The nice thing is I don’t receive any taxi le income now.
Some states do tax on retirement and social security. You won't want to establish a residence in one of them.
12 States Impose Income Tax on Social Security Income
The below 12 states tax Social Security benefits to varying degrees.
Colorado
Colorado's pension-subtraction system exempts up to $24,000 in pension and annuity income, including some Social Security benefits. The
exemption is based on your age, starting at age 55.1
Connecticut
Connecticut partially or fully exempts Social Security benefits, based on a person's filing status and income.2
Kansas
Kansas exempts Social Security benefits from state tax, based on the taxpayer's income. Your Social Security benefits are exempt from Kansas income tax if your federal adjusted gross income (AGI) is $75,000 or less, regardless of your filing status.3
Minnesota
Minnesota partially taxes Social Security benefits. The state allows a subtraction from benefits ranging from $2,645 for married taxpayers who file separately, to $4,130 for single taxpayers, to $5,290 for married taxpayers who file jointly. The rule is subject to phaseouts starting at incomes of $80,270 for joint married filers, $40,135 for married taxpayers filing separately, and $62,710 for heads of household and single filers. The subtraction is less for these incomes and eventually phases out entirely as you earn more.4
Missouri
Missouri exempts Social Security benefits from state tax, provided that the individual is age 62 or older and has
adjusted gross income of less than $100,000 if married and filing jointly, or $85,000 for all other filing statuses. Those who earn more than that might qualify for the exemption if they're disabled.5
Montana
Montana asks residents to use the Montana Individual Income Tax Return to determine the portion of Social Security benefits that's taxable by the state (page 5 and page 6). That might be different from the federal amount.6
Nebraska
Nebraska allows a deduction for Social Security income that's included in your federal adjusted gross income if your federal AGI is less than or equal to $59,960 for married couples filing jointly, or $44,460 for all other filers.7
New Mexico
New Mexico follows the federal rules for including a portion of Social Security benefits as part of taxable income, but the state provides an $8,000 tax credit to eligible taxpayers age 65 or older to offset the tax on income, including income from Social Security benefits.8
North Dakota used to tax income from Social Security benefits, but in November 2021, the governor signed Senate Bill 2351, which exempts Social Security benefits from state income tax, making North Dakota the 38th state.9
Rhode Island
Rhode Island has an exemption on Social Security taxation for those who have reached
full retirement age as defined by the IRS. Eligible taxpayers must have federal AGIs of $88,950 if single, or $111,200 if married and filing jointly, for the 2021 tax year, the return you file in 2022.10
Utah
In late 2019, Utah adopted a sweeping tax bill that includes a
tax credit for Social Security benefits that are included in a taxpayer's federal adjusted gross income.11
Vermont
Vermont previously followed the federal rules for determining the taxable portion of Social Security benefits, and then it adopted exemptions for taxpayers with incomes below $25,000 for single filers and $32,000 for other statuses. Benefits for those with higher incomes are taxed at incremental levels, with no exemption available for AGIs of over $55,000 if single or over $70,000 if you're married and file jointly.12
West Virginia
West Virginia follows federal rules for determining the taxable portion of Social Security benefits. Legislation passed in 2019 will eliminate state taxes on these benefits by 2022.13 Until it's phased out at the end of 2022, you can exclude 65% of Social Security benefits on your 2021 tax return.14