- Federal tax return as an “individual” and your “combined income” exceeds $25,000.
- Joint return, and you and your spouse have “combined income” of more than $32,000.
How Much of Your Social Security Income Is Taxable?
Social Security payments have been subject to taxation above certain income limits since 1983.1
But no taxpayer has all their Social Security benefits taxed regardless of their income. The top level is 85% of the total benefit.
You will pay tax on your Social Security benefits based on Internal Revenue Service (IRS) rules if you:
- File a federal tax return as an “individual” and your combined income* is
- Between $25,000 and $34,000, you may have to pay income tax on up to 50% of your benefits.
- More than $34,000, up to 85% of your benefits may be taxable.
- File a joint return, and you and your spouse have a combined income* that is
- Between $32,000 and $44,000, you may have to pay income tax on up to 50% of your benefits.
- More than $44,000, up to 85% of your benefits may be taxable.
- Are married and file a separate tax return, you probably will pay taxes on your benefits.
* Your adjusted gross income
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income“
+ Nontaxable interest
+ ½ of your Social Security benefits
= Your “combined income“
Each January, we mail a Social Security Benefit Statement (Form SSA-1099 or SSA-1042S) showing the amount of benefits you received in the previous year. You can use this Benefit Statement when you complete your federal income tax return to find out if your benefits are subject to tax.
If you misplaced or didn’t receive a Form SSA-1099 or SSA-1042S for the previous tax year, you can get an instant replacement form. You can get the forms with your personal my Social Security account. If you don’t have an account, you can create one at www.ssa.gov/myaccount. To get your replacement Form SSA-1099 or SSA-1042S, select the “Replace Your Tax Form SSA-1099/SSA-1042S” link. Go to the “Choose a year” dropdown menu. Then choose the year for any of the past 6 years for which benefits were paid and select “Download” link. If you live outside the U.S., go to www.ssa.gov/foreign and learn how you can access our online services with an ID.me account.
Social Security Benefits Tax Tool
These straightforward examples may not apply to you. The IRS’s Interactive Tax Assistant (ITA) will lead you through the possible complications and calculate what part of your income is taxable.7 IRS Notice 703 describes the tax rules for benefits.
Which States Don’t Tax Social Security Benefits?
Below is a list of the nine states that levy a tax on Social Security benefits, with details on each state’s policy.
- Colorado: Colorado taxes Social Security benefits only on recipients under age 65. The income tax rate is a flat 4.4%.
- Connecticut: Connecticut’s Social Security income tax rate ranges from 3% to 6.99%. Depending on AGI and filing status, retirees are able to deduct most or all of their benefit income. Specifically, beneficiaries pay no state taxes on their benefits if their AGI is less than $75,000 (for a single filer or head of household) or $100,000 (for a married couple filing jointly.) Above these thresholds, 75% of Social Security income is still tax-exempt.
- Minnesota: Minnesota uses the same thresholds as the federal government for determining how much of a retiree’s Social Security benefits should be taxed.2 Additionally, those who do owe taxes on their benefits can take advantage of Minnesota’s Social Security Subtraction to secure a partial deduction. Minnesota’s Social Security income tax ranges from 5.35% to 9.85%.
- Montana: In Montana, the Social Security income tax rate ranges from 1% to 6.75%. As with the federal tax, retirees with an AGI of less than $25,000 (single filer) or $32,000 (married filing jointly) are not subject to tax on their Social Security benefits. This is not the case for residents in higher income brackets. Montana uses a different method than the federal government to calculate the amount that someone owes (the state tax form provides a worksheet). The tax rate will drop to 5.9% for the 2024 tax year.
- New Mexico: New Mexico taxes Social Security income at a rate of 1.7% to 5.9%. Like Montana, New Mexico uses the same thresholds as the federal government for exempting lower-income taxpayers. For higher income brackets, Social Security benefits are considered the same as other forms of income for tax purposes. However, single filers and couples filing jointly age 65 and older with AGIs of up to $28,500 and $51,000, respectively, may deduct up to $8,000 in income, which includes Social Security payments.
- Rhode Island: Rhode Island taxes Social Security income at a rate of 3.75% to 5.99%. However, the state doesn’t tax the benefits of retirees who are of full retirement age (i.e., 66–67 years old, depending on the year born) and earn an AGI of less than $101,000 (single filer) or $126,250 (married filing jointly).
- Utah: With a tax rate of 4.55%, Utah, like Minnesota, uses the same formula as the federal government for determining how much of a retiree’s Social Security benefits ought to be taxed.3 However, Utah offers a partial or full credit on taxable benefits. Single filers and couples filing jointly with AGIs of less than $45,000 and $75,000, respectively, are eligible for a full tax credit on their benefit income. Those in a higher income bracket still get a partial tax break, with the credit decreasing by 25 cents for each dollar above the income limits.
- Vermont: In Vermont, single filers with an AGI of up to $50,000 are eligible for a full exemption from state taxation of their Social Security benefits, while those who make $50,001 to $59,999 qualify for a partial exemption. For couples filing jointly, the full exemption applies for those with an AGI of up to $65,000 and is phased out for those with incomes ranging from $65,001 to $74,999. For single filers and couples filing jointly earning at least $55,000 and $70,000, respectively, benefits are fully taxed at the state rate of 3.35% to 8.75%.
- West Virginia: West Virginians who collect Social Security benefits can subtract 35% of their benefits from their state taxable income. For 2025, that deduction increases to 65%. For 2026 and beyond, West Virginians can deduct the entirety of their Social Security benefits.
