8 States Still Paying Social Security Benefits in 2026

The list of states that levy Social Security taxes has dropped to eight after West Virginia became the latest to phase out its benefits tax.

On Jan. 1, the Mountain State’s Social Security tax was completely cut, ending the three-year phase-out process.

The eight remaining states that charge benefits continue to face backlash from residents and advocacy groups like AARP. By 2025, lawmakers in all those states introduced legislation to eliminate or reduce the tax on Social Security benefits. However, many of these efforts were unsuccessful or failed.

In addition to West Virginia eliminating the tax, the governors of Vermont and Utah signed bills last year that increased their Social Security income tax rate, protecting many taxpayers from having to pay.

Here are the states still charging Social Security benefits in 2026:

In Colorado

Whether a beneficiary must pay state taxes on his or her Social Security benefits in Colorado depends largely on his or her age and income level. Two state lawmakers introduced a bill to reduce these taxes in February, but the efforts quickly failed.

For the 2026 tax year, Coloradans ages 55 to 64 with adjusted gross income of up to $75,000 for single filers or $95,000 if filing jointly can deduct Social Security benefits from their state taxes. But high earners in that age group – and other low earners – must pay taxes on their earnings.

Connecticut

Taxpayers with income over $75,000 for single filers (or $100,000 for couples) face partial taxes on their Social Security benefits. No more than 25% of a taxpayer’s earnings can be subject to taxes, however, limit the burden.

A measure to eliminate income limits to qualify for Social Security tax exemptions was introduced in the Connecticut General Assembly last January. It was referred to the committee and moved forward.

Minnesota

Residents are exempt from state income tax on earnings if their income is $108,320 or less for married couples or $84,490 or less for single filers (starting in the 2025 tax year). That still leaves about 29% of beneficiaries who must pay federal taxes on the benefits.

Minnesota lawmakers introduced bills to eliminate these Social Security taxes early last year. However, the state has estimated that it would cost about 400 million dollars a year to completely eliminate this tax, and those bills did not come out of the tax committees.

Montana

In Montana, taxpayers with adjusted gross income over $32,000 for married couples or over $25,000 for individuals are subject to state tax on Social Security benefits. Up to half of an individual’s Social Security income is taxable if their adjusted gross income is between $25,000 and $34,000.

A state lawmaker’s bill to end the tax failed in May.

In New Mexico

New Mexico significantly reduced its taxes on Social Security benefits through 2022, but stopped short of eliminating them. Single filers earning less than $100,000 and married couples earning less than $150,000 can fully deduct Social Security payments from their taxable income.

Gov. Michelle Lujan Grisham said in an August news release that “about 86% of New Mexico seniors” do not pay income tax.

In February last year, House Bill 293, which would have removed the total revenue to free the state, was postponed indefinitely even though it had reached 15 sponsors.

Rhode Island

Social Security benefits are tax-free if residents reach the full retirement age of 67 and earn below the income limit to qualify for the exemption, which was $107,000 for single filers starting in the 2025 tax year.

Several bills were introduced last year to end or eliminate the federal income tax on high earners, though none succeeded.

Vermont

Lawmakers in Vermont expanded the state’s exemption last year, when Gov. Phil Scott signing Senate Bill 51 in June.

Raised the total exemption limit to $55,000 for single filers, an increase of $5,000. The bill also increased eligibility for the partial exemption for people with income up to $70,000.

Utah

Gov. Spencer Cox signed Senate Bill 71 in March, which revises Utah’s Social Security state taxes.

Citizens are now fully exempt from paying Social Security benefits if their adjusted income is less than $54,000, up from $45,000 previously. For married couples filing jointly, the limit went from $75,000 to $90,000.

The change helps “approximately 90,000 Utah seniors keep their hard-earned income,” according to a Cox release.

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