What states do not tax Social Security income?

States that don't tax any retirement benefits Alaska. Florida. Nevada. New Hampshire. South Dakota. Tennessee. Texas. Washington. More items... •

fool.com - 39 States That Don't Tax Social Security Benefits | The Motley Fool

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Take-home pay. Everyone who's worked for a living knows that this is the amount that matters the most. And it still matters even when you're retired. Retirees who receive Social Security benefits can have their take-home pay reduced by income taxes just like when they were working full-time. However, you can get at least a partial reprieve depending on where you live.

States that don't tax Social Security benefits

Currently, Social Security benefits aren't taxable in 38 states. One more will be added to the list in 2023, though. In the past, Colorado allowed $24,000 of Social Security income to be deducted from state taxes. Starting next year, no Social Security benefits will be taxed in the Rocky Mountain state. Here's the full list of the 39 states where Social Security benefits won't be taxed in the new year:

Alabama

Alaska

Arizona

Arkansas

California

Colorado

Delaware

Florida

Georgia

Hawaii

Idaho

Illinois

Indiana

Iowa

Kentucky

Louisiana

Maine

Maryland

Massachusetts

Michigan

Mississippi

Nevada

New Hampshire

New Jersey

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

South Carolina

South Dakota

Tennessee

Texas

Virginia

Washington

Wisconsin

Wyoming

There's also one other place in the U.S. you can live where your Social Security benefits won't be taxed. It's not a state at this point, but the District of Columbia exempts Social Security benefits from any income taxes.

States that do tax Social Security benefits

So which states do tax Social Security benefits? There are currently 12 states where you could lose some of your benefits to taxes. As mentioned previously, though, Colorado won't be on the list beginning in 2023. Here are the 11 remaining states where you could have to pay taxes on your Social Security benefits:

Connecticut

Kansas

Minnesota

Missouri

Montana

Nebraska

New Mexico

Rhode Island

Utah

Vermont

West Virginia

Even in these states, though, it's possible that you won't have to pay state taxes on all of your Social Security benefits. Most of them only tax benefits above a specified income level.

States that don't tax any retirement benefits

Some states not only don't tax Social Security benefits, they don't tax any retirement benefits. Nine states don't have an income tax:

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Washington

Wyoming

In addition, three states have income taxes but exempt retirement income -- including Social Security as well as distributions from IRAs, 401(k) plans, and pension plans:

Illinois

Mississippi

Pennsylvania

Don't forget other taxes, though

Regardless of where you live, your Social Security benefits could be subject to federal taxes. If you file an individual federal tax return and your combined income tops $25,000, you'll have to pay federal taxes on up to 85% of your Social Security benefits. The same is true if you file a joint return and your combined income is more than $32,000. Combined income, by the way, includes half of your Social Security benefits, your adjusted gross income, and any tax-exempt interest income. It's also important to remember that you could have to fork over money to states even if they don't tax your Social Security benefits. For example, some states have high property taxes. Still, where you live definitely matters in how much take-home pay you will receive with Social Security.

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Are seniors getting a stimulus check?

More than 15 million senior citizens will be eligible for these new stimulus checks.

marca.com - Stimulus Payments: Are the senior citizens getting a fourth check?

The Covid-19 pandemic changed how people lived in a radical manner over the last few years. Financial issues and the economy caused major damage in every sector and it deeply affected American families. That is one of the main reasons that federal and state legislators are pushing for these direct payments to go through as quickly as possible in order to help these families navigate their economic issues. Thus far, there have been three rounds that have successfully reached millions of homes in the United States, others haven't received these checks yet. However, they have received cash in some cases. But it appears that these checks haven't been enough due to the inflation and high prices on everything. This combination of factors have made people's bank accounts getting reduced. Soaring prices have shot up more than 9% in comparison to last year at around the same time. Primordial needs articles such as gas and other kitchen equipment have also increased in price.

Stimulus Checks for Senior citizens

The Senior Citizens League have revealed that the net-worth of some people who apply for a Social Security check was reduced by nearly 40%, which is the reason the demand on these payments has increased. The TSCL sent a request last year to Congress in order to apply for more help to the elderly population in the United States. A study of this proposal made the chamber have this as a legislative priority with an increase in stimulus checks for senior citizens. Inside this petition, there is help with checks for people over 60 for up to $1,400. More than 15 million senior citizens will be eligible for these new stimulus checks.

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