50-State Social Security Tax & Relocation Optimizer
41 states + DC now exempt 100% of Social Security benefits from state income tax. Examine the exact statutory exemption formulas in the remaining 9 states (CO, CT, MN, MT, NM, RI, UT, VT), simulate AGI cliff thresholds, and model 10-year relocation savings into zero-tax havens.
41 states + DC charge $0 state income tax on Social Security.
CO, CT, MN, MT, NM, RI, UT, VT apply custom AGI subtraction rules.
TN, TX, WA, WY charge 0% tax on wages, pensions, and 401ks.
Fully phased out state taxes on benefits (WV completed in 2026).
Part 1: Your Primary Residence & Income Profile
Part 2: Relocation Destination Comparator
Florida does not tax Social Security benefits under any income level. Your full annual benefit of $26,400 is 100% state tax-free.
✓ 100% State Tax-Free Status
$2,200/month before any tax withholdings.
Portion included on IRS Form 1040 Line 6b.
Amount subject to Colorado income tax after deductions.
Flat 4.40% tax rate applies to any un-deducted taxable benefits.
Statutory Assessment & Exemption Formula Details:
Under Colorado law, taxpayers with federal AGI under $75,000 can deduct 100% of federally taxable Social Security.
Complete 50-State & DC Social Security Tax Directory
Statutory state revenue codes, exemption thresholds, and top marginal rates.
| State / Jurisdiction | Tax Treatment | Exemption Rules & Thresholds | Top Rate | Action |
|---|---|---|---|---|
Alabama(AL) | 100% Tax-Free | 100% exempt from Alabama state income tax under ALA. CODE § 40-18-19. State allows federal tax deduction on state returns. | 5.00% | |
Alaska(AK) | 0% No Income Tax | No state individual income tax. No state sales tax either (local option only). | 0.00% | |
Arizona(AZ) | 100% Tax-Free | 100% exempt from Arizona state income tax (Flat 2.5% income tax rate). Also excludes up to $2,500 in military/civil service pensions. | 2.50% | |
Arkansas(AR) | 100% Tax-Free | 100% exempt from Arkansas state income tax. Allows up to $6,000 exclusion for retirement plan distributions. | 3.90% | |
California(CA) | 100% Tax-Free | 100% exempt from California state income tax (Cal. Rev. & Tax. Code § 17087). Other retirement income (401k/pension) taxed at standard California rates. | 13.30% | |
Colorado(CO) | Partial Rules | Full exemption if federal AGI ≤ $75k (Single) or ≤ $95k (Married). Above thresholds, age 65+ can deduct up to $24,000; ages 55-64 deduct up to $20,000. Flat 4.40% tax rate applies to any un-deducted taxable benefits. | 4.40% | |
Connecticut(CT) | Partial Rules | 100% exempt if Federal AGI is under $75,000 (Single) or $100,000 (Married). Graduated partial deduction applies if AGI exceeds threshold. Beneficiaries above threshold deduct 25% of taxable SS at minimum. | 6.99% | |
Delaware(DE) | 100% Tax-Free | 100% exempt from Delaware state income tax. Allows up to $12,500 pension/retirement exclusion for age 60+. | 6.60% | |
District of Columbia(DC) | 100% Tax-Free | 100% exempt from DC individual income tax (D.C. Code § 47-1803.02). Other retirement distributions subject to standard DC progressive brackets. | 10.75% | |
Florida(FL) | 0% No Income Tax | No state personal income tax under the Florida Constitution (Art. VII, § 5). Premier tax-sheltered destination for retirees. | 0.00% | |
Georgia(GA) | 100% Tax-Free | 100% exempt from Georgia state income tax. Also provides generous retirement exclusion of up to $65,000 per person age 65+. | 5.39% | |
Hawaii(HI) | 100% Tax-Free | 100% exempt from Hawaii state tax (employer-contributed pensions also exempt). Hawaii has high general excise taxes and cost of living. | 11.00% | |
Idaho(ID) | 100% Tax-Free | 100% exempt from Idaho state income tax. Flat 5.695% income tax rate applies to non-exempt retirement income. | 5.70% | |
Illinois(IL) | 100% Tax-Free | 100% exempt from Illinois state tax (all qualified pensions, 401ks, and IRAs also 100% exempt). One of the most tax-friendly states for qualified retirement withdrawals. | 4.95% | |
Indiana(IN) | 100% Tax-Free | 100% exempt from Indiana state income tax (Ind. Code § 6-3-1-3.5). Flat 3.0% state rate + local county income taxes (1-3%). | 3.00% | |
Iowa(IA) | 100% Tax-Free | 100% exempt (Iowa eliminated all state tax on retirement income & Social Security in 2023). Flat 3.8% tax rate phase-in for remaining non-retirement income. | 3.80% | |
Kansas(KS) | 100% Tax-Free | 100% exempt (Kansas Senate Bill 1 fully eliminated state income tax on Social Security). Prior $75,000 cliff threshold has been completely repealed. | 5.58% | |
Kentucky(KY) | 100% Tax-Free | 100% exempt from Kentucky state income tax. Allows up to $31,110 exclusion for other retirement distributions. | 4.00% | |
Louisiana(LA) | 100% Tax-Free | 100% exempt from Louisiana state income tax (La. R.S. 47:44.2). Excludes federal/state public pensions and up to $6,000 for age 65+. | 4.25% | |
Maine(ME) | 100% Tax-Free | 100% exempt from Maine individual income tax. Provides up to $35,000 pension income deduction per person. | 7.15% | |
Maryland(MD) | 100% Tax-Free | 100% exempt from Maryland state and county income taxes. Provides additional state pension subtraction up to statutory caps. | 5.75% | |
Massachusetts(MA) | 100% Tax-Free | 100% exempt from Massachusetts personal income tax (M.G.L. c. 62 § 2). Flat 5.0% tax on other taxable income + 4% surtax above $1M. | 5.00% | |
Michigan(MI) | 100% Tax-Free | 100% exempt from Michigan state income tax (MCL 206.30). Phase-in retirement tax relief restoring traditional pension deductions. | 4.25% | |
Minnesota(MN) | Partial Rules | Simplified subtraction allows full exemption if AGI ≤ $82,190 (Single) or ≤ $105,380 (Married). 10% phaseout per $4,000 excess AGI above threshold. Top state bracket is 9.85% for high-income earners. | 9.85% | |
Mississippi(MS) | 100% Tax-Free | 100% exempt from Mississippi state income tax (all retirement income exempt). Mississippi exempts all qualified retirement plan distributions. | 4.00% | |
Missouri(MO) | 100% Tax-Free | 100% exempt (Missouri Senate Bill 190 eliminated all state tax on Social Security). Prior income thresholds repealed for 100% tax-free treatment. | 4.80% | |
Montana(MT) | Partial Rules | Conforms to federal taxable calculation with Montana standard deduction and rate schedule. State top marginal rate is 5.90%. | 5.90% | |
Nebraska(NE) | 100% Tax-Free | 100% exempt (Nebraska LB 873 accelerated full phaseout of Social Security tax). State income tax on Social Security is permanently zero. | 5.84% | |
Nevada(NV) | 0% No Income Tax | No state individual income tax under Nevada Constitution. No state tax on pensions, 401ks, IRAs, or Social Security. | 0.00% | |
New Hampshire(NH) | 0% No Income Tax | No state tax on earned income or Social Security (Interest & Dividends tax fully phased out). No general sales tax either. | 0.00% | |
New Jersey(NJ) | 100% Tax-Free | 100% exempt from New Jersey gross income tax (N.J.S.A. 54A:6-14). Also provides up to $100,000 retirement income exclusion if income ≤ $100k. | 10.75% | |
New Mexico(NM) | Partial Rules | 100% exempt if Federal AGI ≤ $100,000 (Single) or ≤ $150,000 (Married Filing Jointly). If above threshold, federal taxable portion is taxed. Cliff threshold enacted under NMSA § 7-2-5.13. | 5.90% | |
New York(NY) | 100% Tax-Free | 100% exempt from New York state and NYC income taxes (NY Tax Law § 612(c)(4)). Plus up to $20,000 exclusion on other private pension/annuity income (age 59½+). | 10.90% | |
North Carolina(NC) | 100% Tax-Free | 100% exempt from North Carolina state income tax (G.S. 105-153.5(b)(3)). Flat individual income tax rate on other income. | 4.25% | |
North Dakota(ND) | 100% Tax-Free | 100% exempt (North Dakota repealed Social Security tax for most taxpayers). Excludes 100% of taxable Social Security from state taxable income. | 2.50% | |
Ohio(OH) | 100% Tax-Free | 100% exempt from Ohio individual income tax (Ohio Rev. Code § 5747.01(A)(4)). Plus offers senior retirement tax credit on state returns. | 3.50% | |
Oklahoma(OK) | 100% Tax-Free | 100% exempt from Oklahoma state income tax (68 O.S. § 2358(E)). Excludes up to $10,000 in qualifying other retirement income. | 4.75% | |
Oregon(OR) | 100% Tax-Free | 100% exempt from Oregon state income tax (ORS 316.054). No state sales tax in Oregon. | 9.90% | |
Pennsylvania(PA) | 100% Tax-Free | 100% exempt from Pennsylvania income tax (72 P.S. § 7303). All pensions & 401ks after retirement age also 100% exempt. Among the most generous tax shelters for retirees in the nation. | 3.07% | |
Rhode Island(RI) | Partial Rules | Exempt if reached Full Retirement Age (FRA, 66-67) AND Federal AGI < $101,000 (Single) or < $126,250 (Married). Taxpayers under FRA or over income limit pay state tax rate (3.75% to 5.99%). | 5.99% | |
South Carolina(SC) | 100% Tax-Free | 100% exempt from South Carolina state income tax (S.C. Code § 12-6-1120). Provides up to $15,000 deduction on other retirement income for age 65+. | 6.40% | |
South Dakota(SD) | 0% No Income Tax | No state individual income tax. Zero state taxes on retirement, pensions, or investments. | 0.00% | |
Tennessee(TN) | 0% No Income Tax | No state personal income tax under Tennessee state constitution. Hall Income Tax was fully phased out to 0%. | 0.00% | |
Texas(TX) | 0% No Income Tax | No state personal income tax under Article VIII, Section 24-a of the Texas Constitution. Retirees pay zero state tax on Social Security, pensions, or IRA withdrawals. | 0.00% | |
Utah(UT) | Partial Rules | Offers a nonrefundable retirement tax credit of up to $450/person. Phases out by $0.025 per dollar of MAGI > $45k (Single) or > $75k (Married). Flat 4.55% income tax rate applies to state taxable income. | 4.55% | |
Vermont(VT) | Partial Rules | 100% exempt if Federal AGI ≤ $55,000 (Single) or ≤ $70,000 (Married). Proportional phaseout between $55k-$65k (Single) and $70k-$80k (Married). Top marginal state rate is 8.75%. | 8.75% | |
Virginia(VA) | 100% Tax-Free | 100% exempt from Virginia individual income tax (Va. Code § 58.1-322.02). Allows age deduction up to $12,000 for age 65+ subject to income limits. | 5.75% | |
Washington(WA) | 0% No Income Tax | No personal individual income tax on Social Security or retirement pensions. Has a 7% state tax on high-value capital gains above $250,000. | 0.00% | |
West Virginia(WV) | 100% Tax-Free | 100% exempt (House Bill 4880 fully completed the 100% phaseout of Social Security tax). Completed 3-year phaseout (35% in 2024, 65% in 2025, 100% in 2026). | 5.12% | |
Wisconsin(WI) | 100% Tax-Free | 100% exempt from Wisconsin individual income tax (Wis. Stat. § 71.05(6)(b)54). Allows up to $5,000 retirement exclusion for qualified seniors. | 7.65% | |
Wyoming(WY) | 0% No Income Tax | No state individual income tax. Zero state taxes on any retirement benefits. | 0.00% |
3 Key State Tax Planning Rules for Retirees
1. State Exemption Cliffs vs. Graduated Phaseouts
States like New Mexico ($100k Single / $150k Married) use all-or-nothing cliffs where earning $1 over the threshold subjects the entire federal taxable benefit to state taxes, while Minnesota and Vermont phase out subtractions proportionally.
2. Age & FRA Preconditions (CO & RI)
Rhode Island strictly restricts its full Social Security tax exemption to beneficiaries who have reached Full Retirement Age (66–67). Claiming early at 62–65 forfeits the exemption even if your income is below the threshold.
3. Holistic Retirement Tax Burden (Beyond Social Security)
While 41 states exempt Social Security, evaluate how states treat pensions, 401(k) / IRA distributions, property taxes, and sales taxes. States like Pennsylvania and Illinois exempt 100% of qualified retirement accounts in addition to Social Security.
Explore the Complete 7-Module Retirement Innovation Series
Navigate the entire statutory calculator suite for complete financial precision.
Official Primary Data Sources
Verified against federal statutes, agency publication manuals, and Federal Reserve rules.
Official annual disbursement schedule detailing 2nd, 3rd, and 4th Wednesday delivery dates.
Federal statutory regulation governing staggered Wednesday payments based on beneficiary birth dates.
Standard banking holidays (Title 5 U.S.C. 6103) governing prior-business-day deposit shifts.
Consumer Price Index for Urban Wage Earners used for statutory COLA calculations under 42 U.S.C. § 415.