States That Tax Social Security in 2026: the 8 That Still Do
Editorial Staff · September 18, 2026
Make this a wish: Where Might I Live highlights US counties where you might find it, in search of YOUR happy place. Combine wishes for healthcare, prices, and more.
No state tax on Social Security, and a low property tax bill. The money you worked for, staying where you put it. Local officials who ask very little of you inside your own home.
8 states still tax the benefit in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Everywhere else it goes untaxed, and in 400 counties both bills stay low at once.3
| Wishes | Matching counties | Across the country in general |
|---|---|---|
| No state tax on the benefit | 2,8473 | 43 of the 50 states and the district do not tax the benefit |
| Lowest property tax | 4863 | the typical state charges about 0.70% of home value a year2 |
We read the Social Security rule from each state's own revenue department, and we take the property tax rate from the Census Bureau for the county, because a legislature sets the first once for the whole state and local officials set the second one county at a time. The rate here is the county average: your own bill turns on the assessment and the exemptions you qualify for.3
What stands out
- Each of the 8 states that still tax the benefit exempts some people depending on their income, at set income limits.1
- 87 counties charge over 2.0% of home value a year in property tax, at least four times what the cheapest counties charge.2
- Only 400 of 3,143 US counties are both in a state with no tax on the benefit and among the lowest for property tax.3
- Counties low on both bills are in 27 different states.3
Which states do not tax Social Security in 2026?
43 of the 50 states and the district. A retiree can settle almost anywhere and owe no state tax on the benefit, because only 8 states still charge it.1
Two houses, same price, same state. On one, the county asks under 0.5% of the home's value a year. On the other, the county asks four times that, every year anyone lives there.2
In 400 counties across 27 states both bills stay low at once.3
States that tax Social Security benefits
Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. Every one of those 8 states exempts some people depending on their income, so a retiree in any of them may owe nothing at all. Each legislature sets its own income limit and moves it from year to year, so go by the figure on this year's form.1
Even in states with no income tax, the property tax bill arrives either way.1
Is a no tax state actually cheaper to retire in?
Not by itself. A homeowner pays property tax every year for as long as they own the house, and local officials set the rate. 486 counties average under 0.5% of home value a year; 87 counties average over 2.0%.2
On the same house, a retiree in the highest taxing counties pays at least four times what a retiree in the cheapest ones pays, every year for as long as they live there. In the cheapest counties that bill stays small enough to stop thinking about.2
Plenty more places have no Social Security tax. Start there and narrow as you go.
Sources and review
- State revenue departments and statutes, tax year 2026.
- US Census Bureau, American Community Survey, ACS 2020-2024 5-year estimates. Fact sheet (PDF).
- Where Might I Live county figures: the state rule applied to every county in the state, property tax rates measured in the county. Methodology
- Written
- 2026-09-18
- Reviewed by
- Editorial Staff, 2026-09-27
- Published
- 2026-10-04