What states tax Social Security?

As of 2025, only nine states tax Social Security benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

What states pay federal taxes on Social Security?

Do states tax Social Security income? Most states do not tax Social Security income. But some portion of your benefits may be subject to state tax if you live in one of these 9 states: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont, or West Virginia.

What are the most tax-friendly states for retirees?

In 2025, the following 9 of the states don't tax retirement income:

• Alaska.
• Florida.
• Nevada.
• New Hampshire.
• South Dakota.
• Tennessee.
• Texas.
• Washington.

Which states have no property tax for seniors?

States that offer property tax exemptions to seniors

• Alabama: Exempts seniors from the state portion of property taxes; county taxes may still apply.
• Alaska: Exempts the first $150,000 of assessed home value for homeowners aged 65-plus.

What state is best for seniors on Social Security?

For retirees living on Social Security, the best states offer low taxes (no state income tax on SS), low cost of living (especially housing), and affordability, with top contenders often including Mississippi, West Virginia, Arkansas, Iowa, Wyoming, and Florida, while states like Pennsylvania, South Dakota, and Tennessee also rank highly for affordability and favorable tax environments, making every dollar stretch further. 

Which States Tax Social Security?

Where is the best place to retire to avoid taxes?

1. Panama: The Gold Standard for Tax-Free Retirement. Panama earns the top spot for a reason: it's the only country in the Americas that offers complete tax exemption on foreign income AND uses the U.S. dollar. No exchange rate stress, no tax worries.

What is the best state to move to avoid taxes?

Last updated: May 2025. As of 2025, nine U.S. states levy no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For high-net-worth individuals, understanding the nuances of these tax structures is crucial for effective financial planning.

At what age do you stop paying property taxes in the USA?

Most states offer special property tax exemptions for homeowners who are at least 65 years old.

Who is eligible for the $6000 senior tax credit?

You must be 65 or older by the end of the tax year to qualify for the new senior tax deduction, include your Social Security number on your tax return, and meet the income limits. You can claim the new $6,000 senior tax deduction if you itemize your tax deductions, or if you choose to take the standard deduction.

Where can I retire on $2000 a month in the United States?

You can retire comfortably on $2,000 a month in the U.S. by focusing on affordable Midwest and Southern cities, with top contenders including Fort Wayne, Indiana, Fargo, North Dakota, Knoxville, Tennessee, Oklahoma City, Cincinnati, Ohio, and several locations in Texas (like Brownsville, Abilene) and Florida (like Tallahassee, Fort Myers), which offer lower costs for housing, groceries, and healthcare while still providing good livability and amenities. 

What is the cheapest and happiest state for retirees?

Cheapest States to Retire In

• Mississippi. Cost of Living: Lowest in the U.S. ...
• Alabama. Cost of Living: Significantly lower than the national average. ...
• Arkansas. Cost of Living: Among the lowest in the nation. ...
• Oklahoma. Cost of Living: Lower healthcare and housing costs. ...
• West Virginia. ...
• Tennessee. ...
• South Carolina. ...
• Kentucky.

How can I reduce taxes on Social Security?

1. Converting savings into a Roth IRA. "One strategy to reduce the taxes you pay on your Social Security income involves converting traditional 401(k) or IRA savings into a Roth IRA," says Bradley Koval, director at Fidelity's Financial Solutions. ...
2. Delaying your Social Security benefit claim.

What is one of the biggest mistakes people make regarding Social Security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

What states are not going to tax Social Security in 2025?

Most States Won't Tax Social Security in 2025

• Alabama.
• Alaska.
• Arizona.
• Arkansas.
• California.
• Delaware.
• Florida.
• Georgia.

At what age do seniors stop paying federal taxes?

Taxes aren't determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2025 have to file a return for that tax year (which is due in 2026) if their gross income is $16,550 or higher.

Which state has no property tax in the USA?

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries. There is a caveat to this though.

Does owning a home impact social security benefits?

We do not count a home regardless of its value. However, see §§ 416.1220 through 416.1224 when there is an income-producing property located on the home property that does not qualify under the home exclusion.

What's the worst state for taxes?

Here are the current states with the highest state taxes, including states with the highest top rates or flat rates:

• California (12.3%, with 1% tax on income in excess of $1 million)
• Hawaii (11%)
• New York (10.9%)
• New Jersey (10.75%)
• District of Columbia (10.75%)
• Oregon (9.9%)
• Minnesota (9.85%)

How much an hour is $70,000 a year after taxes?

Quick Answer: $33.65 Per Hour

A $70,000 annual salary equals $33.65 per hour in California before taxes. After federal and state deductions, your take-home pay ranges from $43,500 to $52,000 annually ($3,625-$4,333 monthly).

What is the cheapest but best state to live in?

The best affordable states to live in consistently include Southern and Midwestern options like Mississippi, Alabama, Arkansas, Ohio, Iowa, Kansas, Missouri, Oklahoma, and West Virginia, known for low housing costs, low taxes (sometimes), and lower overall cost of living indexes compared to the national average, though job opportunities and specific amenities vary, with some states offering strong sectors in manufacturing, healthcare, or logistics. 

Is $5000 a month a good retirement income?

With $5,000 per month in retirement, you can afford to live in many locations, coast to coast and beyond. As long as you pay close attention to your savings and stick to a reasonable budget, you can turn that $5,000 monthly retirement budget into a dream lifestyle for your golden years.

Where is the nicest and cheapest place to retire?

1. Fargo, ND. With its low costs and generous tax situation, North Dakota has consistently ranked high among our best states for retirement.

Which country is 100% tax-free?

Vanuatu. There are no taxes on personal income, inheritance, capital gains, and capital export for individuals. Companies can be exempt from corporate and other taxes for 20 years, only paying a $300 annual fee.