Many states impose Social Security benefits (27, to be exactly) and 13 states tax only a portion. Find how different states tax your Social Security benefits!
Based on the age of the taxpayers, this state exempts pension and annuity income, including Social Security benefits. If taxpayers report taxable Social Security benefits on their federal return, this federal taxable portion can qualify to be excluded from Colorado state tax under the Colorado pension subtraction system.
The next state may be known as The Land of Steady Habits, but it’s steady taxes too…..