By: Sahil Luthra
The part of a person’s benefits that can be taxed varies, depending on their combined income, non-taxable interest, and half of their Social Security benefits) and filing status.
Social Security income in state will be taxed at the flat rate of 4.55%, between the ages of 55 to 64, retirees may deduct up to $20,000 in retirement income.
In Connecticut, Social Security income tax rate varies from 3% to 6.99%. Retirees can deduct most or all their benefit income, depending on their AGI and filing status.
Social Security benefits are taxed ranging from 3.1% to 5.7%. Regardless of their filing status, retirees with an AGI of up to $75,000 are exempt from paying state taxes on their Social Security income.
In Minnesota, Social Security income tax varies between 5.35% and 9.85%. Single filers and couples filing jointly with incomes above $83,360 and $106,720, respectively, are not eligible for any exemption.
Social Security income tax rate can vary between 0% and 5.4%. Those who are of age 62 and older with income of less than $85,000, can fully deduct their Social Security benefits.
For 2021, the Social Security income tax rate ranges from 1% to 6.9%, while starting in 2022, the top marginal tax rate is lowered to 6.75%.
In Nebraska, the Social Security income tax rate varies from 2.46% to 6.84%. Starting from 2021, Nebraska is phasing out taxation of benefits under a new state law.
In New Mexico, the Social Security income tax rate ranges from 1.7% to 5.9%. However, citizens of age 65 and older with income of up to $28,500, may deduct up to $8,000 in income, which includes Social Security payments
In Rhode Island, the Social Security income tax ranges from 3.75% to 5.99%. Also, the state does not tax benefits of retirees who are of full retirement age and earn an AGI of less than $86,350.
Utah taxes the Social Security income at a flat rate of 4.95%. The state offers a partial or full credit on taxable benefits, as of 2021.
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