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13 States That Tax Social Security Benefits

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Are Social Security benefits taxable? You better believe it. Uncle Sam taxes up to 85% of your benefits, depending on your income, and several states tack on a state tax of their own. Vermont, for one, treats Social Security benefits the same way as the feds. Other states tax Social Security benefits only if income exceeds a state-specified threshold. For example, Connecticut taxes Social Security benefits if your income tops $50,000, or $60,000 if you’re married and file taxes jointly.

A tax on Social Security doesn’t necessarily make a state unsuitable for retirement. North Dakota, one of the 13 states that taxes Social Security, actually ranks as a tax-friendly state for retirees. Weigh all state taxes including other income taxes, sales taxes, property taxes, estate taxes and inheritance taxes, not to mention available tax breaks for seniors, to get a complete retirement tax picture.


Take a look at the 13 states that tax Social Security benefits.

SEE ALSO: 50 Best Places to Retire in the U.S.

Kiplinger's state-by-state guide to taxes on retirees is updated annually based on information from state tax departments, Wolters Kluwer Tax & Accounting and the Tax Foundation. All data are for the 2017 tax year unless otherwise noted.


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