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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.
Social Security is taxable when your provisional income exceeds abase amount of $25,000 for single taxpayers and $32,000 for married/ head of household taxpayers. Up to 50%, bâ¦ut no more than 85%, ofyour Social Security benefits can be taxable in a calendar year.