Tax-Free Social Security: Here Are the States That Let You Keep More in 2025

In 2025, 41 states and Washington, D.C. won’t tax Social Security benefits, helping retirees keep more of their income. This growing trend offers big relief for seniors nationwide.

Tax-Free Social Security: In 2025, a total of U.S. states 41 in total, plus Washington, D.C. will not take state income taxes from Social Security checks. That’s great news for retirees. It means they can keep more of their monthly income, which really helps when every dollar matters.

This is not just a random move. Over the past few years, more states have decided to give seniors a break. It’s a clear sign that many places want to help people who worked all their lives and are now living on a fixed income. These states have changed their tax laws so retirees don’t lose part of their Social Security money to state taxes.

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Tax-Free Social Security: States that do not tax Social Security benefits

The following states currently do not taxSocial Security benefits:

Alabama
Alaska
Arizona
Arkansas
California
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachusetts
Michigan
Mississippi
Missouri
Nebraska
Nevada
New Hampshire
New Jersey
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
South Carolina
South Dakota
Tennessee
Texas
Virginia
Washington
Wisconsin
Wyoming
Washington, D.C.

These states have implemented policies that excludeSocial Security benefits from state income taxation, providing significant financial relief to retirees

Tax policies

Even if a state doesn’t tax Social Security, it might still tax other income like 401(k)s or pensions. That’s why retirement planning isn’t just about warm weather or nice views it’s also about taxes.

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Take Delaware for example. It’s often called one of the best states for retirees. There’s no sales tax. No estate tax. No inheritance tax. And property taxes are low. So retirees there can stretch their money further.

Some states still tax Social Security but not for everyone. In Minnesota, if your only income is Social Security, you don’t have to pay state tax on it. In Colorado, since 2022, people aged 65 or older could fully deduct their federally taxed Social Security on state returns. And starting in 2025, people as young as 55 can do the same if they earn under $75,000 (single) or $95,000 (married filing jointly).

So yes basically many states are now friendlier to retirees. But that doesn’t mean people can skip the homework. It’s smart to look at the whole tax picture before packing up and moving. Not just income tax, but also sales tax, property tax, and even cost of living.

Farheen Ashraf

Farheen Ashraf is a History graduate. She writes on a variety of topics, including business, entertainment, laws, poetry, stories, travel, and more. Her passion for writing has led her to explore a variety of genres.