Social Security recipients will be happy to hear that most states do not tax benefits. Below are the 41 states (along with Washington, D.C.) that currently do not: Missouri, Nebraska, and Kansas are the newcomers to the list, having eliminated their tax in 2024.

Crucially, those already on a 10% withholding plan will not be affected by the new 100% withholding rate. However tax refund offsets could begin soon.

The Social Security Administration recently said it could save $800 million annually, but doing so will require a significant headcount reduction. The Social Security Administration is strengthening its identity proofing requirements,