AARP North Dakota Executive Council

Did you know that more than 50,000 North Dakota retirees pay income taxes on their Social Security benefits? As AARP North Dakota volunteers, we are working to change that.

North Dakota is one of only three states that fully taxes Social Security benefits. That compares to 28 states that fully exempt Social Security benefits from income tax. Nine states have no income tax and 10 other states partially exempt Social Security.

The Social Security exemption levels of $25,000 for a single resident and $32,000 for married filing jointly have not been adjusted for inflation in nearly 35 years. If adjusted for inflation, these numbers would be closer to $63,000 and $111,000. In 1984, North Dakota’s median income was $21,000. That fell well below the threshold of $25,000, meaning a person making the median income would not have paid any tax on Social Security. In 2016, the state’s median income was $61,000, meaning retirees are paying taxes on their Social Security at some of the highest levels.

Higher healthcare, grocery and utilities costs make it difficult for older North Dakotans to live off of their Social Security income. The income tax on Social Security should be eliminated so retirees can live more financially secure. It’s a matter of fairness.

The North Dakota House of Representatives already passed a repeal of this unfair tax on older North Dakotans. It’s time the North Dakota Senate joins them. Contact your Senator and urge him or her to support House Bill 1174 and not let North Dakota tax Social Security any longer.

AARP North Dakota Executive Council: Kathi Schwan, West Fargo, President; RaeAnn Johnson, Grand Forks; Cindy Yale, Burlington; Ellen Schafer, Bismarck; Dianne Billey, Ellendale.