Which States Tax Social Security Benefits in 2025?

social security benefits
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West Virginia

This is one of the states that is slowly but surely phasing out its state taxes on Social Security benefits, which makes it one of the states that will implement full exemption in the near future.

In 2024, West Virginia permits retirees to deduct 35% of their Social Security payments from their adjusted gross income (AGI). In 2025, this deduction will be increased to 65%, considerably lowering the taxable amount of Social Security income. By 2026, seniors will be allowed to deduct 100% of their Social Security income from their AGI, thus exempting them from state taxes.

This is a good approach that gradually lifts the financial burden retirees have to face. The goal is to eventually eliminate state taxes on Social Security benefits altogether, and as you can see, this will happen in the near future.

Want to learn more about Social Security? Try this book: Social Security For Dummies

You should also read: 8 Flexible Jobs for Seniors Looking to Stay Active

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