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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.
7 people found this helpful. Social Security Disability income can be taxable based upon the other income that is reported on your tax return. Up to 85% of Social Security becomes taxable when all your other income plus 1/2 your social security reaches: 1  Married Filing Jointly - $32,000.  Single or Head of Household - $25,000.