Pennsylvania Doesn't Tax Social Security: Which States Will, and Which Won't in 2026

For residents of Pennsylvania and millions of Americans nationwide, understanding how Social Security benefits are taxed at the state level has become increasingly important. Pennsylvania is among the 41 states that do not tax Social Security benefits, a significant advantage for retirees living there. However, the taxation landscape continues to evolve, with fewer states now imposing state income taxes on these crucial retirement funds.

According to the AARP, 40% of Americans ages 65 and older depend on Social Security for at least half their income. Where you live makes a substantial difference in determining how much of your Social Security check you actually keep. “Each state makes its own rules, and these policies change over time,” explained Brian Kuhn, CFP, CLU, SVP and financial advisor at Wealth Enhancement Group. “Understanding whether your state taxes Social Security benefits is essential for retirement planning.”

The Nine States Still Taxing Social Security Benefits in 2026

Only nine states continue to tax Social Security benefits as of 2026. These states are:

• Colorado
• Connecticut
• Minnesota
• Montana
• New Mexico
• Rhode Island
• Utah
• Vermont
• West Virginia

It’s worth noting that West Virginia has been phasing out its Social Security taxation, with the state now fully eliminating income taxes on Social Security benefits starting in 2026. Recent policy changes have also reshaped the taxation landscape: Missouri and Nebraska decided to stop taxing Social Security in 2024, while Kansas stopped midway through 2024, removing these states from the list of those that tax benefits.

States Like Pennsylvania That Won’t Tax Your Social Security Benefits

Pennsylvania is part of a growing majority—41 states plus Washington, D.C.—that do not tax Social Security benefits as of 2026. These no-tax states include:

• Alabama
• Alaska
• Arizona
• Arkansas
• California
• Delaware
• Florida
• Georgia
• Hawaii
• Idaho
• Illinois
• Indiana
• Iowa
• Kansas
• Kentucky
• Louisiana
• Maine
• Maryland
• Massachusetts
• Michigan
• Mississippi
• Missouri
• Nebraska
• Nevada
• New Hampshire
• New Jersey
• New York
• North Carolina
• North Dakota
• Ohio
• Oklahoma
• Oregon
• Pennsylvania
• South Carolina
• South Dakota
• Tennessee
• Texas
• Virginia
• Washington
• Wisconsin
• Washington, D.C.
• Wyoming

The expansion of this list reflects a national trend toward protecting retirees’ Social Security income from state-level taxation.

Calculating Your Actual Tax Savings on Social Security

For retirees in Pennsylvania and other non-taxing states, the tax benefits can be substantial. To calculate how much you’re saving, identify your state’s effective tax rate on all other income sources and apply that percentage to your total Social Security benefits. For example, if your effective state tax rate is 5% and you receive $30,000 in Social Security benefits annually, you would save approximately $1,500 in state taxes.

However, even in the nine states that do tax Social Security benefits, not all retirees face the full tax burden. Colorado, for instance, allows residents ages 65 and older to fully deduct federally taxed Social Security benefits on their state income tax returns since 2022. Starting in 2025, that exemption expanded to include residents ages 55 to 64 with an adjusted gross income not exceeding $75,000 for individuals or $95,000 for couples filing jointly.

The Big Picture: Retirement Savings in No-Tax States

The financial impact of living in a state that doesn’t tax Social Security benefits adds up quickly across retirees. “In Missouri, retirees are realizing a collective annual savings of around $309 million,” said Jeff Rose, CFP, founder of Good Financial Cents. “In Nebraska, it’s approximately $17 million. That’s substantial money that retirees retain rather than losing to state taxes.”

For Pennsylvania retirees specifically, avoiding state income taxes on Social Security benefits means keeping more of this crucial retirement income. Understanding your state’s specific tax rules and your personal tax situation remains essential, as regulations vary by state and can change annually.

Whether you’re already retired or planning your retirement strategy, knowing that Pennsylvania does not tax Social Security benefits is an important advantage to factor into your long-term financial planning.