Social Security: State Tax Exemption

Along with federal income tax, you are required to pay taxes on most income you earn as a resident of your home state. This income tax is assessed under specific regulations, and each state has different rules about what qualifies as taxable income.

In twenty-seven of the fifty states and the District of Columbia, benefits are exempt from . If you are a retiree in one of the following states, you won’t have to pay state taxes on your Social Security benefits:

  • Alabama
  • Arizona
  • Arkansas
  • California
  • Delaware
  • Georgia
  • Hawaii
  • Idaho
  • Illinois
  • Indiana
  • Iowa
  • Kentucky
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Mississippi