New Mexico
One amazing thing is that New Mexico updated its tax policy on Social Security benefits, and now even if they tax them, it is more favorable for retirees. New legislation has introduced higher income thresholds, exempting many retirees from paying state taxes on their benefits.
If you are one of the single filers, Social Security benefits are fully exempt from state taxation if your annual income is $100,000 or less. If you are married and you are filing jointly with your spouse, Social Security benefits are not taxed for couples earning up to $150,000 annually.
These thresholds are an amazing solution, but higher earners will still need to pay taxes on a part of their benefits.
1 thought on “Which States Tax Social Security Benefits in 2025?”
All states should drop SS taxes as we paid those taxes including Federal taxes. SS should not be taxed period.