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AARP AARP States Vermont Advocacy

Social Security and Tax Relief

Social security card and American money dollar bills close up concept

AARP Vermont is urging legislators to take action in 2018 to reduce state income taxes on Social Security benefits.

The Green Mountain State is one of four states that tax Social Security at the same income levels as the federal government does. Individuals with annual income of more than $25,000 and couples with more than $32,000 face state taxes on their benefits. Those thresholds have not increased in nearly 30 years, despite inflation.

About 145,000 Vermonters receive Social Security. Vermonters paid almost $30 million in state taxes on their benefits in 2013, according to the Vermont Legislative Joint Fiscal Office. The tax burden on Vermont beneficiaries is higher than in any other New England state.

To talk to state senators and representatives about this issue, call the legislative contact line at 800-322-5616.

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