9 States That Still Tax Social Security – and One Dropping the Tax in 2026

3 Actionable Tips to Lower Your Taxable Income

If you live in one of the nine states listed above and find yourself near the income “cliffs,” a little planning can save you thousands.

1. Manage Your RMDs: Required Minimum Distributions (RMDs) from traditional IRAs often push retirees over income thresholds. If you are charitable, consider a Qualified Charitable Distribution (QCD). This satisfies your RMD without counting toward your AGI, potentially keeping you eligible for state tax exemptions.
2. Roth Conversions: Converting traditional IRA money to a Roth IRA (ideally before you start Social Security or in low-income years) creates tax-free income later. Roth withdrawals generally do not count toward the “Combined Income” formula.
3. Check State-Specific Deductions: States like Colorado and New Mexico often have additional senior deductions for medical expenses or general retirement income that can lower your AGI enough to qualify for the Social Security exemption.