13 U.S. States That Tax Your Social Security Benefits (Here’s How)

Yes, your Social Security benefits are taxable (at least in these 13 states). However, remember that not all of these 13 states tax your Social Security benefits in exactly the same way and even if you do live in one of these states, taxes on Social Security shouldn’t be the only factor in deciding where you want to spend your golden years.

Read on to discover the states that tax your Social Security benefits.

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1. Colorado

State Taxes on Social Security: Up to $20,000 of Social Security benefits can be excluded, along with other retirement income, but only for people who are younger than 65. Those who are older can exclude Social Security benefits and other retirement income up to $24,000. Also, Social Security income not taxed by the federal government is not added back to adjusted gross income for state income tax purposes.

Sales Tax: 2.9% state levy. Localities can add as much as 8.30%, and the average combined rate is 7.52%, according to the Tax Foundation.

Income Tax Range: All Colorado residents who have federal taxable income pay a flat rate of 4.63%. Taxpayers are also subject to a state alternative minimum tax.

Property Taxes: The median property tax on Colorado’s median home value of $264,600 is $1,516.

Inheritance and Estate Taxes: There is no inheritance tax or estate tax.

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8 thoughts on “13 U.S. States That Tax Your Social Security Benefits (Here’s How)”

  1. MARGARET SESSIONS

    Thanks for this information. Social Security recipients do not get a lot to live on and it is, after all, a tax so if the IRS taxes the social security they are double taxing someone.

    1. I don’t consider SS a tax. I look at it as a retirement plan that we have been contributing to since we went to work. They tax your other retirement plans so they tax this one also. Don’t think this is fair but we have little say on the matter.

      1. The only problem with the premise that you paid into a retirement plan is you have already paid federal tax on the monies that they withhold for S.S. so therefore, it is a double tax on something that you have already paid tax on…..

  2. Harry Weingartner

    In addition to the great weather, this is just one reason that my wife and I have become Florida residents. Also, Florida does not have an income tax.
    Harry

  3. ANGELA STOUMEN

    Thank you. There is very little information, and I do not believe many people know the laws and their repercussions. I live at Juniper Village 3200 Bensalem Blvd. Bensalem, Pa. and anything I have done long past I am being harassed & likely will suffer much worse. I am even electronically suffering each night. Forbes once said that by afternoon many Americans have committed felonies, unthinkingly. Now things are becoming more strident – that the bank can rake money, deportation, institutionalize, or cut limbs! I believe that all the presidential candidates should demand education on the Laws of this country! in every state from elementary to senior. If you’ll notice such knowledge is held very secretively! Geraldine Werner & Mr. Stahl live here & I have fear they will take me away & institutionalize me. I haven’t been allowed to see my sister DOLORES WESSEL for over 70 years! Please keep me on your radar. I feel friendless!

    1. Betty Blakley

      Dear Madam, NEVER, EVER Give out your address on any social media! You simply must not for your protection! Too risky in this world today! Just looking out for your well being. Never fall prey to scammers! Do not ever give or send money to anyone you do not personally know! The IRS, Social Security, Microsoft orca Apple will NEVER call you! Never give out any banking info. Please be safe!

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