9 States That Tax Social Security Benefits

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#7 Montana

Taking after the federal government, Montana only taxes some of the people who are eligible to receive social security benefits. This means that if you are single and you earn benefits less than $25,000, you will not be taxed on that income. If you are filing your taxes as a couple with your spouse, you will not be taxed for the benefit income up to $32,000.

Residents of Montana that have an income over these thresholds will end up being taxed for the extra amount, but not in the same way that the federal government does it. They have a special state tax form where you have to calculate the difference with the worksheet they have provided. After completing it, your income can be taxed from 1% to 6.9%.

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27 Responses

  1. It’s past time that the government unconditionally eliminates Federal Tax on seniors Social Security benefits.

    Surviving spouse should be able to retain their Social Security benefits and their deceased spouse Social Security benefits. It’s absolutely cruel that the surviving spouse loses something close to 50% of their income when a spouse dies.

    An additional 15% increase to Social Security income in addition to the COLA to make up for the shortfalls in the COLA over the past 4 decades.

  2. As it is we don’t make much please don’t tax the poor to the grave if you make a little more than social security !

  3. I was taxed when I was working and now they are taxing me again. I live in West Virginia and I am taxed double!.

  4. It would be nice if they reduced the property tax by at least 50 % when you reach 65 YO. Then NO property tax when you reach 70 YO.
    We have worked our butts off for all those years and we earned that tax break and we are being replaced on a daily basis so there is no shortage of tax dollars for the city, state to squander on useless stuff. Since the days of the three pointed hats Govts have learned they can tax anything they want when they want and we pay it.

  5. I live in a state that’s as bad as sink hole maybe worse a state this 94 year old has seen it go from a beautiful poppy growing state to a dirty old out house. Hope you young one know what I mean its a little house out back because we did not have a bathroom in doors. People that run this state that was elected I believe the only good they’re good at is when they eat their lunch. Our taxes are the highest our gas tax last I heard is 52 cents a gallon and states income tax 13 percent city tax 9 percent water bill tax it you add all the. Taxes if I spend 1 dollar I may have 20 cents for my self. If you plan to move here think twice unless you enjoy miseries.

  6. Unfortunately, we live in California they tax everything, Social Security, Permanent Didability

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