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As of November 2012, there were seven states that did not charge any type of state income tax, including taxes on Social Security benefits. These states include Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Two more states, Tennessee and New Hampshire, do not tax income or Social Security benefits, but do tax interest and dividends.
13 states that tax your Social Security income. The vast majority of U.S. states do not tax Social Security income, which is good news for retirees, especially since we're living longer as a nation and may need our nest eggs to last longer than originally anticipated.3 states that tax your Social Security income. The vast majority of U.S. states do not tax Social Security income, which is good news for retirees, especially since we're living longer as a nation and may need our nest eggs to last longer than originally anticipated.