Along with federal income tax, you are required to pay taxes on most income you earn as a resident of your home state. This income tax is assessed under specific regulations, and each state has different rules about what qualifies as taxable income.
In twenty-seven of the fifty states and the District of Columbia, Social Security benefits are exempt from state income tax. If you are a retiree in one of the following states, you won’t have to pay state taxes on your Social Security benefits:
- Alabama
- Arizona
- Arkansas
- California
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Mississippi
