Table 1
State Income Tax Treatment of Social Security Benefits and Pension Income, 1996

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		---------Amount of Exemptions---------
State	Is Social Security Tax Exempt?	Private Exemption	Military Exemption	Federal Exemption	State and Local Exemption	Age Minimum for Pension Exclusions?	Income Qualifying Restrictions for Pension Exclusions?
Alabama	Yes	None/Full	Full	Full	Full	No	No
Arizona	Yes	None	$2,500	$2,500	$2,500	No	No
Arkansas	Yes	$6,000	$6,000	$6,000	$6,000	No	No
California	Yes	None	None	None	None	N/A	N/A
Colorado	No	$20,000	$20,000	$20,000	$20,000	Yes	No
Connecticut	No	None	None	None	None	N/A	N/A
Delaware	Yes	$2,000/ $3,000	$2,000/ $3,000	$2,000/ $3,000	$2,000/ $3,000	No	Yes
District of Columbia	Yes	None	$3,000	$3,000	$3,000	Yes	No
Georgia	Yes	-------------------------- See endnote --------------------------				Yes	No
Hawaii	Yes	Full/Part	Full	Full	Full	No	No
Idaho	Yes	None	$14,976	$14,976	$14,976/ None	Yes	No
Illinois	Yes	Full	Full	Full	Full	No	No
Indiana	Yes	None	$2,000	$2,000	None	Yes	No
Iowa	No	$3,000	$3,000	$3,000	$3,000	Yes	No
Kansas	No	None	Full	Full	Full	No	No
Kentucky	Yes	See endnote	Full	Full	Full	No	No
Louisiana	Yes	$6,000	Full	Full	Full	Yes	No
Maine	Yes	None	None	None	None	N/A	N/A
Maryland	Yes	$14,400	$14,400	$14,400	$14,400	Yes	Yes
Massachusetts	Yes	None	None	Full	Full	No	No
Michigan	Yes	$31,920	Full	Full	Full	No	No
Minnesota	No	-------------------------- See endnote --------------------------				Yes	Yes
Mississippi	Yes	Full	Full	Full	Full	No	No
Missouri	No	None	$6,000	$6,000	$6,000	No	Yes
Montana	No	$3,600	$3,600	$3,600	$3,600	No	Yes
Nebraska	No	None	None	None	None	N/A	N/A
New Jersey	Yes	$7,500	$7,500	$7,500	$7,500	Yes	No
New Mexico	No	-------------------------- See endnote --------------------------				Yes	Yes
New York	Yes	$20,000	Full	Full	Full	Yes	No
North Carolina	Yes	$2,000	$4,000	$4,000	$4,000	No	No
North Dakota	No	None	$5,000	$5,000	$5,000/ None	Yes	No
Ohio	Yes	-------------------------- See endnote --------------------------
Oklahoma	Yes	None	$5,500	$5,500	$5,500	No	No
Oregon	Yes	-------------------------- See endnote --------------------------
Pennsylvania	Yes	Full	Full	Full	Full	Yes	No
Rhode Island	No	None	None	None	None	N/A	N/A
South Carolina	Yes	$3,000/ $10,000	$3,000/ $10,000	$3,000/ $10,000	$3,000/ $10,000	No	No
Utah	No	-------------------------- See endnote --------------------------				No	Yes
Vermont	No	None	None	None	None	N/A	N/A
Virginia	Yes	-------------------------- See endnote --------------------------				Yes	No
West Virginia	No	-------------------------- See endnote --------------------------
Wisconsin	No	None	None/Full	None/Full	None/Full	No	No

Note #1: N/A stands for not applicable.
Note #2: Seven states -- Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming -- are excluded because they have no personal income tax.
Note #3: Two states -- New Hampshire and Tennessee -- are excluded because they have limited income taxes.
Sources (for Table 1 and accompanying endnotes): State income tax forms and telephone survey of State Department of Revenue offices.

prepared by David Baer Public Policy Institute American Association of Retired Persons (Presented here with the permission of the AARP)