Social Security benefits are still taxed in these 8 US states in 2026: Check if your retirement income is at risk and whether you qualify for exemptions

Social Security benefits remain taxable at the state level in eight US states in 2026, and these include Colorado, Minnesota, Connecticut, Montana, New Mexico, Utah, Rhode Island, and Vermont.

Each state has its own rules, exemptions and income limits that determine whether benefits are taxable.

The other 42 states and Washington, DC, do not tax Social Security benefits at the state level. West Virginia joined that group in 2026 after completing its phase-out of the tax.

Which 8 states still tax Social Security benefits?

On the list are Colorado, Minnesota, Connecticut, Montana, New Mexico, Utah, Rhode Island, and Vermont. It is to be noted that the rules differ across these states. Some states offer exemptions based on income and others considering age or tax-filing status.

According to reports, New Mexico exempts Social Security benefits for single taxpayers with adjusted gross income below $100,000 and married couples filing jointly with income below $150,000.

Connecticut provides a full exemption for single filers with adjusted gross income below $75,00 and joint filers below $100,000.

West Virginia completed a three-year phase-out of its state tax Social Security benefits in 2026. Under the schedule, the state allowed a 35% deduction in 2024, increased it to 65% in 2025 and made the deduction 100% in 2026.

Kansas, Missouri and Nebraska have also removed their state taxes on these payments in recent years.

Will retirees in these states have to pay tax?

Not necessarily, as a retiree's tax liability depends on the rules of the state and their financial circumstances. Income from pensions, retirement accounts, investments can affect whether a person qualifies for an exemption.

Minnesota offers an income-based subtraction for Social Security benefits. Vermont also provides a full exemption for some lower-income retirees.

Utah uses a tax credit to offset state income tax on benefits for eligible residents. Meanwhile, Colorado offers deductions based on income as well as age.

Notably, State and federal taxes are separate, and even people living in states that do not tax Social Security benefits may owe federal income tax on part of their payments.