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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.
So, for a married couple with an income (adjusted as described above) less than $32,000, none of their Social Security benefits are taxable at the federal level. In the income range $32,000 to $44,000, between 50 to 85 percent of Social Security benefits may be taxable at the appropriate marginal tax rate. Above $44,000 in adjusted income, 85 percent of benefits may be taxable.