Can retirees catch a break on Social Security taxation? At the federal level, almost half of all households might pay taxes on a portion of their Social Security benefits, a recent Senior Citizens League survey found. And beyond that, 12 U.S. states tax Social Security at various income levels. In late 2021, North Dakota voted to do away with the tax entirely. On Feb. 17, the New Mexico Legislature passed a bill that would raise the income level at which Social Security benefits would be taxed. On March 8, Gov. Michelle Lujan Grisham, signed it into law. Many of these states have some of the oldest populations. According to the U.S. Census Bureau, In 2019, one in five people in Maine, Florida, West Virginia and Vermont were 65 or older. West Virginia and Vermont still have state taxes on Social Security. Other state-level changes have been made since June 2021, when we last published this list. In the gallery above is an update.
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