A Critical Reminder: Federal Taxes Still Apply

Even if you move to a state that does not tax Social Security, federal taxation may still apply.

Up to 85% of Social Security benefits can be taxable federally depending on your combined income. That calculation includes:

• Adjusted gross income

• Nontaxable interest

• Half of Social Security benefits

State relocation decisions do not eliminate federal obligations.

Why Income Thresholds Matter More Than Headlines

Many articles oversimplify by stating that a state “taxes Social Security.” In reality, most of these nine states protect lower-income retirees.

Tax exposure often depends on:

• Filing status

• Total retirement income

• Investment gains

• Pension withdrawals

A retiree living solely on Social Security may owe little or nothing, even in a state that technically taxes benefits.

Understanding the full income picture is far more important than reacting to headlines.