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For the 2024 tax year, 35% of Social Security benefits were exempt from the tax. This year, 65% of benefits are exempt, and beginning in 2026, all Social Security benefits will be exempt.
Here are the 41 states that don't tax Social Security benefits: Alabama. Alaska. ... Ohio. Oklahoma. Oregon. ... that living in a state that doesn't tax any retirement income won't mean no taxes.
Colorado recently reduced its state income tax to 4.25% from 4.4% starting with the 2024 tax year, which applies to all of your taxable retirement income, including Social Security benefits. But ...
In addition to not taxing Social Security retirement benefits, the state won't tax pension income from defined benefit retirement plans. Hawaii doesn't tax distributions from private or pension ...
While Kansas previously allowed anyone with an adjusted gross income of $75,000 or less to exempt their Social Security benefits from state taxes, a bill passed in June 2024 now eliminates taxes ...
Here are the nine states that tax Social Security benefits in 2025: ... out of your accounts early on in your retirement that you risk running out of money. ... help keep taxes on Social Security ...