States That Don’t Tax Social Security in 2026 (Complete List)
If you’re retired or getting close, here’s one of the most important things to know about where you live: not every state taxes your Social Security benefits the same way. That matters because the state you choose directly affects how much of your check you keep. We factor Social Security tax treatment into our best states to retire in 2026 rankings as one of 10 scoring factors.
The good news? Most states leave your Social Security alone. Out of 50 states, only 8 still tax Social Security benefits in some form as of 2026. That means 42 states either have no income tax at all or specifically exempt Social Security from state taxes.
That’s a big deal. For a retiree collecting $2,000 a month in Social Security, living in the wrong state could cost you hundreds or even thousands of dollars a year in state taxes. Moving to a state that doesn’t tax those benefits keeps more money in your pocket.
The 9 States With No Income Tax
These states don’t have a state income tax at all. That means Social Security, pensions, 401(k) withdrawals, and every other form of income are completely tax-free at the state level.
| State | Income Tax | SS Benefits | Estate Tax |
| Florida | None | Fully exempt | No estate tax |
| Texas | None | Fully exempt | No estate tax |
| Wyoming | None | Fully exempt | No estate tax |
| Nevada | None | Fully exempt | No estate tax |
| Alaska | None | Fully exempt | No estate tax |
| South Dakota | None | Fully exempt | No estate tax |
| Tennessee | None | Fully exempt | No estate tax |
| New Hampshire | No (interest/dividends only) | Fully exempt | No estate tax |
| Washington | None | Fully exempt | Has estate tax |
A quick note on New Hampshire: it technically has no broad income tax, but it does tax interest and dividend income above a certain threshold. Social Security benefits are not affected.
Washington is worth flagging too. It has no income tax, so your Social Security is safe. But it does have an estate tax, which matters if you’re planning to pass on a larger estate.
States With Income Tax but Full Social Security Exemption
These states do have a state income tax, but they completely exempt Social Security benefits. You’ll still pay state tax on other retirement income like pensions or 401(k) withdrawals, but your Social Security check stays untouched.
| State | Income Tax | SS Benefits | COL Note |
| Alabama | Has income tax | Fully exempt | Low cost of living |
| Illinois | Has income tax | Fully exempt | Moderate cost of living |
| Iowa | Has income tax | Fully exempt | Very low cost of living |
| Kentucky | Has income tax | Fully exempt | Very low cost of living |
| Louisiana | Has income tax | Fully exempt | Low cost of living |
| Maryland | Has income tax | Fully exempt | Higher cost of living |
| Mississippi | Has income tax | Fully exempt | Lowest cost of living |
| Pennsylvania | Has income tax | Fully exempt | Moderate cost of living |
| Wisconsin | Has income tax | Fully exempt | Moderate cost of living |
This is where it gets interesting for retirees on a budget. States like Mississippi, Kentucky, and Iowa combine full Social Security exemption with some of the lowest costs of living in the country. The numbers on retiring in Mississippi often surprise people. The state doesn’t tax Social Security, has rock-bottom housing costs, and scores near the top of our overall retirement rankings. Most people don’t think of it as a retirement destination, but the data tells a different story.
The 8 States That Still Tax Social Security (at Least Partially)
As of 2026, these are the only states that tax Social Security benefits in some way. Most offer partial exemptions based on your age or income level, so not everyone pays.
| State | How It Works |
| Colorado | Partial exemption based on age |
| Connecticut | Partial exemption based on income |
| Minnesota | Partial exemption based on income |
| Montana | Partial exemption based on income |
| New Mexico | Partial exemption based on income |
| Rhode Island | Partial exemption based on income |
| Utah | Tax credit that offsets for most retirees |
| Vermont | Partial exemption based on income |
This list has gotten shorter over the years. West Virginia fully phased out its Social Security tax in 2026. Kansas and Nebraska eliminated theirs in 2024. Missouri did the same. The trend is clearly moving toward full exemption everywhere.
If you live in one of these 8 states, check the specific income thresholds. Many retirees with moderate incomes end up paying little or nothing even in these states because of the exemptions and credits available.
Why This Matters More Than You Think
Social Security is the primary income source for about 40% of retirees over 65. For those people, state tax treatment of Social Security isn’t a minor detail. It’s a major factor in how far their money stretches.
Consider a married couple collecting $3,500 per month combined in Social Security. In a state that fully taxes those benefits at a 5% rate, that’s over $2,000 a year going to state taxes. Over a 20-year retirement, that adds up to $40,000 or more.
Now pair that with a state that also has low property taxes and affordable housing, and the gap becomes enormous. If you want to understand how Social Security fits into your total retirement income picture, our Social Security benefits retirement guide breaks down the details.
Best States for Social Security: The Full Picture
If keeping your Social Security tax-free is your top priority, focus on states that combine no SS tax with other retiree-friendly features. Here are five that stand out:
Florida
No income tax at all. Warm weather year-round. The largest retiree population in the country, which means services, communities, and infrastructure built for people over 65. The tradeoff is a higher cost of living in popular areas, but there are still affordable pockets.
Texas
No income tax. Low to moderate cost of living depending on the city. Excellent healthcare options in the major metros. The weather is hot, but if you don’t mind that, it’s one of the most financially friendly states for retirees.
Mississippi
Full Social Security exemption plus a state income tax that doesn’t touch retirement benefits heavily. The lowest cost of living in the country. Healthcare access is more limited in rural areas, but the financial picture is hard to beat.
Alabama
Full Social Security exemption. Very low cost of living. Warm climate. Affordable housing across most of the state. Healthcare quality varies by region, but the Gulf Coast and Birmingham areas have strong medical facilities.
Kentucky
Full Social Security exemption. Extremely affordable housing and overall cost of living. Four seasons without extreme cold. Often overlooked as a retirement destination, but the numbers make a strong case.
What About Federal Taxes on Social Security?
State taxes are only part of the equation. At the federal level, up to 85% of your Social Security benefits may be taxable depending on your combined income.
If your combined income (adjusted gross income + nontaxable interest + half your Social Security) is between $25,000 and $34,000 for single filers, up to 50% of your benefits may be taxed. Above $34,000, up to 85% may be taxable. For married couples filing jointly, those thresholds are $32,000 and $44,000.
This is a federal rule and applies regardless of which state you live in. Choosing a state with no Social Security tax at least removes one layer of taxation from the equation.
The Bottom Line
42 states don’t tax Social Security benefits in 2026. Only 8 still do, and most of those offer partial exemptions. If you’re planning a move in retirement, Social Security tax treatment should be on your checklist alongside cost of living, healthcare, climate, and overall quality of life. For retirees focused on affordability, we also ranked the cheapest states to retire in 2026 using cost of living, housing, and tax data.
