8 States That Still Tax Social Security Benefits in 2026

The landscape of states taxing Social Security benefits has seen a significant shift, with West Virginia recently joining the ranks of states that have eliminated this tax. The Mountain State completed a three-year phase-out process on Jan. 1, making it one of only eight states that still tax Social Security benefits.

Despite facing pushback from residents and advocacy groups like AARP, efforts to end or limit the taxation of Social Security benefits in these remaining states have stalled or failed to pass. In 2025, lawmakers in all eight states introduced legislation to address this issue, but progress has been slow.

In contrast, Vermont and Utah have taken steps to ease the burden on taxpayers. Last year, both states increased their income thresholds for taxing Social Security benefits, providing relief to a larger number of residents.

Here is a breakdown of the states that still tax Social Security benefits in 2026:

Colorado:
In Colorado, the taxability of Social Security benefits depends on age and income level. While there was a recent bill introduced to reduce these taxes, it failed to gain traction. For the 2026 tax year, individuals aged 55 to 64 with adjusted gross incomes up to $75,000 for single filers or $95,000 for joint filers can deduct their benefits. However, higher earners in this age group and some younger beneficiaries are still subject to taxes on their benefits.

Connecticut:
Taxpayers in Connecticut with incomes over $75,000 for single filers (or $100,000 for couples) face partial taxes on their Social Security benefits. Efforts to eliminate income thresholds for the tax exemption have not advanced in the state legislature.

Minnesota:
Residents in Minnesota are exempt from state taxes on benefits if their incomes fall below certain thresholds. However, nearly 29% of beneficiaries are still subject to state taxes on their benefits. Legislation to end these taxes has faced challenges due to the significant cost implications.

Montana:
In Montana, taxpayers with adjusted gross incomes over specific thresholds are subject to state taxes on Social Security benefits. A recent bill aimed at repealing this tax failed to pass.

New Mexico:
Although New Mexico has reduced taxes on Social Security benefits, they have not been fully eliminated. Legislation to remove the income cap for the state’s exemption did not advance despite gaining support.

Rhode Island:
Social Security benefits are not taxed in Rhode Island for residents who have reached full retirement age and meet income thresholds. Efforts to end or phase out the state’s taxation of benefits have not been successful.

Vermont:
Vermont expanded its exemption for Social Security benefits last year, providing relief to more taxpayers. The state raised the income thresholds for a complete exemption and expanded eligibility for a partial exemption.

Utah:
Utah revised its state Social Security taxes, increasing the income thresholds for a full exemption. This change benefits an estimated 90,000 seniors in the state.

While progress has been made in some states to reduce the tax burden on Social Security benefits, challenges remain in the states that continue to tax these benefits. Advocacy efforts and legislative initiatives will continue to play a crucial role in shaping the future of Social Security taxation across the country.