2025 Social Security Tax Changes: 9 States That Will Still Tax Your Benefits

As 2025 approaches, Social Security recipients across the U.S. are keenly interested in whether their benefits will be taxed. While 41 states have decided not to tax Social Security benefits, nine states will continue to impose taxes on these benefits. Below is a look at the states where Social Security benefits will still be taxed in 2025.

States That Will Tax Social Security Benefits in 2025

Colorado

Colorado will continue to tax Social Security benefits in 2025. However, recipients aged 55 to 64 with an adjusted gross income (AGI) of $75,000 or less for individuals (or $95,000 or less for couples filing jointly) can fully deduct their federally taxed benefits at tax time.

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Connecticut

In Connecticut, Social Security benefits are exempt from state taxes for single filers or married individuals filing separately with an AGI below $75,000. Married couples filing jointly with an AGI below $100,000 are also exempt from taxation.

Minnesota

Minnesota offers a tax exemption on Social Security benefits for married filers with an AGI under $105,380 or individuals with an AGI below $82,190.

Montana

Montana provides a tax deduction for all Social Security benefits for single filers with an AGI under $25,000 and joint filers with an AGI under $32,000.

New Mexico

New Mexico has eliminated taxes on Social Security benefits for individuals earning less than $100,000 and married couples making under $150,000.

Rhode Island

In Rhode Island, individuals with an AGI below $88,950 are exempt from paying taxes on Social Security benefits. Married couples with an AGI under $111,200 can also avoid taxes on their benefits.

Utah

Social Security benefits are exempt from taxes in Utah for single filers making less than $30,000 per year, and for married couples earning less than $50,000.

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Vermont

Vermont exempts Social Security benefits from taxes for individuals with incomes below $50,000, and for married couples with combined incomes under $65,000.

West Virginia

West Virginia will phase out state income tax on Social Security benefits over the next three years. For 2025, individuals earning less than $50,000 and married couples making less than $100,000 will be exempt. In 2026, there will be no taxes on Social Security benefits in West Virginia.

These states have exemptions or tax deductions based on income levels, meaning some residents could avoid paying state taxes on their Social Security benefits, depending on their earnings. If you live in one of these states or are considering retiring there, it’s important to stay informed about how state tax laws may impact your Social Security income.

Lailyah Duncan

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