Living in One of These 42 States? You're in Luck When It Comes to Social Security.

By Kailey Hagen, CFP – Feb 16, 2026 at 10:00AM ESTKey PointsMost states don't tax the Social Security benefits of their residents.Eight states do, but many seniors in these states don't owe them.You're more likely to owe federal Social Security benefit taxes, regardless of where you live.We’re bullish on these 10 stocks ›You'll have one fewer expense to worry about in retirement.You probably aren't choosing where to retire based solely on finances. You may be thinking about where your family and friends are, how you want to spend your time, and what kind of weather you prefer. At the same time, there's no denying that finances shape the quality of life you're able to have in retirement. There are many factors that go into this, including taxes, the overall cost of living, and Social Security. In that last case, you're at an advantage if you retire in one of the following 42 states. Image source: Getty Images. These 42 states don't tax Social Security benefits Residents of the following 42 states don't pay any state taxes on their Social Security benefits, allowing them to hold onto more of their checks: Alabama Alaska Arizona Arkansas California Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Mississippi Missouri Nebraska Nevada New Hampshire New Jersey New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania South Carolina South Dakota Tennessee Texas Virginia Washington West Virginia Wisconsin Wyoming West Virginia residents should note that the state only recently phased out its benefit tax. 2026 is the first year when none of its residents will owe state taxes on their benefits. If your income is high, there is a chance you could still owe state benefit taxes when you file your 2025 return. However, you shouldn't have to worry about this going forward. It's also worth noting that many seniors living in the eight states not listed above don't pay taxes on their Social Security benefits, either. Most states with that tax benefit have exemptions for low- to middle-income households.

Federal Social Security benefit taxes remain a possibility While it's great to have one fewer tax to worry about, it doesn't mean you'll avoid Social Security benefit taxes altogether. The federal government still taxes many seniors' checks, even those with average incomes. Single adults with provisional incomes -- which is your adjusted gross income (AGI) plus any nontaxable interest from municipal bonds and half your annual Social Security benefit -- greater than $25,000, and married couples with provisional incomes greater than $32,000 will owe the federal government a portion of their checks. You may wind up with a smaller tax refund or face a tax bill. In the latter case, you might need to set aside some money to cover these taxes in future years. If you're worried about how this might affect your retirement taxes, it's worth consulting an accountant who can give you personalized advice.Read NextFeb 16, 2026 •By Dana GeorgeThe Desert City That's Winning Over Retirees Who Don't Want a "Typical" Retirement TownFeb 16, 2026 •By Christy Bieber3 Rules All Retirees Must Know About Working While Collecting Social SecurityFeb 16, 2026 •By Maurie BackmanRetirees, Don't Make This Costly RMD MistakeFeb 16, 2026 •By Dana GeorgeWhat It Took for My Husband and I to Go from Nothing to Enough to RetireFeb 16, 2026 •By Selena MaranjianDo Billionaires Still Collect Social Security?

The Answer Might Surprise YouFeb 16, 2026 •By Dana GeorgeWhy These Northeast Destinations Are Winning Over Retirees Seeking Quiet, Safety, and ComfortAbout the AuthorKailey Hagen, CFP, is a contributing Motley Fool retirement analyst covering Social Security, Medicare, and retirement planning.

Before The Motley Fool, Kailey was a research analyst for Reviews.com focusing on credit and banking products. She is a Certified Financial Planner® and holds a bachelor’s degree in English from the University of Wisconsin-Madison.TMFKailey