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State Taxes on SSDI Benefits: Which States Tax Them?

Published:
8/27/26
Updated:
Author:
Lisa Johnson

Most states do not tax Social Security Disability Insurance (SSDI) benefits, but a few tax SSDI under certain circumstances.

Living in a state that can tax SSDI doesn’t mean you will owe state income tax on SSDI benefits.Your state’s rules determine whether SSDI is taxable and if you owe state tax.

This article explains state taxes on SSDI benefits.

SSDI Tax Rules by State

The chart below shows the rules for SSDI taxes in all 50 states and Washington, D.C., that applied in 2025. Please check the rules for your state for the current year.

SSDI Tax Rules by State

State Does the state tax SSDI? What you need to know Official tax source
Alabama No SSDI is excluded from Alabama taxable income. Alabama Department of Revenue
Alaska No Alaska does not have an individual state income tax. Alaska Department of Revenue
Arizona No SSDI is excluded from Arizona taxable income. Arizona Department of Revenue
Arkansas No SSDI is not subject to Arkansas income tax. Arkansas Department of Finance and Administration
California No California does not tax SSDI benefits. California Franchise Tax Board
Colorado May tax SSDI depending on circumstances SSDI is fully exempt if AGI is under $75,000 for single or married-filing-separately filers, or under $100,000 for other filing statuses. Above those amounts, a state adjustment may apply. Connecticut Department of Revenue Services
Delaware No Delaware excludes SSDI from taxable income. Delaware Division of Revenue
District of Columbia No SSDI benefits are excluded from D.C. taxable income. D.C. Office of Tax and Revenue
Florida No Florida does not have an individual state income tax. Florida Department of Revenue
Georgia No Georgia does not tax SSDI benefits. Georgia Department of Revenue
Hawaii No SSDI benefits are not subject to Hawaii individual income tax. Hawaii Department of Taxation
Idaho No Idaho does not tax SSDI. Idaho State Tax Commission
Illinois No SSDI is subtracted from Illinois income. Illinois Department of Revenue
Indiana No Indiana allows a deduction for federally taxable SSDI. Indiana Department of Revenue
Iowa No Iowa excludes SSDI from taxable income. Iowa Department of Revenue
Kansas No SSDI is fully exempt from Kansas income tax after 2023. Kansas Department of Revenue
Kentucky No Kentucky excludes SSDI from state taxable income. Kentucky Department of Revenue
Louisiana No SSDI benefits are exempt from Louisiana income tax. Louisiana Department of Revenue
Maine No Maine does not tax SSDI. Maine Revenue Services
Maryland No Maryland provides a deduction for SSDI included in federal AGI. Comptroller of Maryland
Massachusetts No Massachusetts does not tax SSDI. Massachusetts Department of Revenue
Michigan No SSDI is not taxed by Michigan. Michigan Department of Treasury
Minnesota May tax SSDI depending on circumstances Minnesota allows an SSDI deduction that phases out above adjusted gross income (AGI) of $108,320 for joint filers, $84,490 for single or head-of-household filers, and $54,160 for married-filing-separately filers. Minnesota Department of Revenue
Mississippi No Mississippi does not tax SSDI. Mississippi Department of Revenue
Missouri No SSDI benefits are deductible from Missouri taxable income. Missouri Department of Revenue
Montana May tax SSDI depending on circumstances Federally taxable SSDI is included in Montana taxable income. Taxpayers age 65 or older could qualify for a $5,660 age-based deduction in 2025. Montana Department of Revenue
Nebraska No Nebraska excludes SSDI from state taxable income. Nebraska Department of Revenue
Nevada No Nevada does not have an individual state income tax. Nevada Department of Taxation
New Hampshire No New Hampshire does not tax SSDI benefits. New Hampshire Department of Revenue Administration
New Jersey No SSDI is not subject to New Jersey income tax. New Jersey Division of Taxation
New Mexico May tax SSDI depending on circumstances New Mexico exempts SSDI when income is below $100,000 for single filers, $150,000 for joint, head-of-household, or qualifying-surviving-spouse filers, and $75,000 for married-filing-separately filers. New Mexico Taxation and Revenue Department
New York No New York excludes SSDI from taxable income. New York State Department of Taxation and Finance
North Carolina No North Carolina does not tax SSDI. North Carolina Department of Revenue
North Dakota No North Dakota allows an exclusion for the taxable portion of SSDI reported on the federal return North Dakota Office of State Tax Commissioner
Ohio No Ohio allows a deduction for taxable SSDI included in federal AGI. Ohio Department of Taxation
Oklahoma No Oklahoma allows federally taxable SSDI to be deducted from state income. Oklahoma Tax Commission
Oregon No Oregon does not tax SSDI. Oregon Department of Revenue
Pennsylvania No SSDI benefits are not subject to Pennsylvania personal income tax. Pennsylvania Department of Revenue
Rhode Island May tax SSDI depending on circumstances Rhode Island may exempt SSDI if you or your spouse was born on or before March 1, 1959, and AGI is below $107,000 for single, head-of-household, or married-filing-separately filers, or $133,750 for joint or qualifying-surviving-spouse filers. Rhode Island Division of Taxation
South Carolina No South Carolina does not tax SSDI. South Carolina Department of Revenue
South Dakota No South Dakota does not have an individual state income tax. South Dakota Department of Revenue
Tennessee No Tennessee does not have an individual state income tax. Tennessee Department of Revenue
Texas No Texas does not have an individual state income tax. Texas Comptroller of Public Accounts
Utah May tax SSDI depending on circumstances For the 2025 tax year, Utah offered a nonrefundable credit for taxable SSDI benefits. The credit began phasing out above taxable income of $45,000 for married-filing-separately filers, $54,000 for single filers, and $90,000 for joint or head-of-household filers. Utah State Tax Commission
Vermont May tax SSDI depending on circumstances Vermont fully exempted SSDI when AGI was $50,000 or less for single, head-of-household, surviving-spouse, or married-filing-separately filers, and $65,000 or less for joint filers. The exemption phased out completely at $60,000 and $75,000, respectively. Vermont Department of Taxes
Virginia No Virginia does not tax SSDI. Virginia Department of Taxation
Washington No Washington does not have individual state income tax. Washington Department of Revenue
West Virginia May tax SSDI depending on circumstances For 2025, taxpayers below the state's income limits could deduct all SSDI benefits included in federal AGI. Taxpayers above those limits could deduct 65% in 2025. West Virginia State Tax Department
Wisconsin No Wisconsin does not tax SSDI. Wisconsin Department of Revenue
Wyoming No Wyoming does have an individual state income tax. Wyoming Department of Revenue

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SSDI Tax Rules in U.S. Territories

U.S. territory Does the territory tax SSDI? What you need to know Official tax source
Puerto Rico No Puerto Rico excludes Social Security benefits from gross income, so SSDI is not subject to Puerto Rico income tax. Puerto Rico Department of the Treasury (Hacienda)
Guam May tax SSDI depending on circumstances Guam uses a territorial income tax system based closely on the U.S. income tax system. For 2025, Guam’s Form 1040 includes the federal Social Security benefit calculation, so taxable SSDI can be included in Guam taxable income. Guam Department of Revenue and Taxation
U.S. Virgin Islands May tax SSDI depending on circumstances The U.S. Virgin Islands uses a mirror of the federal income tax system. SSDI can therefore be taxable under the same basic Social Security benefit rules used for federal income tax. U.S. Virgin Islands Bureau of Internal Revenue
Commonwealth of the Northern Mariana Islands May tax SSDI depending on circumstances CNMI uses its own territorial income tax system. Its 2025 forms include Social Security benefits in the income tax calculation, although other CNMI deductions may apply depending on the return. CNMI Department of Finance, Division of Revenue and Taxation
American Samoa May tax SSDI depending on circumstances American Samoa has its own income tax system. Tax treatment depends on residency and how income is reported under American Samoa tax rules. Check the current American Samoa Tax Office instructions before filing. American Samoa Government Tax Office

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Factors That Affect State Taxes on SSDI

When a state taxes SSDI, the amount you owe depends on your income, filing status, household income, age, and any SSDI tax exemption, deduction, or credit you qualify for. 

The tax year matters too because these rules can change.

State vs. Federal Taxes on SSDI

Some states use information from your federal return when calculating state taxable income, then apply their own SSDI rules. Therefore, SSDI can count as taxable Social Security benefits federally but still be partly or fully exempt from state tax. 

This article focuses on state taxes on SSDI. Use current federal tax instructions for federal taxes. Learn more about federal taxes on SSDI.

How SSI Is Taxed

Supplemental Security Income (SSI) is not taxable because it’s a needs-based program funded by general tax revenues rather than Social Security payroll taxes.

If SSI is the only benefit you receive from Social Security, you won’t receive a Form SSA-1099 for those payments.

SSDI Taxes After Moving to Another State

If you moved to another state during the tax year, you may need to follow part-year resident tax rules in both states. Check each state’s part-year resident tax rules to see how your SSDI should be reported for the time you lived there.

Checking Your State's Current SSDI Tax Rules

Check your state’s current tax instructions to see how its SSDI rules apply to you.

  • Go to your state’s official tax agency website.
  • Find the instructions for the tax year you are filing.
  • Find the state’s SSDI rules.
  • Check any income, filing status, age, or other requirements.
  • Complete any required worksheet.
  • Get qualified tax help if the instructions do not clearly answer your question.

If you have not been approved for SSDI yet, Advocate can help. 

Our disability specialists can help you apply for SSDI or concurrent SSDI and SSI benefits. We can also help you appeal a denial, strengthen your claim, prepare for a hearing, and explain your limitations in court.

About 70% of initial SSDI applications are denied but approved on appeal. 

Don’t give up. You don’t have to do this alone.

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Frequently Asked Questions About State Taxes on SSDI

Do I have to pay state taxes on SSDI if it’s my only income?

Usually, no. If SSDI is your only income, it’s not federally taxable unless you’re married filing separately and lived with your spouse during the year.

Do I need to file a state tax return if SSDI is my only income?

Maybe. Filing requirements are separate from whether SSDI is taxable. Check your state’s filing rules for the tax year you are filing.

Are state taxes automatically withheld from SSDI?

No. State tax withholding is not available through the Social Security Administration (SSA) for SSDI payments. The agency’s voluntary withholding program only applies to federal income tax, not state tax withholding. If your state charges state income tax on SSDI, check its tax instructions for how to pay any tax you owe. 

Does my spouse’s income affect whether my SSDI is taxed by the state?

It can. Some states use filing status, household income, or adjusted gross income when deciding whether an SSDI tax exemption or deduction applies 

Which tax form shows my SSDI income?

Form SSA-1099 shows the SSDI payments you received during the year and helps you report any taxable Social Security benefits. Use it when preparing your federal and state tax returns. You can get a copy of your Social Security benefit statement through your online Social Security account or by calling the SSA 

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