Taking Social Security Benefits Without Paying Taxes in 38 States

Many retirees struggle to stretch a Social Security check far enough to cover basic expenses.

It is estimated that Social Security benefits buy approximately 30% less today than 

they did in 2000, according to the Senior Citizens League. What is the reason? 

Inflation-adjusted cost-of-living adjustments are determined by the inflation rate, 

which rises much faster than healthcare and housing costs. You don't want to fork over 

part of your Social Security benefit to state taxes if Social Security will make up a significant 

part of your retirement income. Your benefits won't be touched by 38 states and the District of Columbia.

part of your retirement income. Your benefits won't be touched by 38 states and the District of Columbia.

These 38 states won't touch your Social Security

State Social Security taxes won't apply if you live in one of these 38 states or the District of Columbia. 

Nine of these states do not have state income taxes: Alaska, Florida, Nevada, New Hampshire,

South Dakota, Tennessee, Texas, Washington, and Wyoming

(Note: New Hampshire taxes interest and dividend income). 

As far as other states are concerned, Social Security benefits aren't taxable.

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