What are the exact AGI thresholds and subtraction amounts for Social Security taxation in each of the eight taxing states for 2026?
Executive summary
Eight states will continue to tax some Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont, but the way they carve out exemptions — AGI thresholds, age‑based subtractions, credits and partial exclusions — varies widely and the publicly aggregated reporting cites some state rules in detail while leaving other exact thresholds or subtraction amounts unspecified in these sources [1] [2]. This briefing lists what the reporting actually provides for each of the eight states and flags where the record is incomplete.
1. Colorado — full subtraction for many seniors, but age and income conditions apply
Colorado is reported to allow residents aged 65 and older to subtract the full amount of federally taxable Social Security benefits from Colorado taxable income in 2026; reporting also says some younger retirees (55–64) with AGI below specified limits may qualify for the full subtraction, but the aggregated sources do not publish the full numeric table for every filing status in the snippets provided here [3] [1].
2. Connecticut — partial taxation tied to an income threshold; up to 25% taxed above it
Connecticut’s rule is described as an income‑threshold approach: if a taxpayer’s AGI exceeds the Connecticut income threshold, no more than 25% of Social Security benefits will be subject to state tax under the state’s formula — the exact AGI cutoff values and phase‑in amounts are referenced in state guidance but are not spelled out in the snippets supplied in these reports [2] [4].
3. Minnesota — federal‑taxable benefits are included but state subtractions reduce liability for many
Minnesota taxes Social Security income that is federally taxable, but lawmakers have expanded state subtraction rules that reduce or eliminate tax for many retirees; reporting notes that higher‑income households may still pay some tax and that subtraction eligibility varies by filer and income, but the consolidated sources here do not list the precise AGI cutoffs or subtraction dollar amounts [2] [1].
4. Montana — small fixed subtraction for older taxpayers, other offsets repealed in recent years
Montana’s coverage in these reports highlights a narrow subtraction for older taxpayers — taxpayers 65 and over receive a $5,500 subtraction from federal taxable income in Montana for 2026 — and the pieces note that other senior‑specific deductions (for partial interest income, etc.) were repealed recently [2] [4].
5. New Mexico — technically taxes benefits but uses higher exemption thresholds so many pay nothing
New Mexico “technically” taxes Social Security benefits, yet the state provides relatively higher income thresholds to exempt benefits so many retirees wind up owing nothing; the reporting emphasizes the higher thresholds but does not specify the exact AGI breakpoints or subtraction amounts in the supplied excerpts [2] [4].
6. Rhode Island — listed among taxing states; reporting lacks subtraction/threshold detail
Rhode Island appears on the lists of states that continue to tax at least some Social Security benefits for 2026, but the provided reporting does not include the specific AGI thresholds, subtraction amounts or credit formulas for Rhode Island in the excerpts available here [1].
7. Utah — benefits taxed at the flat state rate but many qualify for a Social Security benefits credit tied to MAGI
Utah subjects federally taxable Social Security benefits to its flat 4.5% rate, but many retirees qualify for a nonrefundable Social Security Benefits Credit that can substantially reduce or eliminate state tax; the credit is computed using MAGI thresholds and phases down (reported as reduced by 2.5 cents per dollar over thresholds in one summary), but the exact MAGI cutoffs and credit dollar amounts are not fully enumerated in these snippets [5] [1].
8. Vermont — structured exemptions with explicit AGI bands for full and partial exclusion
Vermont’s treatment is the most numerically explicit in the supplied reporting: a full exemption of Social Security income applies for AGI below $50,000 (single) or $65,000 (married filing jointly) with partial exemptions applying up to $60,000 (single) or $75,000 (joint), and benefits become taxable above those partial‑exemption limits according to the cited summaries [3] [2].
Bottom line and limits of the record
The aggregated reporting consistently identifies the eight states above and provides some specific figures (Montana’s $5,500 senior subtraction and Vermont’s AGI bands, plus Colorado’s broad full‑subtraction rule for many seniors), but several sources summarize complex state worksheets and credits without reproducing every AGI threshold, subtraction dollar amount or phase‑out formula in the excerpts provided here — for exact per‑state tables and every filing‑status breakpoint taxpayers should consult the individual state revenue departments or the cited state guidance referenced in the summaries [1] [4] [2].