Social Security Trust Fund is expected to dry out within 10 years
The main trust funds used to pay Social Security benefits are projected to run out by 2033 if lawmakers do not make changes to the system.
Straight Arrow News
Social Security benefits are essential for most retirees. According to the National Academy of Social Security (NASI), social security benefits account for more than half of the retirement income of 61% of beneficiaries, and for 20% of people over 65, that is The only source of income. Additionally, NASI states: “Overall, Social Security excludes 22 million Americans from poverty, including nearly 15 million elderly people and 1 million children.”
With all that in mind, it is clear that retirees want to maintain a dollar of their profits if possible. While most people can maintain most of their benefits, some will fall prey to federal benefit taxes. Most states do not impose boons, but some do.
These 41 states do not tax social security
Let’s start with the good news. The following 41 states (and Washington, DC) do not tax Social Security benefits: You may live in any of these states.
- Alabama
- under
- Arizona
- Arkansa
- California
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- main
- Maryland
- Massachusetts
- Michigan
- Mississippi
- Missouri
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- new york
- North Carolina
- North Dakota
- Ohio
- Oklahora
- Oregon
- Pennsylvania
- South Carolina
- South Dakota
- Tennessee
- Texas
- Virginia
- Washington
- Wisconsin
- Washington DC
- Wyoming
These nine states impose social security benefits
Some states do However, Social Security benefits are exactly nine Social Security benefits. But this bad news is not so bad for most people. Many retirees in these states pay little or no tax on social security benefits to their state. Because there are often income or age thresholds, and older and/or low-income residents are excluded from the tax.
Here are nine states:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Yuta
- Vermont
- West Virginia
For example, in West Virginia, people with a federal adjusted gross income (AGI) of less than $50,000 or who have filed jointly with an AGI with a AGI of less than $100,000 will not be taxed on Social Security benefits. Meanwhile, Utah is eliminating social security taxes on people earning up to $90,000.
Incidentally, this list of states that social security benefits for taxes are shrinking. For example, as of 2016, 13 states are taxing social security. So, perhaps by the time you retire, your state won’t tax it.
Your big social security picture
No matter what state you live in, don’t concentrate too much on Social Security Tax or other types of taxes. Remember that every state needs income. Therefore, if your retirement income (or income) is not taxed, you may be subject to heavier taxes regarding sales or property taxes.
Meanwhile, be familiar with your Social Security benefits, whether you are trying to claim them or your retirement is decades apart. Here are some things you need to know:
- You can get a quote for future profits by setting up my Social Security account on the Social Security Agency (SSA) website. In doing so, you will grant access to estimates of future profits. The average monthly retirement benefit was recently $2,002 (as of May 2025), or about $24,000 a year. That’s not that much, so start planning on building other income streams for retirement.
- Most of us should be able to increase future social security benefits checks. There are several ways to do so. For example, delaying your billing or getting more. (A study found that for most people, waiting until age 70 is best to maximize profits.)
- With social security funding shrinking, our future profits are not guaranteed. If nothing is done, profits could shrink in years to come, potentially 81% of what we owed. So it’s wise to keep up with social security development, such as changes made by President Trump’s “big and beautiful bill.” Because some people are likely to undermine the outlook for Social Security.
Resignation plans are extremely important, so take your time to consider issues like how much income you need to retire and how you will accumulate it. Imagine a plan and stick to it.
Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
Most retirees with the $23,760 Social Security Bonus are completely overlooked
A miscellaneous fool’s offer: If you’re like most Americans, you’re a few years (or even more) behind your retirement savings. However, a few lesser known “social security secrets” can help ensure an increase in your retirement income.
One easy trick allows you to pay over $23,760 each year! Once we learn how to maximize Social Security benefits, we can retire with confidence in the peace of mind we want. participateStock AdvisorFor more information about these strategies, see
See “Social Security Secrets”»
