26 States That Do Not Tax Your Social Security Benefits

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  1. California

According to the Federation of Tax Administrators, social security is not taxed in California at state level. However, Californians with a taxable income of up to $1 million do have to pay individual income tax rates between 1% and 12.3%. Those with a taxable income exceeding the $1 million threshold, are taxed an additional 1 percent, in which case the state’s maximum tax rate becomes 13.3%.

If you’re thinking of spending your golden years in the Golden State, here are 10 Ways To Make the Most Out of Life as a Retiree.

 

  1. Indiana

When it comes to the personal income tax, Indiana levies a 3.23 percent. The good news is there’s no tax for Social Security benefits. Future Indiana retirees will also be glad to find out that the Hosier State has been named the fifth-most affordable state for homebuyers, according to a 2020 SmartAsset analysis.

“The Hoosier State has the second-lowest average closing costs in the study, at $2,627. Indiana also is tied for the fifth-lowest median listing price per square foot, at $108. It has the seventh-lowest median listing price overall, at $186,000,” as explained in SmartAsset’s “The 10 Most Affordable States to Buy a Home“.

 

  1. Iowa

Iowa is among the moderate tax-friendly states. Residents in Iowa have to pay personal income tax rates ranging from 0.33% to 8.53%. However, Social Security benefits are exempt from the Hawkeye State’s income tax, with those receiving such benefits having a full state income tax protection. You might also like: 14 States Where Your Pension Won’t Get Taxed.

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76 thoughts on “26 States That Do Not Tax Your Social Security Benefits”

  1. Janice E. Prescott

    I think it’s double taxation. First we pay when we make the money, then we pay when we receive what we have paid into, and already been taxed on. I really don’t understand this process. The checks are so small anyway, but take out the God awful taxes, and you could almost make it on what you get. Don’t understand.

    Reply
  2. Verle R Eggleston

    Oklahoma also does not tax Social Security. The taxable portion of Social Security on the federal return is taken as a deduction in arriving at Oklahoma taxable income.

    Reply
  3. Daniel D MacIsaac

    Used to think we lived in the best country in the world. Its sad to see so few impose their will on so many. At one time I could proclaim “this really is a wonderful place to live and bring up a family” without being canceled.
    Its like we can never do enough, as though we have not made significant gains in the past several decades.
    I fell like the abused child or spouse who keeps getting kicked no matter how hard they try.
    Its very difficult staying positive and moving forward with a positive attitude when you are considered enemy number 1 by 50% of the population. All we want is to be left alone to live our lives the way we see fit.
    Not looking for gratitude or validation just peace.

    Reply
  4. I.D. Fendmuhrytz

    There are many more states than listed above that do not tax Social Security benefits as income. In fact, there are only 13 states that do consider Social Security benefits as taxable income.

    Reply
  5. james marok

    people you have to understand and that is SSI IS MONEY GIVEN TO YOU BUT IT IS NOT FUNDED BY OUR MONEY AND SSDI OR RETIREMENT ARE WHAT IS PUT IN BY US AND TAXED WHEN PUT IN AND SO IT IS CONSTANTLY BEING FUNDED.THE REASON YOU SEE AN OFFSET IN PAY IS WHEN THEY DEDUCT FUNDS IT IS CALLED A WINDFALL,MEANING THE SUPPLEMENT THEY PAY YOU IS TAKEN OUT OF YOUR CHECK SO THEY CAN PAYBACK THE UNFUNDED ACCOUNT WITH SSDI OR RETIREMENT FUNDS.COMMON SENSE IS YOU NEED A CONSTANT FLOW OF MONEY GOING THROUGH THE SYSTEM TO KEEP IT RUNNING AND NOT COMPLETELY IMPLODE AND CRASH.

    Reply
  6. Nina Sikes

    someone has to be double taxed in order to support the deplorables who refuse to work. The few working people in this country are taxed to death and it is not going to change.

    Reply
  7. Robert Michael Heinrich

    You may have awakened some states like New Jersey and they will probably started developing a new tax bill already!

    Reply
  9. Elwin P Valberg

    I live in Alabama which I hope is one of the states that doesn’t tax SS income. After bills my increase was
    $12. per month. What about the 5.9% figure I hear being talked about for this year. Is that going to be a
    real number or not. We live paycheck to paycheck so I hope it is for real. Can you send me a list of the 26
    states that don’t tax SS?

    Elwin

    Reply
  10. Ann

    The 26 states are:

    ?
    .
    .?
    I clicked on everything and all I get are ads or the next article or people comments turning this into a political BS.

    Reply

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