Whether your Social Security is taxed depends on your other income, not on a blanket rule

Social Security benefits themselves are never taxed by the federal government. What gets taxed is your combined income — the sum of your wages, pensions, interest, dividends, and a portion of your Social Security benefits. If your combined income stays below a certain threshold, you owe no federal tax on any of it, including Social Security. If it crosses that threshold, you may owe tax on up to 85 percent of your benefits.

The thresholds that determine this have not changed since 1984. For 2026, they remain: $25,000 for single filers and $32,000 for married couples filing jointly. These numbers do not adjust for inflation. Because wages and other income sources do rise with inflation, more people cross these thresholds each year, even if their actual purchasing power has not increased.

No law passed in 2026 removes taxation of Social Security. The thresholds stay the same. However, Congress has proposed bills in past years to raise or eliminate these thresholds, and such proposals may resurface. This guide explains how the current system works and what income counts toward the threshold.

Key Takeaways

  • Social Security benefits are not taxed unless your combined income (wages, pensions, interest, and a portion of benefits) exceeds $25,000 (single) or $32,000 (married filing jointly).
  • Combined income is calculated by adding your adjusted gross income, tax-exempt interest, and one half of your Social Security benefits.
  • If you cross the threshold, you may owe federal income tax on up to 85 percent of your benefits, not on all of them.
  • The income thresholds have remained unchanged since 1984 and do not adjust annually for inflation.
  • Some states tax Social Security benefits independently of federal rules; your state's rules depend on where you live and file taxes.

How combined income is calculated

The IRS uses a specific formula to determine whether you owe tax on Social Security. Start with your adjusted gross income (AGI) — the number on line 11 of your Form 1040. Add to that any tax-exempt interest you received (usually from municipal bonds). Then add one half of your Social Security benefits for the year.

That sum is your combined income. If it is $25,000 or less (single filer) or $32,000 or less (married filing jointly), you owe no federal tax on your Social Security. If it exceeds those amounts, the IRS taxes a portion of your benefits using a two-tier system: the first tier taxes up to 50 percent of benefits, and the second tier taxes up to an additional 35 percent, for a maximum of 85 percent.

Example: A single person has $20,000 in pension income and $18,000 in Social Security. Combined income is $20,000 + (½ × $18,000) = $29,000. This exceeds the $25,000 threshold by $4,000. Using the IRS formula, approximately $2,000 of the Social Security benefits becomes taxable income. The person owes federal income tax on that $2,000, not on the full $18,000 in benefits.

What income counts toward the threshold

Adjusted gross income includes wages, self-employment income, taxable pensions, taxable IRA distributions, and taxable annuities. It also includes capital gains and rental income. Certain types of income do not count: Supplemental Security Income (SSI) does not count, and neither do Veterans benefits or workers' compensation.

Tax-exempt interest — primarily from municipal bonds — counts toward the threshold even though it is not taxed itself. This is one of the few places where tax-exempt income affects your tax bill. Nontaxable portions of pensions (such as a return of your own contributions) do not count.

If you are married filing jointly, both spouses' income counts. If you are married filing separately, the threshold drops to $0 — meaning almost any Social Security is taxable. This is why married couples almost always file jointly when one or both receive Social Security.

The two-tier tax structure for Social Security

If your combined income exceeds the threshold, the IRS does not tax all of your benefits. Instead, it uses two tiers. The first tier taxes up to 50 percent of your benefits. The second tier taxes up to an additional 35 percent of your benefits. Together, no more than 85 percent of your benefits can be taxed in any year.

Tier one applies to the amount by which your combined income exceeds the base threshold ($25,000 or $32,000). You pay tax on the lesser of: (a) 50 percent of your benefits, or (b) 50 percent of the amount over the threshold. Tier two applies if your combined income exceeds a second threshold: $34,000 (single) or $44,000 (married filing jointly). You pay tax on the lesser of: (a) 85 percent of your benefits, or (b) 85 percent of the amount over the second threshold, minus any amount already taxed under tier one.

This structure means that even high-income retirees do not pay income tax on their entire Social Security benefit. Someone with $100,000 in other income and $30,000 in Social Security will owe tax on a portion of the $30,000, but not on all of it.

State taxation of Social Security

Thirteen states tax Social Security benefits to some degree: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Each state uses its own rules, which differ from the federal system. Some states exempt benefits below a certain income level. Others tax all benefits. A few allow a deduction or credit.

If you live in one of these states, you may owe state income tax on your Social Security even if you owe no federal tax. You will need to check your state's tax forms and instructions, or contact your state revenue department. If you live in a state with no income tax (such as Florida, Texas, or Wyoming), you owe no state tax on Social Security.

If you moved to a new state after retiring, check whether your new state taxes Social Security. Some people relocate specifically to avoid state taxation of benefits.

How to report Social Security on your tax return

Social Security benefits appear on Form SSA-1099, which you receive by January 31 each year. The form shows the total benefits you received in the prior year. You report this amount on line 5a of Form 1040. On line 5b, you report the taxable portion (if any), which you calculate using the IRS worksheet in the Form 1040 instructions or using IRS Publication 915.

If you use tax software, the program will walk you through the calculation. If you file by hand or with a tax preparer, Publication 915 contains the detailed worksheets. The calculation is mechanical but requires care — errors here can trigger an audit notice.

If you did not receive a Form SSA-1099 by early February, contact the Social Security Administration at 1-800-772-1213 or visit ssa.gov. Do not estimate the amount; the IRS matches your reported benefits against Social Security's records.

Why the thresholds have not changed since 1984

Congress set the current thresholds in the Social Security Amendments of 1983. At that time, $25,000 and $32,000 were considered high income for retirees. The law did not include automatic inflation adjustments. As a result, the thresholds have remained frozen for over 40 years while wages, pensions, and other income sources have risen with inflation.

This means that each year, more middle-income retirees cross the threshold and begin owing tax on their benefits, even if their actual standard of living has not changed. A couple with a $50,000 pension and $20,000 in Social Security would have been well above the threshold in 1984, but today they are closer to the middle of the income distribution.

Several bills have been introduced in Congress to raise or eliminate the thresholds, but none have passed. Some proposals would index the thresholds to inflation going forward. Others would eliminate taxation of Social Security entirely. Until such a bill becomes law, the 1984 thresholds remain in effect.

Frequently Asked Questions

Will Social Security be taxed in 2026?

Only if your combined income exceeds $25,000 (single) or $32,000 (married filing jointly). The thresholds do not change in 2026. If you are below the threshold, none of your Social Security is taxed federally. If you are above it, a portion may be taxed.

Does working part-time in retirement push me over the threshold?

Yes. Wages count as adjusted gross income and go directly into the combined income calculation. Even $10,000 in part-time wages can push a couple with $25,000 in Social Security over the $32,000 threshold. Plan for this when deciding whether to work.

What if I have a large capital gain in one year?

Capital gains count toward combined income. A one-time gain from selling a house or stock can push you over the threshold in that year only. You may owe tax on Social Security that year but not in other years. Consider timing large sales to spread gains across years if possible.

Can I reduce my combined income to avoid taxation?

You can reduce adjusted gross income by contributing to a traditional IRA (if you are not covered by a workplace retirement plan) or by taking certain deductions. However, tax-exempt interest still counts, so municipal bonds do not help. The most direct way to reduce combined income is to delay claiming Social Security if you have not yet started.

Do I have to file a tax return if my only income is Social Security?

Not if your combined income is below the threshold and you have no other filing requirement. However, if you have other income (wages, pensions, interest), you may need to file even if you owe no tax on Social Security. Check the IRS filing requirements based on your age and income type.