Where Social Security Is Tax-Free: 42 States in 2026
If you're retired or getting close, here's some genuinely good news in an era that doesn't always deliver it. As of 2026, there are now 42 states that won’t tax you this portion of your fixed income.
"The list of states that do not tax Social Security is much longer than those that do," said Brian Kuhn, CFP, CLU, SVP and financial advisor at Wealth Enhancement Group. "And each state makes its own rules."
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At the federal level, up to 85% of your Social Security benefits can be included in taxable income depending on your combined income, so avoiding state taxes on top of that can mean hundreds or even thousands of dollars back in your pocket every year. Whether you're already settled somewhere or considering a move, knowing which states are on your side financially is one of the most practical retirement planning moves you can make.
Here's the full list of the 42 states that won't tax your Social Security benefits in 2026 and what you should know about the ones that still do.
Most States Won't Tax Social Security in 2026
West Virginia completed its phase-out of Social Security taxation in 2026, meaning benefits are now 100% state-tax-exempt there, joining a growing group of states that have quietly made retirement a lot more affordable in recent years. Kansas, Missouri and Nebraska also eliminated their state taxes on Social Security benefits starting in 2024, bringing the total number of states that give retirees a full pass on Social Security income to 42 (plus Washington, D.C.).
These states are:
Alabama
Alaska
Arizona
Arkansas
California
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Nebraska
Nevada
New Hampshire
New Jersey
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
South Carolina
South Dakota
Tennessee
Texas
Virginia
Washington
West Virginia
Wisconsin
Washington, D.C.
Wyoming
Only 8 States Will Tax Social Security in 2026
Social Security plays a big role in many Americans' retirement security. In fact, around 39% of Americans ages 65 and older rely on Social Security for at least half their income, according to the AARP. That’s why living in once of these eight states may take a bigger bite out of your fixed income:
Colorado
Connecticut
Minnesota
Montana
New Mexico
Rhode Island
Utah
Vermont
"Each state has tax provisions that could provide deductions for individuals below certain thresholds or ages, making each state unique," Kuhn said.
Final Take: How Much Do Retirees Save on Social Security Taxes in States That Don’t Tax It?
Kuhn pointed out you can calculate how much you're saving on taxes -- assuming you live in a state that does not tax Social Security benefits -- by looking up the effective rate of tax you paid to your state for all taxed income sources and applying that to your total Social Security benefits.
"So, for example, if your effective rate in your state was 5%, and you received $30,000 in Social Security benefits, that would be a savings of $1,500," Kuhn said.
That’s why it's important to look at the specific rules of your state and at your own tax situation. Still, from a big-picture perspective, the amount saved among retirees whose benefits aren't taxed is quite impressive.
Nicoloe Spector and Jake Safane contributed to the reporting for this article.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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