8 States Where Retirees Keep More of Their Social Security Income

Where you retire can affect how much of your income stays in your pocket, even when your Social Security benefit doesn’t change. Most states don’t tax Social Security benefits, and West Virginia joined that group fully in 2026 after completing a three-year phaseout, but retirees should compare property taxes, sales taxes, housing, insurance and other living costs before moving for a tax break alone. Fit Ztudio/Shutterstock

Where you retire can affect how much of your Social Security income ultimately stays in your pocket, even when two retirees receive exactly the same monthly benefit. In 2026, only eight states (Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont) still potentially impose state income tax on Social Security benefits, and even those states offer exclusions or other relief for many residents. That leaves 42 states where Social Security state taxes don’t apply at all, including West Virginia after completing its three-year phaseout this year. Federal taxation is another matter because Social Security benefits can still be federally taxable regardless of where you live. If keeping more retirement income is a priority, these eight states illustrate some of the different ways retirees can avoid state tax on their Social Security.

1. West Virginia Just Became More Social Security-Friendly