Whether your Social Security is taxed depends on your other income, not on the benefit amount alone

Social Security benefits may be taxable if your combined income exceeds certain thresholds set by the IRS. Combined income means your adjusted gross income plus nontaxable interest plus half your Social Security benefits. For 2026, if you file as single and your combined income is over $25,000, some of your benefits become taxable. If you file as married filing jointly, the threshold is $32,000. These dollar amounts do not change year to year — Congress set them in 1983 and has not adjusted them since.

The tax does not apply to all your benefits at once. The IRS uses a two-tier system: up to 50 percent of your benefits may be taxable in the first tier, and up to an additional 35 percent in the second tier, meaning a maximum of 85 percent of your benefits can be taxed in any year. How much actually gets taxed depends on how far your combined income exceeds the threshold.

Key Takeaways

  • Social Security becomes taxable only if your combined income (wages, pensions, interest, plus half your benefits) exceeds $25,000 for single filers or $32,000 for married couples filing jointly in 2026.
  • The thresholds have not changed since 1983, so more beneficiaries are affected now than when the rule began, even though the dollar amounts stay the same.
  • A maximum of 85 percent of your benefits can be taxed in any single year, even if your combined income is very high.
  • You do not owe tax on benefits automatically — you must report them on your tax return, and the IRS will calculate the taxable amount using a worksheet.
  • Some states do not tax Social Security at all, while others tax it under their own rules that differ from federal rules.

How the IRS calculates which benefits are taxable

The calculation uses a two-step formula. First, the IRS takes your combined income and subtracts the threshold that applies to your filing status. If the result is $0 or less, none of your benefits are taxable. If it is more than $0, you move to the second step.

In the first tier, the IRS taxes the lesser of two amounts: either 50 percent of the amount your combined income exceeds the threshold, or 50 percent of your total Social Security benefits for the year. Whichever is smaller becomes your taxable amount at this stage. If your combined income exceeds the threshold by a large amount, a second tier kicks in: the IRS taxes 85 percent of the excess above a second, higher threshold ($34,000 for single filers, $44,000 for married couples filing jointly in 2026). The total taxable amount is capped at 85 percent of your benefits.

You do not calculate this yourself. When you file your tax return, you report your Social Security benefits on Form SSA-1099 (which Social Security mails to you each January), and the IRS applies the worksheet in the tax instructions to determine the taxable portion.

Why these thresholds have not changed since 1983

Congress created the Social Security taxation rule in 1983 as part of a compromise to shore up the program's finances. The thresholds were set at $25,000 for single filers and $32,000 for married couples filing jointly. At that time, these amounts were high enough that only about 10 percent of beneficiaries would owe tax on their benefits.

Unlike tax brackets for income tax, which adjust annually for inflation, the Social Security thresholds are fixed by law and Congress has not voted to change them. As a result, inflation has eroded the thresholds' value over four decades. Today, far more beneficiaries are affected — the Government Accountability Office estimated that by 2030, roughly 50 percent of beneficiaries will have taxable benefits, compared to 10 percent in 1984. This is sometimes called "bracket creep," though it applies to Social Security thresholds rather than income tax brackets.

State taxes on Social Security benefits

Thirteen states tax Social Security benefits under their own rules, which often differ from federal rules. Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia all tax some or all Social Security income. Illinois taxes benefits but exempts them for residents over 61. The rules vary widely: some states use the same federal thresholds, others use different ones, and some tax benefits only if your total income exceeds a much higher level.

If you live in one of these states, you may owe state tax on benefits even if the federal IRS does not tax them, or vice versa. You should check your state's tax agency website or speak with a tax preparer who knows your state's rules, because the calculation is separate from the federal one and the thresholds are not the same.

What to do if your benefits become taxable

If you know your combined income will exceed the threshold, you can ask Social Security to withhold federal income tax from your benefits. You do this by completing Form W-4V and submitting it to Social Security. You can choose to have 7, 10, 12, or 22 percent of your monthly benefit withheld, or you can request a specific dollar amount. This does not reduce the amount of tax you owe — it simply spreads the payment across the year instead of paying it all when you file your return.

Withholding is optional. Some people prefer to withhold and reduce their tax bill throughout the year. Others prefer to pay the full amount when they file their return. Either way, you must report your Social Security benefits on your tax return if your combined income exceeds the threshold, even if you had taxes withheld.

Combined income and what counts toward it

Combined income has a specific meaning for Social Security taxation purposes. It includes your adjusted gross income (wages, self-employment income, taxable pensions, taxable interest, capital gains, and other income reported on your tax return), plus any nontaxable interest (such as interest from municipal bonds), plus half of your Social Security benefits for the year.

Some types of income do not count toward combined income. Supplemental Security Income (SSI) does not count. Veterans' benefits do not count. Certain railroad retirement benefits do not count. If you are unsure whether a particular income source counts, check the IRS worksheet that comes with the tax instructions for Form 1040, or ask a tax preparer.

Planning ahead if you are still working

If you are receiving Social Security and still working, your wages count toward combined income and may push you over the threshold. Some people delay claiming benefits until they stop working, or they claim at a reduced rate and plan to increase it later. Others claim benefits while working and accept that some will be taxable. There is no single right answer — it depends on your situation, your life expectancy, and your other sources of income.

If you are thinking about claiming Social Security soon and you are still earning wages, it can help to estimate your combined income for the year and see whether you will cross the threshold. Social Security's website has a benefits calculator, and the IRS worksheet (available free on IRS.gov) shows exactly how the taxable amount is computed once you know your combined income.

Frequently Asked Questions

Can I avoid paying tax on my Social Security by keeping my income low?

Yes, if your combined income stays below the threshold for your filing status, none of your benefits are taxable. Combined income includes half your Social Security benefits, so the threshold is not as low as it sounds. For single filers, you would need combined income under $25,000 in 2026. For married couples filing jointly, under $32,000. If you are close to the threshold, even small changes in income (like delaying a pension payment or timing a charitable donation) can matter.

If I have taxes withheld from my Social Security, do I still have to file a tax return?

Not necessarily. You must file a return if your gross income exceeds the filing threshold for your age and filing status, which is separate from the Social Security taxation threshold. If your only income is Social Security and you have taxes withheld, you may not be required to file. However, if you have other income (wages, pensions, interest), you probably must file. Check the IRS filing requirements on IRS.gov or ask a tax preparer.

What if I disagree with the taxable amount the IRS calculated?

Double-check the IRS worksheet using your actual numbers. If you believe there is an error, you can file an amended return (Form 1040-X) within three years of the original filing date. If the error is on the Social Security Administration's side — for example, the Form SSA-1099 shows the wrong benefit amount — contact Social Security directly to request a corrected form.

Do I have to pay tax on Social Security if I live outside the United States?

Yes, U.S. citizens and resident aliens must report Social Security benefits on their federal tax return regardless of where they live, and the same taxation rules apply. Some countries have tax treaties with the United States that may affect how benefits are taxed, so if you live abroad, consult a tax professional who understands both U.S. and your country's tax law.

Will the thresholds ever increase?

Only if Congress votes to change the law. There is no automatic adjustment for inflation. Some proposals have suggested indexing the thresholds to inflation or raising them outright, but as of 2026, they remain at the 1983 levels. If you want to see the thresholds adjusted, you can contact your representatives in Congress.