Taxes are virtually impossible to avoid in modern American life. There are taxes on income, purchases, property, and even Social Security benefits. Paying taxes doesn't necessarily leave people smiling from ear to ear, but they're a necessity for funding essential public services and programs -- including Social Security.

Social Security is a much-needed financial safety net for millions of Americans in retirement, but at the end of the day, it's still income. And any time income is involved, so is the Internal Revenue Service (IRS).

The good news is that most Social Security recipients are off the hook when it comes to state Social Security taxes because 41 states have done away with them.

A Social Security card laying between a $100 and $20 bill.

Image source: Getty Images.

What states don't tax Social Security benefits?

Below are the 41 states (along with Washington, D.C.) that currently do not tax Social Security benefits:

  1. Alabama
  2. Alaska
  3. Arizona
  4. Arkansas
  5. California
  6. Delaware
  7. Florida
  8. Georgia
  9. Hawaii
  10. Idaho
  11. Illinois
  12. Indiana
  13. Iowa
  14. Kansas
  15. Kentucky
  16. Louisiana
  17. Maine
  18. Maryland
  19. Massachusetts
  20. Michigan
  21. Mississippi
  22. Missouri
  23. Nebraska
  24. Nevada
  25. New Hampshire
  26. New Jersey
  27. New York
  28. North Carolina
  29. North Dakota
  30. Ohio
  31. Oklahoma
  32. Oregon
  33. Pennsylvania
  34. South Carolina
  35. South Dakota
  36. Tennessee
  37. Texas
  38. Virginia
  39. Washington
  40. Wisconsin
  41. Wyoming

States have been progressively eliminating their Social Security taxes, so even if you're in one of the nine states that still currently tax benefits, that might not always be the case.

Federal tax rules apply regardless of state rules

Regardless of what your state's specific tax rules are regarding Social Security, federal tax rules apply to every Social Security recipient. Luckily, most people won't have to worry about paying anything. However, "most" means that there are some who will.

To determine if you'll be subjected to federal taxes on your Social Security benefits, the IRS uses your combined income. This number includes your adjusted gross income (AGI), half of your annual Social Security benefit, and any nontaxable interest (such as from specific bonds).

For example, if your AGI is $20,000, you receive $24,000 annually from Social Security, and you have $500 in nontaxable interest, your combined income would be $32,500 ($20,000 + $12,000 + $500).

Once the IRS knows your combined income, the following ranges are used to determine how much of your benefits are eligible to be taxed:

Percentage of Taxable Benefits Added to Income Filing Single Married, Filing Jointly
0% Less than $25,000 Less than $32,000
Up to 50% $25,000 to $34,000 $32,000 to $44,000
Up to 85% More than $34,000 More than $44,000

Data source: IRS.

The portion of your benefits eligible to be taxed will be added to your other income and then taxed at your typical income tax rate. For instance, if you receive $24,000 annually in benefits and 50% is eligible to be taxed, $12,000 would be added to your other income and then taxed normally.

Some recipients may have a small tax bill starting this year

President Trump's "big, beautiful bill" included a provision that provides a temporary tax deduction for eligible individuals age 65 and older. The deduction is $6,000 for single filers and $12,000 for couples filing jointly.

To qualify for the full $6,000 deduction, single filers must have a modified adjusted gross income (MAGI) below $75,000, and couples must have a MAGI below $150,000.

Single filers with a MAGI between $75,000 and $175,000 and couples with a MAGI between $150,000 and $250,000 are eligible for a reduced deduction, with the amount depending on where their income falls in the range. If you earn above those levels, you aren't eligible for any deduction.

This deduction is set to remain in place until 2028 and is available even if you take the standard deduction (which typically prohibits you from itemizing your deductions).