Is Your Social Security Taxed? Federal Rules and the 8 States That Still Tax It (2026)

Is Social Security taxed? Federally, the IRS compares half your benefits plus other income (including tax-exempt interest) to $25,000 single / $32,000 joint; up to 50% or 85% of benefits can be taxable. New for 2025–2028: an extra deduction of up to $6,000 per person age 65+ (phases out above $75,000 / $150,000 MAGI). And for 2026, eight states still tax benefits for some residents: CO, CT, MN, MT, NM, RI, UT and VT. West Virginia's exemption is complete for 2026. Chapters: 0:00 Taxed twice? 0:43 The federal combined-income test 1:29 50% vs 85% 2:07 Worked example 3:20 New $6,000 senior deduction 4:16 The 8 states 5:01 How state exemptions work 5:55 Common mistakes and checklist Sources: IRS Publication 915 (base amounts, worksheet): https://www.irs.gov/publications/p915 IRS Publication 554 (50%/85%, $34,000/$44,000): https://www.irs.gov/publications/p554 IRS enhanced deduction for seniors: https://www.irs.gov/newsroom/check-your-el... IRS Publication 6142: https://www.irs.gov/pub/irs-pdf/p6142.pdf Connecticut OLR report 2026-R-0106 (8 states): https://www.cga.ct.gov/2026/rpt/pdf/2026-R... Money.com, 8 states in 2026 / West Virginia: https://money.com/social-security-state-ta... Retirement Literacy Foundation state table: https://retirementliteracyfoundation.org/d... Colorado DOR subtractions: https://tax.colorado.gov/income-tax-subtra... Disclaimer: Education only, not tax advice. This channel is not a tax professional. Verify with the IRS, your state revenue department or a qualified preparer.