Eight states still tax some Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. West Virginia dropped off that list for tax year 2026, when its exemption for benefits reaches 100%, according to the West Virginia Tax Division. The Connecticut General Assembly’s Office of Legislative Research reached the same count in a July 30, 2026 report by Chief Legislative Analyst Rute Pinho.
Seven of the eight exempt or offset the tax on benefits for people under an income limit. The question is whether a household’s income sits above that limit, and the limits differ from state to state, from $54,000 for a single Utah filer to $107,000 for a single Rhode Island filer.
Anyone living in one of the eight, or planning a move to one, should compare their adjusted gross income with the state’s limit before filing for 2026. Federal tax on benefits is a separate calculation, and the states build on it in different ways.
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Which eight states still tax Social Security, and how?
- Colorado: residents 65 and older may subtract all of their benefits, and those 55 to 64 may do so with adjusted gross income of $75,000 or less for a single filer or $95,000 for joint filers, the Colorado Department of Revenue says. Above those levels the cap on the subtraction remains $20,000.
- Connecticut: benefits are fully exempt when federal adjusted gross income is under $75,000 for single filers or under $100,000 for joint filers and heads of household, according to the Department of Revenue Services. Legislative researchers say that above those levels no more than 25% of benefits can be taxed.
- Minnesota: the Department of Revenue lets filers subtract all benefits below $84,490 of income for single and head of household filers and $108,320 for joint filers, then phases the subtraction out by 10% for each $4,000 above that.
- Montana: there is no income exemption. The state starts from federal taxable income, so Montana’s Department of Revenue counts the Social Security that is taxable federally.
- New Mexico: most seniors have been exempt since tax year 2022 when income is under $100,000 for single filers or $150,000 for joint filers and heads of household, Taxation and Revenue says.
- Rhode Island: people at full retirement age are exempt up to $107,000 of income for single filers and heads of household, the Division of Taxation’s retirement guide says, with a higher limit for joint filers.
- Utah: benefits are taxed, but a credit offsets the tax and shrinks above $54,000 of income for single filers and $90,000 for joint filers and heads of household, according to a Utah State Tax Commission training presentation.
- Vermont: the Department of Taxes exempts benefits in full up to $55,000 of income for single filers, with a partial exemption from $55,000 to $64,999 and none at $65,000 or more.
What changed in West Virginia?
West Virginia used to exempt only part of the benefits of higher earners. The Tax Division says the exemption grew to 100% of taxable benefits for lower-income filers in tax year 2022, while filers above those thresholds got a decreasing modification of 35% in 2024 and 65% in 2025. “In Tax Year 2026, it will become a 100% decreasing modification,” the division says.
The Connecticut report agrees, saying West Virginia “allows a 100% exemption starting with the 2026 tax year.” AARP’s April 29 update adds that Kansas, Missouri and Nebraska stopped taxing benefits in 2024, which is why the national count is now eight.
Are these limits the same for 2026?
Not all of them are posted yet. Most state pages show figures that are adjusted for inflation each year, and several carry the previous year’s numbers. Minnesota’s page, last updated Dec. 17, 2025, lists $84,490 and $108,320, while AARP reports $86,410 for single filers and $110,780 for joint filers in 2026.
Rhode Island’s guide, issued in February, applies to tax year 2025 and says adjusted limits are usually posted just before the filing season. AARP noted in late April that the state had not yet set its 2026 figures. Anyone near a limit should check the state’s current return instructions rather than rely on last year’s number.
Where does Montana stand apart?
Montana is the one state with no exemption at all. The Connecticut report calls it “the exception,” saying it taxes the portion of benefits that is taxable for federal income tax purposes. A Montana resident whose benefits are partly taxable on the federal return will see that same portion in the state return.
Colorado and New Mexico work in the opposite direction for most retirees, with exemptions that cover everyone 65 or older in Colorado and everyone under the income line in New Mexico. Utah is the one state that uses a credit, not an exemption, to cut the bill.
What should anyone in these states check for 2026?
The first step is the filing status and income number the state uses, since the Connecticut, Minnesota, Rhode Island and Vermont limits are all measured against adjusted gross income. The second is the age rule, which matters in Colorado and in Rhode Island’s full-retirement-age test.
A household that crosses a limit by a small amount can owe less than it expects in Connecticut, Minnesota and Vermont, where the exemption fades out gradually instead of ending at the line.
Does your state tax your Social Security?
A retiree who lives in one of the eight states, or moves to one, can cross an income line without noticing and owe state tax on benefits that were exempt the year before. The federal tax on benefits stacks on top of that.
Cut Your Retirement Tax Bill: 12 Moves covers your state’s rules, including the eight states that tax some Social Security. It also works out how much of your Social Security is taxed on one worksheet, using 2026 numbers.
Get the state-by-state Social Security tax worksheet guide →
This article was produced with AI assistance and edited for accuracy against the sources linked above.
David M. Keller is a finance writer based in Columbus, Ohio, covering personal finance and consumer-focused economic topics. He earned his degree in journalism from Ohio University and began his career reporting on local business and economic trends for a regional media outlet. Since then, he has contributed to a variety of online publications, focusing on clear, practical coverage of topics such as cost of living, debt, and everyday financial decision-making.
