12

Most states don’t tax Social Security. However, there are some states where Social Security beneficiaries must pay federal income taxes on their benefits. Here is the list of all the 12 states where the federal government levies some type of tax on Social Security:

• Colorado
• Connecticut
• Kansas
• Minnesota
• Missouri
• Montana
• Nebraska
• New Mexico
• Rhode Island
• Utah
• Vermont
• West Virginia.

For instance, Connecticut levies a 3% to 6,5% tax rate, while in Kansas the tax rate ranges from 3,1% to 5,7%. Still, retirees who report an AGI of less than $75,000 pay no taxes on their Social Security benefits. Most of those 12 states present similar exemptions.