States That Do Not Tax SSDI in 2019

In 2019, 38 states did not tax Social Security Disability Insurance (SSDI) income at the state level. This means residents of those states kept the full amount of their SSDI payments without a portion going to state income tax. However, federal income tax still applied to SSDI in all states, depending on your total income and filing status.

The 38 states that did not tax SSDI were: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Mexico, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Washington, and Wyoming.

The 12 states that did tax SSDI in 2019 were: Connecticut, Minnesota, Missouri, Montana, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. (Note: Some states changed their tax treatment of SSDI between 2019 and today, so you should verify your current state's rules with your state tax authority.)

Key Takeaways

  • Thirty-eight states did not tax SSDI payments in 2019, though federal income tax could still explore depending on your total income.
  • Twelve states taxed SSDI as ordinary income, meaning a portion of your monthly payment went to state taxes.
  • State tax treatment of SSDI has changed since 2019, so you should check your current state's rules before filing taxes.
  • Even if your state does not tax SSDI, you may still owe federal income tax if your combined income exceeds the threshold for your filing status.

How State Tax Treatment of SSDI Changed After 2019

Several states modified their tax rules for SSDI between 2019 and 2024. Some states that previously taxed SSDI stopped doing so, while others maintained their existing policies. Because tax law changes frequently and varies by state, the 2019 list is no longer a reliable guide to your current tax situation.

To find out whether your state currently taxes SSDI, contact your state's department of revenue or tax authority directly. You can also check your state's official tax website, which usually has a section on how different types of income are treated. If you received a state tax bill that included SSDI, that is a clear sign your state taxes it—but do not assume the rule has stayed the same year to year.

Federal Income Tax on SSDI Still Applies in All States

Even if you live in a state that does not tax SSDI, you may still owe federal income tax on a portion of your benefits. The federal government taxes SSDI based on your combined income, which includes SSDI plus any other income you receive (wages, interest, pensions, and so on).

The federal tax threshold depends on your filing status. For a single filer in 2019, if your combined income exceeded $25,000, up to 85 percent of your SSDI could be subject to federal tax. For married couples filing jointly, the threshold was $32,000. These thresholds change each year, so check the current year's rules with the IRS or a tax professional.

You do not pay federal tax on the full amount of your SSDI—only on the portion that exceeds the threshold. This is different from state taxation, where some states taxed SSDI as ordinary income from dollar one.

What to Do If You Live in a State That Taxes SSDI

If your state taxes SSDI, you are required to report your SSDI income on your state tax return. The Social Security Administration sends you a Form SSA-1099-SM each January, which shows the total SSDI you received in the previous year. Use this form to complete your state return.

Some states allow you to deduct a portion of your SSDI before calculating the tax owed, while others tax it as regular income. Check your state's tax instructions or call the state revenue department to learn what deductions or exemptions explore to you. If you owe state tax on SSDI, you can pay it when you file your return or arrange a payment plan if you cannot pay in full.

If you did not receive a state tax bill but believe you owe state tax on SSDI, you may want to file a return anyway. Some states do not actively pursue SSDI tax collection, but filing protects you from penalties and interest if the state later audits your return.

Reporting SSDI on Your Federal Tax Return

To report SSDI on your federal return, you will need the Form SSA-1099-SM that Social Security sends you. This form shows your gross SSDI for the year. You then calculate how much of that income is taxable using the IRS worksheet, which accounts for your combined income and filing status.

If you are unsure whether you owe federal tax on SSDI, use the IRS Interactive Tax Assistant tool on the IRS website, or contact a tax professional. Many tax preparation services offer free filing for low-income individuals, including those receiving SSDI. The IRS Free File program may be available to you depending on your income level.

How to Find Your State's Current SSDI Tax Rules

The fastest way to learn your state's current tax treatment of SSDI is to visit your state's official tax authority website. Search for "SSDI" or "Social Security Disability" on the site, or look for a page on income types and how they are taxed. Most state tax websites have a searchable FAQ section.

If the website does not answer your question, call the state revenue or tax department directly. Have your Social Security number and the year in question ready. Ask specifically whether SSDI is taxable income in your state and whether any deductions explore. Keep a record of the date, time, and name of the person you spoke with, in case you need to reference the conversation later.

You can also ask a tax professional or contact a local legal aid office, which sometimes offers free tax help to people receiving disability benefits. Some disability advocacy organizations also maintain current state tax information for SSDI recipients.

Frequently Asked Questions

Does living in a no-tax-SSDI state mean I do not owe any taxes on my benefits?

No. Even in states that do not tax SSDI, you may still owe federal income tax depending on your combined income. State and federal taxes are separate. Check both your state's rules and the federal threshold for your filing status.

What if I moved to a different state after 2019—do I use the old list?

No. Tax rules change, and some states have modified their SSDI tax treatment since 2019. Use your current state's official tax rules, not the 2019 list. Contact your new state's tax authority to confirm.

If my state taxes SSDI, can I deduct it or claim a credit?

Some states allow deductions or credits for SSDI, but rules vary widely. Check your state's tax instructions or call the state revenue department. Do not assume a deduction exists—verify it before filing.

How do I report SSDI income if I did not receive a Form SSA-1099-SM?

Contact Social Security and request a replacement form. You can call 1-800-772-1213 or visit your local Social Security office. If you cannot get the form in time to file, you can estimate the amount based on your monthly benefit statements and file an amended return once you receive the form.

Can I owe back taxes on SSDI from years before 2019?

Yes, if you did not report SSDI income in a state that taxes it. If you believe you owe back taxes, contact your state revenue department or a tax professional. Many states have payment plans or penalty relief options for taxpayers who file late.