States That Don't Tax Social Security Benefits

(Kiplinger) - Some retirees are surprised to learn that Social Security is taxable. The federal government taxes up to 85% of your benefits, depending on your income. Most states, however, exempt Social Security from state taxes. The list of 37 states that don’t tax Social Security includes the nine states with no state income tax, as well as some states that also rank as the most tax-friendly states for retirees, such as Georgia and Pennsylvania. But beware: Some states that exempt Social Security benefits take a big bite out of other types of retirement income. Read More