{"id":151,"date":"2025-01-08T08:50:37","date_gmt":"2025-01-08T13:50:37","guid":{"rendered":"https:\/\/www.ecoportal.net\/en\/?p=151"},"modified":"2026-06-30T08:12:55","modified_gmt":"2026-06-30T12:12:55","slug":"social-security-2025-states-exemptions","status":"publish","type":"post","link":"https:\/\/www.ecoportal.net\/en\/social-security-2025-states-exemptions\/151\/","title":{"rendered":"9 states will still tax Social Security benefits in 2025 and what each one means for retirees"},"content":{"rendered":"

As it will be in 2025, residents receiving Social Security benefits in certain states<\/strong> will be confronted by a shock \u2013 their benefits are subject to state taxation. Although most states do not impose taxes on SS benefits, nine states will still impose such taxes<\/a>. Here below is a breakdown of the states that we are focused on and what they imply for their inhabitants.<\/p>\n

Nine states will be imposing taxes to be paid on Social Security benefits in 2025.<\/h2>\n

Colorado<\/h3>\n

In Colorado, Social Security benefits will be taxed in the fiscal year 2025. However, people below age 65 are allowed to continue paying the old rates provided they are within the following limit: AGI $75,000 for individuals and AGI $95,000 for couples filing jointly.<\/strong> These residents can claim all federally taxed benefits on their state income tax return in full. This exclusion is intended to help lower-income workers, but not higher-income workers who owe state taxes on their Social Security benefits.<\/p>\n

Connecticut<\/h3>\n

Connecticut also taxes Social Security benefits<\/a> but allows for exclusions for single individuals with or without dependents (less than $75,000 of AGI), and married people (less than $100,000 of combined AGI).<\/strong> These thresholds to some extent shield low and middle-income retirees from further taxation.<\/p>\n

The state policy makes it possible for a large number of Social Security beneficiaries to easily set aside state taxes with simple exemptions thus helping the needy persons.<\/p>\n

Minnesota<\/h3>\n

In Minnesota, married filers with an AGI of $105,380 or less, and single filers with an AGI of $82,190 or less, will not have to pay state taxes on Social Security benefits<\/strong>. This exclusion is meant to benefit middle-income retirees to enable them to retain more benefits.<\/p>\n

The approach to balance Minnesota’s state revenue needs with the welfare of retirees is effective in mainly shielding retirees with moderate incomes from high taxation. Perhaps you are in Montana or New Mexico? This is a breakdown of what tax laws look like for them.<\/p>\n

Montana<\/h3>\n

Montana provides an exemption for all resident’s Social Security benefits if their federal adjusted gross income is below $25,000 for single taxpayers and $32,000 for married taxpayers filing jointly<\/strong>. According to this policy, the government will seek to spare those retirees on lower incomes from further taxes and allow them to retain more of their benefits.<\/p>\n

The above policy thrust offers some significant gains in easing the monetary burden on retirees especially those with little earnings.<\/h2>\n

New Mexico<\/h3>\n

New Mexico allows recipients with income of less than $100,000<\/strong> individually and married couples with total income less than $150,000 to claim no taxation on their Social Security benefits. This exemption should, in a way, protect as many retirees as possible from extra taxes that would otherwise reduce their benefits considerably.<\/p>\n

New Mexico’s policy is relatively favorable for the middle-income retired populace, which strengthens New Mexico’s attractiveness to retirees with limited incomes.<\/p>\n

Rhode Island<\/h3>\n

There are a couple of Rhode Island taxation regulations for Social Security income. State taxes do not apply to any Social Security benefits received by individuals filing for any of the following: single people with an AGI lower than $88,950 and married people with an AGI lower than $111,200.<\/strong> This policy is intended to work for middle-income retirees so that they are not taxed more than what they benefit from their pension or retirement accounts. The state’s approach helps save money for those who are retired to get them more relieved in terms of their income, especially acknowledging the fact that most of the retirees are middle-income earners.<\/p>\n

Utah<\/h3>\n

Utah allows Social Security income earned by state taxpayers to be free of state taxes if the single filer earns below $30,000 annually, or if the married couple earns below $50,000.<\/strong> This exclusion helps to protect retirees with lower incomes from having a larger proportion of their benefits taxed. Thus, the policy of Utah is to decrease tax stress for lower earners and let retirees be provided for financially. In this post, we review Vermont and West Virginia’s strategy of taxing Social Security.<\/p>\n

Vermont<\/h3>\n

Vermont does not impose taxation of Social Security benefits if the married couple’s adjusted gross income is less than $65,000 and the income of the single filer is below $50,000<\/strong>. This policy also discourages extra tax burden on lower and middle retirees’ incomes to enable them to retain more of their benefits. The state’s measures also help to reduce such difficulties for retirees and to better cope with the limited earning capabilities of people of retirement age.<\/p>\n

West Virginia<\/h3>\n

Gradually, state taxation of the Social Security benefits is being scrapped in West Virginia. In the 2024 tax year, only 35% of Social Security benefits will be subject to state tax.<\/strong> In 2025, this taxable portion rises to 65%, before in 2026, Social Security benefits will not be taxed at all. Especially in the case of retirement, the gradual phasing out works to eventually remove taxation and provide sustained, full, and total fiscal help for retirees.<\/p>\n

What does this all mean for Social Security recipients in the year 2025?<\/h2>\n

Looking ahead to 2025, Social Security beneficiaries will remain subject to state taxation in nine states. However, most of these states offer exclusions and deductions to shield low to middle-income retirees.<\/p>\n

Citizens ought to have general knowledge of certain tax regulations<\/a> to enhance their gains and avoid the pressure of taxes.<\/p>\n","protected":false},"excerpt":{"rendered":"

As it will be in 2025, residents receiving Social Security benefits in certain states will be confronted by a shock \u2013 their benefits are subject to state taxation. Although most states do not impose taxes on SS benefits, nine states will still impose such taxes. Here below is a breakdown of the states that we … Read more<\/a><\/p>\n","protected":false},"author":3,"featured_media":9600,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_focus_keyword":"Social Security,tax exemptions,etirement benefits taxed","rank_math_title":"","rank_math_description":" Discover which nine states will tax Social Security benefits in 2025 and learn about the exemptions designed to ease the burden for retirees.","footnotes":""},"categories":[2],"tags":[],"class_list":["post-151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"_links":{"self":[{"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/posts\/151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/comments?post=151"}],"version-history":[{"count":0,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/posts\/151\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/media\/9600"}],"wp:attachment":[{"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/media?parent=151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/categories?post=151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ecoportal.net\/en\/wp-json\/wp\/v2\/tags?post=151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}