Most states don’t touch Social Security, but nine still can. Usually only at higher incomes or if you’re not yet full retirement age. Rules differ, so two neighbors can get different results. Use the quick rundowns below to see how your state handles benefits and which levers (timing withdrawals, Roth conversions, withholding) keep more of your check. Keep your federal return handy, because many states start with your federally taxable amount.
1. Colorado
Colorado lets residents 65+ subtract all federally taxable Social Security from state income. Starting in 2025, some ages 55–64 can also subtract the full amount if their AGI stays under set limits. If part-time work or RMDs push you over, consider shifting a late-year capital gain into January or raising paycheck withholding so you’re not surprised in April.
If you toggle between itemizing and the standard deduction, run both ways before you file. Small changes in AGI can flip you from full subtraction to capped pension subtraction rules, changing what the state takes. A quick check mid-fall helps you adjust estimates while there’s still time.
2. Connecticut
Connecticut exempts federally taxable Social Security if federal AGI is below $75,000 (single or MFS) or $100,000 (MFJ or head of household). Above those levels, some households still get relief via a state worksheet, but higher earners can see part of their benefits taxed. If your income varies, revisit CT withholding after big months so you don’t underpay.
Near the threshold? Space out IRA withdrawals or capital gains over two tax years. Keeping AGI under the cap preserves the exemption and often lowers your federal bracket, which reduces the state bite because Connecticut starts from federal amounts.
3. Minnesota
Minnesota follows the federal calculation, then offers a state subtraction that can erase the hit for many filers. For 2025, the subtraction phases out beginning at $108,320 AGI for joint returns and $84,490 for single and head-of-household; an alternative subtraction can be larger in some cases, per Minnesota House Research.
Translation: two similar-income retirees can land in different places based on deductions and investment income. Model both subtraction methods and your deduction choice before filing. If you’re close to the phaseout cliff, shifting a Roth conversion into January can keep more of this year’s benefits untaxed.
4. Montana
Montana taxes Social Security to the extent it’s taxed federally. There’s no separate state-only break, so your federal provisional income drives the state result. The Department of Revenue states that taxable Social Security flows into Montana taxable income to the same extent as federal.
Your best levers are federal: watch combined income, time IRA withdrawals, and consider qualified charitable distributions once eligible. Keeping more of your federal benefit untaxed usually softens the Montana bill because the state starts with the federal number.
5. New Mexico
New Mexico exempts Social Security for most retirees; higher earners can still owe. Since 2022, singles up to $100,000 AGI and joint filers up to $150,000 are fully exempt on benefits, per New Mexico Taxation & Revenue. Above those levels, the federally taxable portion can be taxed.
If your income swings with, for example, consulting gigs or asset sales, check where you land before year-end. Splitting a large gain across two years, offsetting gains with losses, or raising pre-tax deferrals at work can keep you under the thresholds and preserve the exemption.
6. Rhode Island
Rhode Island generally exempts Social Security for residents who have reached full retirement age and meet annual AGI caps. The Division of Taxation’s 2025 retirement income guide explains how the “Social Security Modification” works alongside pension subtractions.
Check your age status and current AGI before setting withholding on pensions or part-time wages. If you’re just over the cap, trimming year-end realized gains or increasing pre-tax contributions can keep benefits fully exempt for the year.
7. Utah
Utah doesn’t carve out Social Security directly; instead, a nonrefundable Social Security benefits credit can wipe out the state tax on your federally taxable amount for many households. As income rises, the credit phases down, so some retirees still owe.
Plan around that credit if you freelance or take contract work. A late-year bonus can shrink the credit and raise your bill, so adjust withholding or estimates when extra income is coming. If you also qualify for Utah’s retirement credit, compare which delivers the bigger offset.
8. Vermont
Vermont offers a full Social Security exemption at lower AGIs and a partial exemption for middle incomes. The state’s 2025 tax expenditure report notes full exemption below $50,000 (single) or $65,000 (joint), with a phaseout over the next $10,000 of income; above those ranges, the federally taxable portion is generally taxed by the state, per the Joint Fiscal Office.
If you’re on the edge, timing matters. Spreading a Roth conversion or pairing a gain with charitable gifts can keep AGI under the full-exemption line. Review Vermont withholding if you add part-time work or take a larger-than-usual IRA distribution.
9. West Virginia
West Virginia is phasing its tax out entirely. The subtraction equals 35% of federally taxable benefits for 2024, 65% for 2025, and 100% for 2026, according to the legislature’s fiscal note on HB 4880.
For 2025, many households will still see some state tax on the remaining 35% if their benefits are taxable federally. If you’re close to retirement, plan 2026 withholding now. When the subtraction hits 100%, your state tax on benefits goes away, which can change your estimates and IRA withdrawal timing.
