Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont tax Social Security benefits, but income limits mean not every resident owes state tax. Rates and exemptions vary, and some retirees could owe tax on 2026 returns.
Federal taxes on Social Security can apply in every state when provisional income—adjusted gross income plus tax-exempt municipal-bond interest and half of annual Social Security benefits—exceeds thresholds. Up to 50% of benefits may be taxable for single filers with provisional income between $25,000 and $34,000, or married filers between $32,000 and $44,000. Above those ranges, up to 85% may be taxable.
State income limits can exempt some retirees. In Connecticut, residents owe state tax on benefits only if adjusted gross income is at least $75,000 for single filers or $100,000 for married filers; state tax rates also vary.
