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Some States Tax Social Security Benefits - yahoo!finance
When the Big Beautiful Bill was passed, it included an additional $6,000 reduction for seniors 65 and older. This additional reduction is subject to an income limit. It begins phasing out for singles with a modified adjusted gross income (MAGI) of $ 75,000 and married couples with a MAGI of $150,000 or more. This additional reduction is only available through 2028; after that, it will depend on the next administration to extend it. It may help offset the taxes you pay on your Social Security benefits, but it may not eliminate them.
In addition to the Federal government taxing your Social Security benefits, eight states may also tax them. The eight states are Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Most give tax breaks depending on your age and income. If you live in one of these states, talk to a tax advisor to determine your state tax liability.
Rachel Christian has written a very informative article on the taxation of Social Security benefits.
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