15 States That Won’t Tax You on Social Security Benefits When You Retire


As we approach the golden years of retirement, financial considerations become paramount. While the federal government taxes Social Security benefits based on income thresholds, not all states follow suit. Here are 15 states where you can retire without worrying about these taxes.


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Delaware is considered one of the most tax-friendly destinations for retirees. There are no social security benefits tax, state or local sales tax, state income tax, estate tax, or inheritance tax. Also, Delaware’s property taxes are relatively low, so you can finally buy your dream home.


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Here, the residents enjoy the advantage of no state income or sales tax, and Social Security benefits are tax-exempt as well. This advantage gives retirees a significant financial boost, maximizing their retirement income. Furthermore, Alaska has one of the nation’s lowest property tax rates.


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Nevada’s tax policies are notably advantageous for retirees compared to other states. The absence of state income and Social Security benefits taxes allows retirees to preserve more of their retirement savings, providing financial peace of mind in their golden years.



Florida offers retirees a favorable financial environment with no state income tax and no tax on Social Security benefits. Moreover, Florida’s warm climate and abundant recreational activities make it an attractive destination for those seeking an active and vibrant retirement lifestyle.


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While property taxes in Texas can vary depending on location, there are no state income taxes and no taxes on Social Security benefits. Additionally, Texas offers a relatively low cost of living, enhancing its appeal for those seeking to make the most of their retirement savings.


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California does not tax Social Security benefits, providing some relief for retirees. However, the state does impose a state income tax, which can be relatively high compared to other states.


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Social Security benefits are tax-free in Georgia, while income tax rates are moderate, with a top marginal rate of 5.75%, making it competitive with other states. Property taxes in Georgia vary by county but are generally lower than in many states, especially in rural areas.


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Hawaii’s breathtaking natural beauty and unique cultural heritage make it an enticing destination for retirees. Nevertheless, the state’s tax policies present a mixed picture. While Hawaii does not tax Social Security benefits, it imposes a state income tax, with rates ranging from 1.4% to 11%, depending on income level.

New Hampshire

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Even though New Hampshire doesn’t tax Social Security benefits or earned income, interest and dividends are taxed at a flat rate of 5%, which may affect retirees with significant investment income. Property taxes are high, but the state offers programs to help mitigate the burden for eligible homeowners, including the elderly.

South Dakota

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South Dakota is a tax-efficient paradise for retirees, with no taxes on Social Security benefits and state income tax. Plus, property taxes in South Dakota are low, making homeownership more affordable.


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For those considering retirement in Wyoming, the state’s friendly communities, low crime rates, and high quality of life make it an attractive destination for retirees seeking a peaceful and fulfilling retirement lifestyle. Additionally, Social Security benefits and income are not taxed in Wyoming.


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Tennessee does not have Social Security taxes, and property taxes are quite low. The state’s moderate cost of living, diverse nature, and rich culture make it an appealing option for those considering retirement.


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Washington stands out as a tax-friendly destination for retirees. It doesn’t impose a tax on Social Security benefits or state income, providing major savings for seniors. Additionally, Washington does not have an estate tax, making it an attractive option for those concerned about estate planning.


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You won’t pay a Social Security benefits tax, and the income tax is low, with a top of 6.925%, making this state competitive compared to other states. Whether you’re attracted to the Sawtooth Mountains or the vibrant culture of Boise, Idaho works for those seeking a fulfilling retirement experience.


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Illinois doesn’t tax Social Security benefits, but the income tax is from 4.75% to 7.99%. Property taxes are high, which can be a significant consideration for retirees on fixed incomes. However, senior property tax exemptions and deferral programs decrease the burden for eligible homeowners.


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