Although thousands and thousands of Americans wouldn’t have to pay taxes on their hard-earned Social Security checks, federal and state tax laws can effectively reduce the payments retirees receive. Nine states still tax Social Security advantages in 2025, but that number could proceed to shrink, with Utah emerging as the newest state to think about ending its tax.
It’s an ongoing movement. While campaigning last yr, President Donald Trump promised to end federal taxes on Social Security, that are paid by about 40% of the roughly 70 million individuals who receive monthly advantages. Nevertheless, he’ll need Congress’s help to make good on that promise, whereas states get to set their very own agenda.
State taxes on Social Security advantages are also being scrutinized. There’s been a trend away from them lately, led by critics who say these taxes unfairly chip away at advantages Americans earned and deserve. Additionally they argue that eliminating or reducing state taxation of Social Security would help older adults cope with the cost-of-living crisis. After years of higher-than-normal inflation, thousands and thousands of beneficiaries are struggling to afford on a regular basis essentials, and nearly a 3rd of retired Americans say they’ve been occupied with going back to work.
Those arguments have been persuasive in lots of parts of the country. Most recently, Kansas and West Virginia passed laws last yr to eliminate or phase out their taxes on Social Security advantages.
And now Utah Gov. Spencer Cox, a Republican who was re-elected in November, is pushing to to finish the state’s tax on Social Security advantages. In line with the Salt Lake Tribune, Cox views his efforts to finish all taxation of advantages in Utah as his “hottest proposal” in years, because it could save certain households nearly $1,000 per yr. Currently, some Social Security advantages in Utah are taxable on the state’s 4.55% income tax rate (though there may be a tax credit completely offsetting that for lower-income households).
If lawmakers in Utah approve the change of their upcoming 2026 budget process, it would depart only a smattering of states with laws that tax advantages. Beyond Utah, here’s where Social Security continues to be taxed in 2025:
Colorado
While Colorado has a state income tax of 4.4%, just some Social Security recipients pay taxes on their advantages. Individuals 65 and older can deduct Social Security for state tax purposes. As of 2025, taxpayers between 55 and 64 whose income falls under certain thresholds can deduct Social Security. Some younger beneficiaries must pay taxes on their advantages.
Connecticut
Retirees in Connecticut only pay state taxes on Social Security advantages if their adjusted gross income is over $75,000 for people or over $100,000 for couples. Even still, 75% of advantages are exempt from state taxes.
Minnesota
In Minnesota, married couples filing jointly avoid taxes if their income falls below $108,320 (For single filers, the cutoff is $84,490.) While higher-income Minnesotans are still subject to taxes, some state lawmakers are actively working to attempt to end all taxation of advantages.
Montana
Montanans with incomes over $32,000 for married couples or over $25,000 for people are subject to state taxes on Social Security advantages. (Deductions can be found to higher-income taxpayers.) A 2023 attempt to finish this taxation was unsuccessful.
Recent Mexico
Most Recent Mexico taxpayers avoid state taxes on Social Security since lawmakers passed laws in 2022 allowing single residents earning under $100,000 and married couples earning under $150,000 to totally deduct Social Security payments from their taxable income. Retirees with incomes above those thresholds are subject to income tax starting from 1.7% to five.9%, including on Social Security advantages.
Rhode Island
In Rhode Island, residents avoid taxes on Social Security in the event that they’ve reached the complete retirement age and their income is below a specific amount ($104,200 for single filers as of 2024). Other retirees pays income taxes, which range from 3.75% to five.99%, on their advantages.
Vermont
Individual taxpayers in Vermont are typically not subject to taxes on advantages if their income is below $50,000. For married couples, the edge is $65,000. But for people earning above those amounts, state taxes quickly begin to kick in and are fully in effect for people earning over $60,000 and couples over $75,000. A bipartisan group of lawmakers is pushing to extend the income thresholds for the state’s Social Security tax.
West Virginia
Taxes on Social Security advantages in West Virginia can be eliminated soon. Higher-earning beneficiaries subject to those taxes have already seen them reduced by 65% under a bill signed last yr. These taxes are being phased out completely by 2026.
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