41 States That Don't Tax Social Security Benefits
The Social Security program is complex enough as is. Retirees can claim benefits at different ages, and the amount they are entitled to is based on the number of years worked, their career earnings, and when they claim benefits relative to their full retirement age (FRA).
However, another confusing aspect of the program is how Social Security benefits are taxed, particularly at the state level, where states can tax benefits at their discretion. Luckily, the bulk of the states in the U.S. choose not to tax Social Security benefits. Here is the list of 41 states that don't levy taxes on Social Security.
Before I review the states that don't tax Social Security, let's examine the nine states that do tax benefits, with most of them applying different rates. Keep in mind that states' tax policies often change, and not all taxes are that punitive, due to certain exemptions. Here's the list of states that still tax Social Security:
Source Fool.com
