37 States That Don't Tax Social Security Benefits

By The Motley Fool3 days ago


Your Social Security benefits will probably serve as an important source of income once you retire. And one way to stretch those benefits is to limit the amount of taxes you pay on them.

Depending on your income, you may be subject to federal taxes on your benefits. But the state you retire in will dictate whether you're taxed on your benefits at the state level.

Image source: Getty Images.

Who does -- and doesn't -- tax Social Security?

First, the good news. There are 37 states that do not currently impose a tax on Social Security benefits:

  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. California
  6. Delaware
  7. Florida
  8. Georgia
  9. Hawaii
  10. Idaho
  11. Illinois
  12. Indiana
  13. Iowa
  14. Kentucky
  15. Louisiana
  16. Maine
  17. Maryland
  18. Massachusetts
  19. Michigan
  20. Mississippi
  21. Nevada
  22. New Hampshire
  23. New Jersey
  24. New York
  25. North Carolina
  26. Ohio
  27. Oklahoma
  28. Oregon
  29. Pennsylvania
  30. South Carolina
  31. South Dakota
  32. Tennessee
  33. Texas
  34. Virginia
  35. Washington
  36. Wisconsin
  37. Wyoming

If you retire in one of these states, you won't lose a chunk of your benefits to extra taxes, so you may want to consider that when deciding where to settle down for your senior years.

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