10 U.S. States That Tax Your Social Security Benefits (and How)

Colorado

State Taxes on Social Security: If you are less than 65 years old, you can have up to $20,000 of Social Security benefits excluded – as well as other kinds of income. Retirees over 65 years old can exclude benefits and other retirement income up to $24,000.

Sales Tax: 2.9% state levy. However, localities can add as much as 8.3%, making the average combined rate of 7.50%.

Income Tax Range: Every Colorado resident with federal taxable income must pay a rate of 4.63%.

Property Taxes: The average property tax on a median home value of $247,800 is $1,489.

Inheritance & Estate Taxes: None.

 

 

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79 thoughts on “10 U.S. States That Tax Your Social Security Benefits (and How)”

    1. when you work, your taxed on your gross income.that tax includes SS that is a part of your tax, then you are taxed again when you receive SS, in CT you also have to pay 6% personal property taxes every year for tools or equipment you have in your possession after paying fed and state sales tax at time of purchase (this tax should be scrapped) People wonder why people and business are leaving CT in droves and why house sales are down, so many empty or abandoned houses. The average monthly house tax in CT more than exceeds your monthly mortgage. Ct the tax you to death state where Democrats have run up a 3 billion dollar deficit where Ct representatives like Bloominthal spend more time trying to make illegal new rights & laws for illegals who don’t pay taxes and illegally put them on benefit programs reserved for taxpayers who have paid into the program, draining SS, They forget they are in the employ of the tax payer, not the illegal.The Constitution is clear regarding illegals, they have no rights period. illegals are responcible for abuse of their kids, not Americans.

      1. Ct is losing people and is also one of the few states that have seen little to NO rebound after the horrific Obama eight year catastrophe. Even now CT voters continue to vote communist and support failed leadership like useless Murphy and ‘Stolen Valor’ liar Blumenthal. The unamerican aristocracy of
        CT must be replaced with conservative people and a financial plan to end the loss and drain CT’s Swamp.

      2. Leonard J Clayton

        THIS GOES TO SHOW YOU HOW CORRUPT OUR GOVERNMENT IS AND THEY ARE A BUNCH OF THIEVES THE SHOULD ALL BE LOCKED UP AND THERE MONEY THAT THEY GET SHOULD BE CUT IN HALF AND THEY SHOULD BE PAYING FOR THE ILLEGALS-AND ALL OF THE BENEFITS THAT THEY ARE GETTING IT SHOULD NOT BE ON US TAXPAYERS WHO PAID INTO THE SYSTEM

      3. the democrats only wanted to preserve the right to SS as all workers have paid into it —
        This has been 30+ years where rep and dems have been at odds
        and the last dem gov in CT cut Svcs a lot in an effort to bri g CT back from the doors of bankruptcy—. EVER SINCE LOWELL WEICKER put the “TEMP PAY TAX”
        OR MAYBE YOUR TOO YOUNG TO REMEMBER IT WAS TO BE TEMPORARY ??

    2. Death and Taxes for sure. I wonder why you have to pay taxes on a car when you buy it then every year to drive it ? I wonder why you have to pay taxes on your home and property every year then again when you sell it. There are many examples when we are Double taxed. And what do you get for your money ?
      And why does the government owe soo much money . Where is the accountability. 115 million to play golf trips overseas that cost hundreds of thousands of dollars. Best Healthcare Best pensions. Ours go bankrupt.

      1. Because Social Security is a Federally Funded Program, not a State Funded Program. Sales Tax is a State Funded Program. The amount of SS Tax you pay is based on your salary. After a certain cut off amount, you pay a percentage of your social security. Under a certain amount, you pay no tax on your social security. There is a formula/work sheet printed in the Tax Booklet each year. It is quite easy to figure it out if you can do simple math. I will be paying the tax the rest of my life. I did so when I lived in Florida, and I have to continue where I now live, which is Georgia.

      1. WE the people need to fix this… we have ALREADY paid our dues on this money, it’s called INCOME TAX! DAMN THIEVES is all they are, trying to give free money to people who didn’t earn it and damn sure don’t deserve it more than the people who have ALREADY PAID FOR IT!???

  1. Larry D Denton Sr

    I feel once you have attained the age of 70 and over , you should not have to pay taxes on social security.

    1. Why should you have to pay on SS at all? You have already paid on that money when you were working. The Federal government is taxing those people twice, Night right

  2. wv has 180 million left over why tax their seniors. we work and pay tax all our life I have pay from 1965 to now. 42 years in the coal mines .I payed taxes when I made 50 cent a hour in high school and ssi/

    1. It feels like you get taxed twice, your taxed while earning the money that pays for your social security and then that taxed again, doesn’t feel right

  3. Why should taxes be paid on income that has already been taxed, once before? Yet, voters seem to be obliging our tax dollars to clueless, non-working, lieng, free world handout politicians in the Congress. All those, in that chamber, that are for the process of the Pres., and his ideas, should bull role over the detractors in pursuit of this Nation moving forward. Moving ‘forward’ might be removing them from the political spectrum.

  4. We live in Michigan. Our combined retirement income is less $30,000. Let those in the U.S. Senate and Congress try to live on that and see how it feels.

  5. Isn’t Social Security a tax when we paid into the system? Now, when we draw on that investment we’re taxed again. It must be a tax, when a tax payer dies before drawing SS, no one is entitled to that money. It belongs to the government. I know we pay taxes for SS in California. California taxes it people for

  6. Isn’t Social Security a tax when we paid into the system? Now, when we draw on that investment we’re taxed again? It must be a tax, when a tax payer dies before drawing SS, no one is entitled to that money. It belongs to the government. I know we pay taxes for SS in California. California taxes it people for EVERYTHING!

    1. Ca taxes my SS benefits and if you don’t pay into Medicare (I pay $121 a month) then it takes at least 6 months to get back into it. Living on $1250 a month is hard and them taking out that $121 hurts!!!

  7. patricia burman

    social security benefits is something you paid into while working How can you be taxed on it……..that’s double taxing you

  8. My earnings were taxed, and my employer paid a tax on them when they were earned.
    I should not be required to pay an additional tax
    again now that I’am retired.
    They play word games so as to take more of your money and give it to ???.

  9. Why do we still have to pay tax on Social Security when we have worked hard all our life to put Social Security money aside for retirement it just not fair why we had to pay it I would never understand, I have Retired In still paying Tax

  10. Do you no who started taxing social security. You guessed it. the demo-rats. do you no who started using social security for the general fund. You guessed it the demo-rats. Now it is called an entitlements. No it’s not entitlements. Entitlements are welfare, food stamps, and medicaid.

      1. I don’t think so, al gore broke the tie in the senate when he was Vice President under Clinton. That’s one of the reasons I didn’t vote for him when he ran for president against bush. Demorats don’t like people who work for a living and pay taxes, that’s why they want the illegals in the country. Lyndon Johnson administration put social security money in the general fund.

    1. Joe, I know it’s tuff for republicans to access facts and history but get a clue.
      Republican hero Ronald Reagan started started the great rip off of social security to fund his wars and tax cuts for the rich. He sold the tax increase by promising
      that the “surplus” would be invested for the baby boomers when they retired.
      He borrowed against the fund and left junk bonds in it’s place.

      1. Jay, You should dig deeper, to get the facts you are looking for! Many, including dem’s and Republicans contributed to the taxing of everything we have and do! It’s how the government keeps the money, and the American people under their thumb! Just an Interesting fact!

    2. Actually it was R. Reagan who started taxes on Social Security!!! Sounds like you all are so quick to blame Democrats!

    3. WOuldnt you want to Know

      Where do you get your information? Did you know former Congress leader Paul Ryan, R. Wisconsin and present Senate majority leader Moscow Mitch McConnel wanted to and want to reduce Social Security as it is they, these two republiCONS that call it what you call it entitlements. Get your FACTS straight and I suggest you stop watching FUX news.

  11. In California our Social Security is taxed if its over $24,000 a year. When you reach age 70 you shouldn’t have to pay taxes or do tax returns at all !! They’ve paid all 90% of their lives and by not most are disabled and don’t drive. Should get a break now.

    1. Social security Taxes have been paid by all working American seniors their whole adult life! They have retired without pensions in most cases these days. I was supposed to be able to retire and collect my social security when I turned 55 years old! Thanks to the Demorl-Cats I have been pushed to the age of 64 before I am able to retire!. I have served and bleed for my country and worked in a very physical demanding job in the oil field dealing mostly drilling for natural gas. I am broken down now and I’m only 59! It’s taking me forever to get SSDI I have paid into since I was 13 years old making only $1.20 an hour minimum wage ($79.00 a month in the military!) I know things have changed but many of them have been very bad for this country! I believe if you don’t contribute to the social security fund, you shouldn’t be able to draw from it!! I’m not talking about the folks that have been disabled by some tragity such as birth defects,war or other disasters. But it shouldn’t be available to those who’ve never worked nor B.S. reason(s) like they can’t handle crowds or people or have an addiction or even think they are too ugly to work! (True story!) woman was on welfare her whole life; when her last child left the house she was granted SSDI because she was deemed UNTRAINABLE!! ( another true story!!)

  12. I don’t understand why people who collect little Social Security (ex $600 – $1900) a month should be taxed in any state; that’s not enough to even live on.

    1. CORRECT, PEOPLE THAT FALL INTO THAT WAGE EARNINGS BRACKET SHOULD NOT HAVE TO PAY TAXES
      $ 600 to 1900 is not enough to live on , I wish these politicians would get there head out of thier asses and do their jobs and stop lining their fat ass pockets and cronies pockets with special interests…. stop the corruption in our government. Otherwise we are heading for Brexit within our country , and another civil war. We worked our lives for what ? Oh yeah , the shitty end of the stick !!!!

  13. ISNT THIS PAYNG TAXES ON TAX.ISNT THIS IM 79 AND ALWAYS TOLD I WAS TO GET A RAISE ON THEM [THEY TOOK MORE AWAY THEN THEY GAVE. ANY ONE HAVE A BOX CHEAP ONDER A BRIDGE THIS IS NO FUN R JOKE. THEY SAY PEOPLE ARE DIEING BY DRUGS. WELL LOOK AT DISPARE AND JUST GIVEING UP FROM HUNGER /NOTHING TO

  14. Not only is your income double taxed when you are taxed on SS but you are also taxed every time you spend that income. If you save the money you are taxed on the interest your money earns.if you put it in a retirement fund you are taxed again when you draw it. The federal bank fabricated all the money out of thin air and also taxes our government, us, and the banks they loan the fabricated money to have to pay interest. The banks in turn loan fake money to us and they then compound the loadable money 10x each time they loan to someone else. It is the most upsurd system imaginable.

  15. I prepare taxes in California where it is not taxed on the State level. For the past 30+ years of doing taxes I have shook my head that huge organizations like AARP have not pushed for it to be non-taxable. It is absolutely, positively already taxed money. And furthermore, if you’re self employed you paid taxed on both the employer and employee side of the income. The ONLY way it’s gonna get fixed (and this is true of the VA medical situation as well but that’s a different subject) is if government employees and politicians have to pay into it too. Unless it hits their pocketbook it’ll never change and I suspect that the AARP peeps are on the take as well or would have been a huuuge voice or this subject years ago.

  16. We Californians pay tax on tax refund from the previous year. If that’s not double taxation, then what is? Also, because of the mumble jumble that put on last year’s ballot, the state legislature can raise your gas tax anytime they feel like it.

  17. I AM ON SOCIAL SECURITY/DISABIDLY AND I LIVE IN WATERLOO, IOWA I LIKE TO KNOW IF I HAVE TO FILE TAXES THIS YEAR OR NOT. I AM 58 YEARS OLD AND UNABLE TO WORK AND SO IS MY HUSBAND. I HEARD IT FROM SO MANY BODY THAT I HAVE TO SO CAN SOMEBODY IN THAT LINE OF WORK PLEASE LET ME KNOW.

    1. The best answer is from a tax return preparer. Bottom line, if you don’t owe, you don’t have to. However, how will you know unless you file. You might actually get something back.

  18. Taxation without representation!
    We worked all our lives and pay taxes. I am on Disability benefits (SSD) that I paid for from working and receiving $1260.00 a month and according to the SSD guidelines I can’t make more than $800.00 extra a month by working part time or temporary if I am able. The last few years I was able to work full time I made $18.59 an hour plus $600.00 quarterly bonus. In other words I could buy groceries and some of my medications and my dog’s health insurance and food. Now it’s pick and chose what I can pay. Why can’t those on SSD make the wage they used to make part but time? If I could make the $18.00 per hour I used to at 15 or 18 hours a week it sure would help with bills and medications insurance doesn’t cover.

  19. Always blame the Democrats…the Repos are for the rich and only the rich and it is sickening let them try to live on what the seniors on SS have to live on then tax them. The Repos in Washington are rich and don’t have to worry about anything. Give them a SS check and tell them you are going to tax it and no more other money and no more paid health benefits they will change their tune!!

    1. I am 80, and i will tell you that it is BOTH political parties. You put them in a sack and expect the bad guys to fall……they both fall out. I am for neither party. I see a lot of stuff going on that should not be going on. I am a widow and draw 1/2 of my husbands retirement plus Social Security. In total I make less than $40,000 per year. Still I have to pay taxes!! I should be considered in poverty.

  20. What is the purpose for FICA?(Federal Insurance Contributions Act) this money is taken out of workers paychecks to pay older Americans their social security retirement and health care benefits. It provides benefits for the disable, widowers, children. It is call payroll tax. Then there is the pre/post tax on retirements, disability, so on…MEDICARE and retirements are taxed again even though it’s already included in FICA, right! now, here’s another one Advantage Health Care tax! you have to have? Now, state taxes, IRA taxes. all these taxes(money)where and who does it go to and why? Definitely, not to the people of this country! I am sick of all these taxes!!!

  21. James Dougherty

    I agree 100% with everyone. Why should retirees on Social Security have to pay taxes. We have paid in all our lives so we could have this when we retire. It’s absolutely ludicrous

  22. Patricia a Ringsdorf

    We,the slave and peasant classes ,must pay taxes to keep our elitest rulers in the luxurious style to which they have accustomed themselves…simple as that.

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  24. I have observed that in the world nowadays, video games would be the latest fad with kids of all ages. There are times when it may be unattainable to drag young kids away from the video games. If you want the best of both worlds, there are various educational activities for kids. Great post.

  25. Social Security is deducted from earned income just as a 401k is deducted. It is called a tax, but if you think of it as a forced savings retirement plan it is in effect being saved for you by the government, and then paid out to you in retirement. It acts as a lifetime annuity in that nothing is left for heirs when we die. So, it is not actually taxed when it is taken from the pay check. If your income is Lower in retirement than when you were working the social security is then taxed at a lower rate, just like an IRA or a 401k. If it were not taxed at all in retirement, it would be more like a Roth IRA, which you pay income tax on when you save it, but not when you take it in retirement. Confusing I know, but Social Security is not unfair, unless you die too early. Another way to look at it is that if you put in $10,000/yr for 40 years you would have $400,000 saved (plus some earnings, so let’s say $500,000. Taking 5% per year would give you $25,000/ year, taxed depending on your tax bracket. It’s really reasonably fair.

  26. I was told by some guy I work with. that if you come into this country never worked a day here you can get medical and 400 a month from ss.

  27. Also, the republiCONs bashing the democrats here after they only watch the lying rhetoric of the likes of FUX news probably are unaware that it was FDR a Democratic President and a Democratic Congress under him that created the program that republiCONS have been trying to destroy ever since. Rush (Pill popping) Limpaw and FUX news will never let their minions know this.

  28. Also, the republiCONs bashing the democrats here after they only watch the lying rhetoric of the likes of FUX news probably are unaware that it was FDR a Democratic President and a Democratic Congress under him that created the program that republiCONS have been trying to destroy ever since. Rush (Pill popping) Limpaw and FUX news will never let their minions know this.

  29. people make laws not the other way around. the only reason the people who make and enforce these laws want you to pay these taxes is MONEY. you only got a small amount of time left on this planet so lets get what we can while we can. taxes and insurance and any other department all operate the same the older you get the more its gonna cost you. everything in your world is money motivated and no mater what you think should be or happen they are coming for it. what should you do , well the first thing is to stop looking at the government as a person. its just a name. the people are the ones passing these hardships down to you. your neighbors yours friends your family. people just like you. if you ask them why they put this on you they will always hide behind the most dangerous sentence known to us, IM JUST DOING MY JOB!! ..to be cont… the coxsman

  30. How can we get more SS? My husband can not work, had 4h stage COPD, very serious. I was working. part time, but need to care for him. Is there any way to get disability or caretaker money? He 8s 78 and I am 69. We need help to get med’s and live in an apartment. PLEASE HELP US, Thank you, Lindy Walsh

  31. I pay tax on my ss and lost almost half of my ss check because I worked for the city here in California, now live in Colorado and pay tax on my ss. I should have ran for a political position and become a millionaire and receive the same wage when retiring and get the best health plan.

  32. Adrienne Scott Wilcox

    Since I took my early retirement to move to the Sunshine State. What a terrible waste to the system. Social Security has been abused in our deficit beginning in the 70’s. Too many hands in the pot to try to alleviate the problems of this Nation. When we used textiles in this country it was very productive. Since this act has committed to help the American people is just a hoax. We worked hard in this system to be reduced to be a poverty level household to say this matter is designed to keep tabs on this fix income to just let the people know who are we to be our own government to protect our assets. Well the real thing is taxes will never be satisfied to this decade of living. As long as they get the kickbacks it’s a shame to see our great Country is in Dire Straits.

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