![]() Indeed, up to 85% of your benefits may be taxed. Whether your state does or doesn't tax your Social Security benefits, know that they may still be vulnerable to taxation by the federal government. The exemption is available to single taxpayers with less than $100,000 in income, to married couples filing jointly, surviving spouses, heads of household with under $150,000 in income, and to married couples filing separately with under $75,000 in income. Meanwhile, the state of New Mexico has stopped taxing many residents' Social Security income, with its website announcing:īeginning with tax year 2022, most seniors will be exempt from paying taxes on their Social Security benefits when they file their New Mexico Personal Income Tax returns. NYU provides no-cost access to LinkedIn Learning with thousands of online how-to tutorials taught by real-world professionals covering topics that include. The exemption for Social Security benefits applies only to the extent the benefits are included in your federal adjusted gross income." (You will likely find that information on your state's tax commission's web page or at its department of revenue or taxation.)Īs an example, Kansas says, "If your federal adjusted gross income is $75,000 or less, regardless of your filing status, your Social Security benefits are exempt from Kansas income tax. Some states have a very light touch while others don't. ![]() Or it might heavily tax properties or non-Social-Security income.įor the small picture, if your state does tax Social Security benefits, find out just what the taxation details are. If your state doesn't tax your Social Security income, it might instead be levying a hefty sales tax on everyone. Details matterĭon't get too happy or too sad when you see which list your state is on because you really need to consider the bigger - and smaller - picture.įor the big picture, understand that each state needs to generate revenue to keep it running. These 38 states don't tax your Social Security benefitsīy now, you can probably guess which states don't tax Social Security benefits.
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