From Nasdaq: 2025-04-13 05:45:00

Americans work hard and pay taxes throughout their career, but when they retire, they no longer have to work as hard. However, taxes are still inescapable, regardless of age. As of 2025, 41 states don’t tax Social Security benefits, providing some relief for retirees. Nine states still tax Social Security, including Colorado, Connecticut, and Minnesota. Some states exempt certain income levels from taxation. Federal taxes on Social Security benefits depend on income levels, with President Trump proposing to eliminate federal taxes on retirees’ benefits, which could impact the program’s trust funds.

In addition, 41 states currently do not tax Social Security benefits, while nine states do not tax any income at all. Mississippi recently passed legislation to phase out its state income tax by 2040. Despite state variations, Uncle Sam may still require federal taxes on Social Security benefits based on income levels. Retirement savings are crucial, with potential to boost income through “Social Security secrets.” Join Stock Advisor to learn more about maximizing benefits.



Read more at Nasdaq: 41 States That Don’t Tax Social Security Benefits