Missouri and Kansas have decided to eliminate taxes on Social Security benefits starting in 2024, with Kansas making the move shortly after. This change means that only nine states will continue to tax these benefits in 2025.
Discover if your present location or ideal retirement destination will impact your Social Security benefits.
Colorado
In 2025, Colorado will keep taxing the benefits received by Social Security recipients. It’s important to highlight that in Colorado, individuals aged 55 to 64 with an adjusted gross income of $75,000 or less, or couples filing jointly with an income of $95,000 or less, can fully deduct the federally taxed benefits when filing their taxes.
Connecticut
Connecticut offers an exemption policy akin to Colorado’s. For single tax filers or married individuals filing separately with an adjusted gross income below $75,000, benefits remain untaxed. Married couples filing jointly with an AGI under $100,000 are in the same situation.
Minnesota
Minnesota provides a tax exemption for Social Security benefits. Couples filing jointly with an AGI below $105,380 or single filers with an AGI under $82,190 are exempt from taxes on Social Security benefits.
Montana
Social Security benefits are fully tax deductible for single filers earning under $25,000 and for joint filers with an AGI below $32,000.
New Mexico
New Mexico has eliminated taxes on Social Security benefits for individuals earning under $100,000 and married couples earning under $150,000.
Rhode Island
In Rhode Island, individuals earning under $88,950 in AGI can avoid state taxes on their benefits, while married couples with AGIs below $111,200 can do the same.
Utah
If you file as a single individual in Utah and earn under $30,000 each year, your Social Security benefits won’t be taxed. In the same way, couples who earn under $50,000 are also exempt.
Vermont
In Vermont, couples earning under $65,000 are not taxed on their Social Security benefits, and individuals with incomes below $50,000 also enjoy this exemption.
West Virginia
West Virginia is set to eliminate its state income tax on Social Security benefits over the next three years due to a recently enacted law. In the meantime, individuals earning under $50,000 per year and joint filers with an income below $100,000 are currently exempt from this tax. The reduction begins with the taxes for 2024, seeing a decrease of 35%. By 2025, the decrease will reach 65%, and starting in 2026, there will be no taxes on Social Security.
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