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State-Level Taxation of Social Security Benefits–An Update
Taxation of Social Security benefits is a continually evolving issue, with the recent One Big Beautiful Bill Act adding some confusion, at least regarding the federal income tax on Social Security benefits. You probably know by now that a workaround in the OBBBA effectively offsets the tax burden associated with Social Security benefits for a large portion of seniors. But what about states that still tax those benefits?
Tax Writer Kate Schubel, in a post on kiplinger.com, provides an update on which states still tax Social Security benefits. Her post also explains how that taxation actually works, since the rules vary in how they apply. So, if you are in one of the eight states still taxing your Social Security benefits, this post is for you.