Updated September 5, 2026. Quick answer: No. Indiana deducts all Social Security and railroad retirement benefits from state taxable income.
The state’s income tax schedule: the Indiana tax brackets for 2026.
Confidence note: high. This page is scoped to Social Security taxation specifically. For the state’s full retirement-tax picture (pensions, tax rates, estate and probate), see how Indiana taxes retirement income generally.
How Indiana taxes Social Security benefits
| State personal income tax | Yes |
|---|---|
| Social Security treatment | Not taxed |
| How it works | The Indiana Dept. of Revenue states directly that “Indiana does not tax Social Security and railroad retirement benefits” and that any such benefits included in federal taxable income should be deducted on the Indiana return. |
| Income threshold / phase-out | No income threshold or age test; full exemption at every income level. |
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How our partner relationships workFigures verified against the Indiana Department of Revenue Individual Deductions page on September 29, 2026; the statute text of Ind. Code § 6-3-1-3.5 was not re-checked.
Statute and sources
Governing citation: Ind. Code § 6-3-1-3.5(a)(8) (per Indiana DOR guidance).
Read September 5, 2026.
Related: how Indiana taxes retirement income generally · does Indiana tax Roth conversions? · Roth conversion taxes, all 51 jurisdictions.
General information drawn from each state’s own published statutes and revenue-department guidance, not legal, tax or financial advice. Figures and exemption amounts are current as of the date in the quick answer, are set by state law, and can change by future legislation; any pending bill named on this page is not yet law. This page cannot see your own return, which governs. We are not a law firm, a tax adviser, or a fiduciary, and this is not personalized advice.