Introduction
Social Security is a fund that helps to accrue monetary assistance benefits for people in regard to their retirement, disability, and survivor benefits. These funding systems are run by a Federal Government agency of the United States, called the Social Security Administration.
Historically, Social Security first became law under the Social Security Act, which was signed by President Franklin Delano Roosevelt in 1935, after the great depression. The act, which was primarily intended to reduce poverty, was later extended to families of deceased workers and disabled workers, to ensure that dependent families had a monetary safety net.
In the United States today, a majority of states do not include social security benefits in their income tax calculations. However there are more than a dozen states that do tax social security in a variety of ways.
Many of the states that do tax social security offer deductions for retirement income, and many others reduce the level of taxation on social security benefits, especially ones that are conditional on the basis of age. For instance, the state of Colorado permits some taxpayers to subtract part of their social security income so long as they are above the age of fifty-five.
To learn more about states that tax social security, browse the data in the charts.
| State | Social Security Tax Status | Income Tax Rate | Pensions Tax Status | State-Local Tax Burden |
|---|---|---|---|---|
| Alabama | No | 2% | No | 9.8% |
| Alaska | No | 0% | No | 4.6% |
| Arizona | No | 2.59% | Yes | 9.5% |
| Arkansas | No | 2% | Yes | 10.2% |
| California | No | 1% | Yes | 13.5% |
| Delaware | No | 2.2% | Yes | 12.4% |
| Florida | No | 0% | No | 9.1% |
| Georgia | No | 1% | Yes | 8.9% |
| Hawaii | No | 1.4% | No | 14.1% |
| Idaho | No | 1% | Yes | 10.7% |
| Illinois | No | 4.95% | No | 12.9% |
| Indiana | No | 3.23% | Yes | 9.3% |
| Iowa | No | 0.33% | Yes | 11.2% |
| Kentucky | No | 5% | Yes | 9.6% |
| Louisiana | No | 1.85% | Yes | 9.1% |
| Maine | No | 5.8% | Yes | 12.4% |
| Maryland | No | 2% | Yes | 11.3% |
| Massachusetts | No | 5% | Yes | 11.5% |
| Michigan | No | 4.25% | Yes | 8.6% |
| Mississippi | No | 4% | No | 9.8% |
| Missouri | No | 1.5% | Yes | 9.3% |
| Nevada | No | 0% | No | 9.6% |
| New Hampshire | No | 5% | No | 9.6% |
| New Jersey | No | 1.4% | Yes | 13.2% |
| New York | No | 4% | Yes | 15.9% |
| North Carolina | No | 4.99% | Yes | 9.9% |
| Ohio | No | 2.77% | Yes | 10% |
| Oklahoma | No | 0.25% | Yes | 9% |
| Oregon | No | 4.75% | Yes | 10.8% |
| Pennsylvania | No | 3.07% | No | 10.6% |
| South Carolina | No | 0% | Yes | 8.9% |
| South Dakota | No | 0% | No | 8.4% |
| Tennessee | No | 0% | No | 7.6% |
| Texas | No | 0% | No | 8.6% |
| Virginia | No | 2% | Yes | 12.5% |
| Washington | No | 7% | No | 10.7% |
| Wisconsin | No | 3.54% | Yes | 10.9% |
| Wyoming | No | 0% | No | 7.5% |
| Colorado | Yes | 4.55% | Yes | 9.7% |
| Connecticut | Yes | 3% | Yes | 15.4% |
| Kansas | Yes | 3.1% | Yes | 11.2% |
| Minnesota | Yes | 5.35% | Yes | 12.1% |
| Montana | Yes | 1% | Yes | 10.5% |
| Nebraska | Yes | 2.46% | Yes | 11.5% |
| New Mexico | Yes | 1.7% | Yes | 10.2% |
| North Dakota | Yes | 1.1% | Yes | 8.8% |
| Rhode Island | Yes | 3.75% | Yes | 11.4% |
| Utah | Yes | 4.95% | Yes | 12.1% |
| Vermont | Yes | 3.35% | Yes | 13.6% |
| West Virginia | Yes | 3% | Yes | 9.8% |
Social Security Tax Status by State
Alabama
Social Security Tax Status
No
Ranked in the US
#21
Ranked in the US
#20
Alaska
Social Security Tax Status
No
Ranked in the US
#1
Ranked in the US
#1
Arizona
Social Security Tax Status
No
2.59%
Ranked in the US
#27
Ranked in the US
#15
Arkansas
Social Security Tax Status
No
Ranked in the US
#22
Ranked in the US
#25
California
Social Security Tax Status
No
Ranked in the US
#11
Ranked in the US
#47
Colorado
Social Security Tax Status
Yes
4.55%
Ranked in the US
#41
Ranked in the US
#19
Connecticut
Social Security Tax Status
Yes
Ranked in the US
#29
Ranked in the US
#50
Delaware
Social Security Tax Status
No
2.2%
Ranked in the US
#25
Ranked in the US
#42
Florida
Social Security Tax Status
No
Ranked in the US
#2
Ranked in the US
#11
Georgia
Social Security Tax Status
No
Ranked in the US
#12
Ranked in the US
#8
Hawaii
Social Security Tax Status
No
1.4%
Ranked in the US
#16
Ranked in the US
#49
Idaho
Social Security Tax Status
No
Ranked in the US
#13
Ranked in the US
#29
Illinois
Social Security Tax Status
No
4.95%
Ranked in the US
#43
Ranked in the US
#45
Indiana
Social Security Tax Status
No
3.23%
Ranked in the US
#33
Ranked in the US
#13
Iowa
Social Security Tax Status
No
0.33%
Ranked in the US
#10
Ranked in the US
#33
Kansas
Social Security Tax Status
Yes
3.1%
Ranked in the US
#32
Ranked in the US
#34
Kentucky
Social Security Tax Status
No
Ranked in the US
#46
Ranked in the US
#16
Louisiana
Social Security Tax Status
No
1.85%
Ranked in the US
#20
Ranked in the US
#12
Maine
Social Security Tax Status
No
5.8%
Ranked in the US
#50
Ranked in the US
#43
Maryland
Social Security Tax Status
No
Ranked in the US
#23
Ranked in the US
#35
Massachusetts
Social Security Tax Status
No
Ranked in the US
#47
Ranked in the US
#37
Michigan
Social Security Tax Status
No
4.25%
Ranked in the US
#40
Ranked in the US
#5
Minnesota
Social Security Tax Status
Yes
5.35%
Ranked in the US
#49
Ranked in the US
#40
Mississippi
Social Security Tax Status
No
Ranked in the US
#38
Ranked in the US
#21
Missouri
Social Security Tax Status
No
1.5%
Ranked in the US
#18
Ranked in the US
#14
Montana
Social Security Tax Status
Yes
Ranked in the US
#14
Ranked in the US
#27
Nebraska
Social Security Tax Status
Yes
2.46%
Ranked in the US
#26
Ranked in the US
#38
Nevada
Social Security Tax Status
No
Ranked in the US
#3
Ranked in the US
#17
New Hampshire
Social Security Tax Status
No
Ranked in the US
#48
Ranked in the US
#18
New Jersey
Social Security Tax Status
No
1.4%
Ranked in the US
#17
Ranked in the US
#46
New Mexico
Social Security Tax Status
Yes
1.7%
Ranked in the US
#19
Ranked in the US
#26
New York
Social Security Tax Status
No
Ranked in the US
#39
Ranked in the US
#51
North Carolina
Social Security Tax Status
No
4.99%
Ranked in the US
#45
Ranked in the US
#23
North Dakota
Social Security Tax Status
Yes
1.1%
Ranked in the US
#15
Ranked in the US
#7
Ohio
Social Security Tax Status
No
2.77%
Ranked in the US
#28
Ranked in the US
#24
Oklahoma
Social Security Tax Status
No
0.25%
Ranked in the US
#9
Ranked in the US
#10
Oregon
Social Security Tax Status
No
4.75%
Ranked in the US
#42
Ranked in the US
#31
Pennsylvania
Social Security Tax Status
No
3.07%
Ranked in the US
#31
Ranked in the US
#28
Rhode Island
Social Security Tax Status
Yes
3.75%
Ranked in the US
#36
Ranked in the US
#36
South Carolina
Social Security Tax Status
No
Ranked in the US
#4
Ranked in the US
#9
South Dakota
Social Security Tax Status
No
Ranked in the US
#5
Ranked in the US
#4
Tennessee
Social Security Tax Status
No
Ranked in the US
#6
Ranked in the US
#3
Texas
Social Security Tax Status
No
Ranked in the US
#7
Ranked in the US
#6
Utah
Social Security Tax Status
Yes
4.95%
Ranked in the US
#44
Ranked in the US
#41
Vermont
Social Security Tax Status
Yes
3.35%
Ranked in the US
#34
Ranked in the US
#48
Virginia
Social Security Tax Status
No
Ranked in the US
#24
Ranked in the US
#44
Washington
Social Security Tax Status
No
Ranked in the US
#51
Ranked in the US
#30
West Virginia
Social Security Tax Status
Yes
Ranked in the US
#30
Ranked in the US
#22
Wisconsin
Social Security Tax Status
No
3.54%
Ranked in the US
#35
Ranked in the US
#32
Wyoming
Social Security Tax Status
No
Ranked in the US
#8
Ranked in the US
#2