10. Rhode Island
State Taxes on Social Security: This state doesn’t tax Social Security benefits for single filers with up to $83,550 in adjusted gross income and joint filers with up to $104,450 in AGI. Those are the 2018 limits; they’re adjusted each year for inflation.
Sales Tax: 7% state levy. No local taxes. Clothing and footwear with an item price of $250 or less are exempt.
Income Tax Range: Low: 3.75% (on up to $62,500 of taxable income); High: 5.99% (on taxable income over $149,150).
Property Taxes: The median property tax on Rhode Island’s median home value of $238,200 is $3,929.
Inheritance and Estate Taxes: Rhode Island has an estate tax with an exclusion level that’s indexed to inflation (the 2019 threshold was $1,561,719). Rates range from 0.8% to 16%. There is no inheritance tax.
Your benefits might feel a bit of a sting with this next state…..
62 thoughts on “13 U.S. States That Tax Your Social Security Benefits (Here’s How)”
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.
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.
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…..
Mary, I see you get the game they’re playing with “our” money. And you also notice that we also paid a Medicare Tax while working and they tax us on that, too. Then they have the nerve to tell Seniors that the Government will run out of Social Security by 2000-whwnever.
But in the meantime they want to offer Medicare to illegal immigrants, along with free education, etc.. And where are they getting the money? Yes, they are pilfering our Social Security and Medicare money which we paid into and are entitled to, not them.
True, except for the fact that you most likely receive far more in SS payments than you ever paid into the system in taxes. The difference between those two numbers is income that has not been taxed. With my pension, they pro-rate the amount I paid in over a 20 year period and I don’t have to pay tax on that 1/20th of my contribution each year. But the rest of the pension is taxable income.
You are not “double taxed” on your social security bebefits. Both employers and employees contribute to social security for an employee. Employers gets to deduct their contribution from their taxes (pre-tax). Employees pay taxes on their contribution (post tax). Only the pre-tax portion of the contribution is subject to tax when you receive benefits. You are not being taxed for something you already paid taxes on. You are being taxed for your employer’s contruibution which you did not ever pay taxes on.
You pay federal and state income tax on it when it’s taken from you the first time. Then you’re taxed on it again when you receive it back.
The article is not saying SS IS a tax. The point is that once you start receiving your benefit, THAT income is taxed.
I don’t think you understand. They are taxing your benefits…that you have already paid taxes on when you paid into it. 401k contributions are funded with pre-tax dollars, so that’s why you pay taxes on tge proceeds on the back end. The exception is a Roth IRA, which is funded with after tax dollars, but the gains on those investments are tax free if you leave them alone until you are 59.5 years old or longer.
I agree with you. The money we had put in was already taxed.
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
Zero tax is good ? Zero Federal tax also ? Good !
Zero property Tax ?
Zero Sales Tax ?
Zero Tax equals = No Roads, no Military, no Schools, No police and no government. Only strong men they would rule and take what they wanted from the weak. I don’t mind paying my fair share for a strong but regulated government.
Your right Howard everyone dislikes taxes even myself as a retired person but we need all what you mentioned
Government should be a part time job and not a career. Furthermore, let government employees pay their own retirement like everyone else. Tax payers don’t want someone retiring after just 20 years of work with 90% of their highest income as their retirement… plus better health insurance than everyone else. Pay your own like everyone else.
We already get taxed regarding SS. The Docs is the tax that comes out of your pay for SS. SS being taxed after we get that benefit, is double taxation, which is against the Constitution.
I get your point but the fact of the matter is you have always paid taxes on it. It’s BS that the government continues to tax the elderly who have already paid those taxes in advance. CPA’s say people are naïve because they don’t understand how it works and how much the government taxes taxes already been paid. The elderly should be taken care of in this country that’s who built this country no matter! It’s a crying shame!
Thanks. Many people forget this. Tax action isn’t the problem. It’s UNFAIR taxation.
How about all the money the gov’t wastes and loses through fraud?
How about Joe Biden pay his Fair Share?
When’s the last time that you saw a strong regulated government Harry?
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!
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!
Thanks, Betty for giving that lady good advice.
Take your address off your post. NEVER EVER put it on Social Media for everyone to see. Have a beautiful day.
And why is that? You can go where ever you want. Feel other wise get yourself a good attorney. So he can represent you if things go to the point you speak of. If you are of sound mind and body no one can keep you down.
You say 70 years. Make me not believe what you are saying.
And why is that? You can go where ever you want. Feel other wise get yourself a good attorney. So he can represent you if things go to the point you speak of. If you are of sound mind and body no one can keep you down.
You say 70 years. Make me not believe what you are saying. Don’t give out your address! Don’t believe people who call and want you to pay something. Or threaten you that you will be arrested. I personally have had that done on more than one occasion. I told them to call the authorities right away, that I’m waiting on the porch for them. Hahaha you just wouldn’t belive the people out there are scamming people. I Have to call and cancel my credit cards 2 – 3 times a year. For fraudulent charges I’m not responsible for charges. And I’m issued a new card and new number.
.be safe
I got money taken out of my return in Mass. at H&R Block and I am on SSDI for the year 2019.
Are you sure that wasn’t just for the tax preparation fee?
Don’t use H&R Block
I glad this is going to work out for everyone in fair taxes we need it yay
I respectfully ask virtually in this or any other financial based taxing authority to OBJECTIVELY not SUBJECTIVELY to define the specific tax rate NUMBER that represents “The Fair Absolute Number” all just a subjective word mass of ones opinion…..
Another thing that seems unfair is that my legal alien husband age 74 gets his SS payments decreased from the amount he would normally get considering what he paid in from working here in SS deductions from his pay!!!!!
I think my Social Security should not be tax, I work and I paid my share so why make people pay more on the money the government owe you for all the years you paid in to the system it is wrong.
I think of we stop giving all our money to the illegals and other countries maybe we could have more for us. Imagine how 500,000,000,000 could be split up amongst us all??? It’s time to act like it’s the tea party again
My Social Security is taxed and I live in Florida. I owe taxes every year, I don’t get that much money either, I just don’t think it is fair to have to pay tax on something I already paid tax on and then wind up having to pay taxes to the IRS
Can someone contact me relating to leans on my house for unpaid property taxesI am disabled & my only income is from my Social security disability checks. My annual income is approx 19,000 a year. I became disabled & had no income for yrs waiting on a judgement which in turn caused me to be unable to pay my taxes. Would a lawyer be able to negotiate a payment that is less than the $3,300 thousand they want me to pay. Please help!!
please contact a local Legal Aid society. They can assist getting you help to likely reduce your outstanding debts.
Contact your local Area Agency on Aging and United Way. They can guide you to the proper resources to assist you. Best of luck!
That’s why we call it “Social Insecurity”. It’s a New Deal Era program that is indicative of the kind of corruption that is inevitable among those that are granted extreme power over government programs. The program itself had noble intentions, but has now become a slush fund for vote buying (among other agendas). Further, the benefits are not even close to providing decent supplemental income after retirement. Bottom line: the program should be replaced by something that gets our seniors (all of whom deserve our respect) a better return on the money invested by the working generation(s) that are compelled to contribute to it.
I agree whole heartedly!!
Taxes are counterproductive on incomes below average. The average income in the state of Massachusetts is approx 40k. Federal tax should be a percentage of income above that. State tax should be a surtax on your federal tax. So, using Massachusetts as an example $100,000- 40k = 60k 25% Fed tax + 7% state surtax = 32% 32% of 60K = ~20K. on $1 million – 40K = 960k. 32% of 960k = 320k taxes. All taxes could be done on postcards. Under $40k would not have any tax at all.
With all the taxes working people pay over their working years now you Retire and now pay taxes on Social Security, horrible system unlike the politicians that make these Laws we the people don’t get our salaries for Life after Retirement, start thinking bout people struggling to Live on SS
We pay more than we take home, and the idiot in the white house wants to give all the people coming across the border free housing, medical and other benefits that we pay for and we don’t get. Now tell me it’s ok? To me that’s bullshit!!!
I loved being taxed, all my life, so much, that I choose to live in a place where they can tax me again & again? (most of these states are for yankees, go figure)
You forgot to include the State of Texas, which does tax Social Security.
I’ll pay no more taxes to this corrupt regime.
Indiana does tax social security as income just as the federal irs taxes social security as income.
It is unfortunate that Missouri taxes social security, it is the only thing that is taxed twice. The elderly are taxed so they cannot make ends meet. Also, the rent in Missouri continues to rise, if this situation continues, more and more people will be homeless. I understand that rental property is used to increase the owners’ income, but consideration needs to be given to the consumers, especially the elders. My question is, why raise rent each year at least renewal most people are not getting an increase in their income, especially those on a fixed income.
I think when you are up for retirement you should no longer pay taxes. It’s not like they use our taxes for improving our American land. They use our American tax dollars to help illegals and third world countries. America gave over $60 billion in foreign aid in 2023. That is not what American tax dollars are for. It’s to improve America. If the government needs so much money than stop giving it away. America has enough of its own problems. I think everyone would probably agree that our parents raised us to take care of ourselves first before we take care of others. Along with that, my bills are my bills, my problems are my problems. I don’t expect someone else to take care of them.
Ever wonder what “Uncle Joe” pays on taxes? Does he have one of those “Family Trusts” like the Kennedy Cartel has??? Oh , he gets to live and be fed , housed , flown to wherever he wants ON OUR DIME, yet he still wants to TAX the legal U.S. citizen to death, kill innocent children because of “whatever reason” , he wants to “LIMIT” our freedoms , and he is doing US a favor. Maybe he should “consult DOCTOR Jill”, I am sure she is a TAX “expert”. Oh, she is the “expert” on marriage vows.
I wonder why Hawaii wasn’t included on the worst list????
Thanks (not really) to Utah for taking my money. Some states have an out, depending on age. Utah simply takes my money.
Congress (Senate and lower house) can decide and made it permanent not to tax SS Pension Benefits. We have a very Big thing to say, don’t vote these people in who don’t include in their platform not to tax SS Pension.
We’ve got to pay taxes on Social Security the we contributed to for decades.
How else is the Social Security Administration obtain the funds to give benefits to the massive surge illegal residents?
Remember, SS is more than retirement compensation.
So this article lured me in 13 states that tax our SS. So what other states charge a tax on it?
“This northern state might send you benefits south…..”
New Mexico?
want to find out information
Any tax state or federal on social security income is PURE communism at work!!! Ifpoliticians had the guts it would end!!! Of course their not under SS SOOOOOOOOOOOOOOO they sure don’t care!!!
Wow! Not CA?
I don’t think any social security should be taxed.
Indeed. Work 30 years at min wage now someone could work 10 years now and get more SSDI if needed/eligible. Single boomers, esp women, can’t survive.
In the 2020 election. I voted straight party for the first time ever, because there are a few people I didn’t want to vote for. Anyway I voted straight party. When I checked the ballet it said I voted straight party but not Republican. It said I voted straight Democrat. I went back and checked my ballet and again tried to vote straight Republican and again it said I voted for the Democrats. I tried to get someone to come check the machine no one would. So I went through and voted for each person individually. This time when I checked it was right. I told the pole workers on the way out what happened. They said they would check.. but no one went near the machine. PLease make sure this NEVER happes again. Thank you
I’m on as I live in Washington state I’m way under enough to be tax on my social security . plus we pay tax s on what we buy on top taxes on property it’s hard enough to live now a days let alone being taxed to death im looking for a cheaper way to live and or another state to move to