Social Security Tax by State in 2026: Which States Tax Retirement Benefits?
As of 2026, eight U.S. states continue to levy taxes on Social Security retirement benefits, creating a complex financial landscape for retirees. While the Congressional Budget Office estimates that just over half of all beneficiaries will pay federal income tax on their payments, state-level rules vary significantly. Income-based exemptions in these states offer some relief, but the final amount retirees keep depends on a combination of federal thresholds, other retirement withdrawals, and specific state regulations.