Federal rules tax Social Security the same way nationwide, but your state can make a real difference in your final bill.
Which States Tax Social Security in 2026?
The trend has moved sharply toward exemption. As of 2026, the vast majority of states either have no income tax or fully exempt Social Security benefits. Nine states levy no state income tax at all, so benefits are automatically untaxed there. A small group of states still tax some Social Security income, but almost all of them offer age- or income-based exemptions that shield lower- and middle-income retirees. Because state laws change frequently, with several states recently eliminating their Social Security tax, you should confirm your current state's rules with its department of revenue or a tax professional before making relocation decisions.
How Much Does State Taxation Actually Cost?
Even in states that tax Social Security, the bite is usually modest because of exemptions and the fact that federal rules already cap the taxable portion at 85%. Still, for retirees with higher incomes, state tax on benefits, plus state tax on IRA and pension withdrawals, can add up. This is why some retirees consider relocating to no-income-tax states. But taxes are only one factor: cost of living, healthcare access, property taxes, and proximity to family matter too. A state with no income tax may offset it with higher property or sales taxes, so look at your total tax picture, not just Social Security.
How Does Your State and Medicare Connect?
Medicare is a federal program, so your premiums and IRMAA surcharges are the same regardless of which state you live in, they depend on your income, not your address. But your state's tax treatment affects how much retirement income you keep, which influences your withdrawal and Roth strategies. Wherever you live, the licensed agents at 1-800-MEDIGAP (1-800-633-4427) can help you understand Medicare Supplement (Medigap) options and how your income affects your Medicare costs nationwide.