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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 income Social Security income may be taxed on your federal return. Minnesota taxes the same amount that is taxed federally. If your only income is Social Security, you are not required to file an income tax return. If you have questions on whether or not your Social Security is taxable, go to the Internal Revenue Service