Eight States Tax Social Security Benefits, Affecting Senior Income

Eight states currently tax Social Security benefits, including Rhode Island, Colorado, Utah, Connecticut, New Mexico, and Minnesota. Residents in these states may owe state taxes on their benefits when filing their 2026 tax return. However, most states have income limits that exempt low- and middle-income seniors from paying these taxes. For instance, Connecticut residents owe state taxes only if their adjusted gross income is $75,000 or more for single filers.

State taxation on Social Security benefits directly reduces the disposable income of seniors in the affected states. The tax structure is applied to benefits received under the Social Security program in these jurisdictions. This taxation occurs in addition to federal taxes that apply to seniors whose provisional income exceeds certain thresholds.

Social Security benefits are already subject to taxation based on annual income thresholds in certain circumstances.