Security benefits?
Yes, if your income is below the taxable threshold, you won’t owe federal taxes. You may also avoid state taxes depending on where you live and your income level.
2. Which states are planning to stop taxing Social Security benefits?
West Virginia will eliminate Social Security taxes entirely by 2026. Other states may follow, but no official announcements have been made.
3. How can I reduce my taxable Social Security income?
You can lower your taxable income by withdrawing less from retirement accounts, using Roth IRA withdrawals, or spreading out your income sources to stay below the taxable limits.