Is Social Security taxable? For many retirees, part of it is. Up to 85% of your benefits can count as taxable income on your federal return, depending on what else you earn. Eight states tax Social Security too.
Whether you owe depends on your other income, your state, and whether you’re still working before full retirement age.
How Is Social Security Taxed by the Federal Government?
The IRS taxes up to 85% of your Social Security benefits, depending on your combined income. Combined income is your adjusted gross income, plus tax-exempt interest, plus half of your Social Security benefits. The higher that total, the larger the share of your benefit that gets taxed.
| Filing status | None taxable | Up to 50% taxable | Up to 85% taxable |
|---|---|---|---|
| Single | Combined income under $25,000 | $25,000 to $34,000 | Over $34,000 |
| Married filing jointly | Combined income under $32,000 | $32,000 to $44,000 | Over $44,000 |
Source: IRS Publication 915.
Those percentages are the share of your benefit that counts as taxable income. You then pay your regular tax rate on that share. In 2026, for example, the 24% bracket covers married couples with taxable income from $211,401 to $403,550.
Here’s how it plays out. Say you’re single, with $30,000 a year in Social Security and $20,000 from an IRA. Your combined income is $35,000, which is $20,000 plus half of your benefits. That puts you just over the $34,000 line, and about $5,350 of your $30,000 in benefits becomes taxable.
These thresholds have never been adjusted for inflation. Each year’s cost-of-living adjustment raises benefits, so more retirees cross them every year.
Does the Senior Deduction Lower Taxes on Social Security?
The senior deduction can offset some of the tax on your benefits if you’re 65 or older. From 2025 through 2028, you can deduct up to $6,000, or $12,000 for a married couple if you both qualify. It phases out above $75,000 of modified adjusted gross income ($150,000 for couples). You can claim it whether or not you itemize.
Which States Tax Social Security?
Eight states tax Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Each uses its own formula, with deductions, credits, or income limits that exempt many retirees. West Virginia finished phasing out its tax on benefits in 2026.
The other 42 states and Washington, D.C., don’t tax Social Security benefits: Alabama, Alaska, Arizona, Arkansas, California, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, Nebraska, Nevada, New Hampshire, New Jersey, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
If you’re thinking about moving in retirement, check how your new state handles pensions and IRA withdrawals too. Some states that skip Social Security still tax other retirement income.
How Does Working Affect Your Social Security Before Full Retirement Age?
If you collect Social Security before full retirement age and keep working, the Social Security earnings test can hold back part of your benefit. Full retirement age is 67 for anyone born in 1960 or later.
- If you’re under full retirement age all year, Social Security withholds $1 for every $2 you earn above the limit. The limit is $24,480 in 2026 and $25,560 in 2027.
- In the year you reach full retirement age, the limit is higher: $65,160 in 2026 and $67,920 in 2027. Social Security withholds $1 for every $3 above it, counting only what you earn before that month.
You get the withheld money back over time. At full retirement age, Social Security raises your monthly payment to credit you for the months it held back. From then on, you can earn any amount without a reduction, though your benefits can still be taxed.
As long as you work, you also pay the 6.2% Social Security payroll tax on your wages. It applies to earnings up to $184,500 in 2026 and $192,300 in 2027. Self-employed workers pay 12.4% on net earnings up to the same cap.
Source: Social Security Administration, 2027 COLA fact sheet.
How to Lower Taxes on Your Social Security
The surest way to lower taxes on Social Security is to keep your combined income under the IRS thresholds. A few moves help.
Draw From Roth Accounts in High-Income Years
Qualified withdrawals from a Roth IRA don’t count toward combined income. Spending Roth money in years when your other income is high keeps more of your benefit untaxed.
Convert to Roth Before You Claim
Roth conversions add to your taxable income in the year you convert. Doing them in the years between retiring and claiming, when your income is lower, shrinks your tax-deferred balance. That leaves less money to raise your combined income later. It also reduces your future required minimum distributions, which start at 73 or 75.
Give Through Qualified Charitable Distributions
Once you’re 70½, a qualified charitable distribution sends money from your IRA straight to a charity. It counts toward your RMD and stays out of your adjusted gross income, which keeps your combined income lower.
Delay Social Security and Draw Down Savings First
Living on IRA withdrawals while you wait to claim can lower the taxes on your benefits later. Your IRA balance shrinks before RMDs begin, and your eventual benefit is larger and grows with every year you wait.
Plan Your Retirement Taxes in the Boldin Planner
The Boldin Planner builds a tax forecast for every year of your retirement. It estimates your federal tax under current IRS rules and your state tax under each state’s own rules. It also projects the taxable share of your Social Security each year, plus your RMDs and any earnings-test reductions.
You can test a Roth conversion, a state move, or a new withdrawal order. You’ll see how each one changes your lifetime taxes in retirement.
FAQs: Social Security and Taxes
Is Social Security taxable at the federal level?
Social Security can be taxed at the federal level, depending on your combined income. Single filers with combined income above $25,000 and married couples above $32,000 pay income tax on part of their benefits. No more than 85% of a benefit can ever count as taxable income.
What income counts toward Social Security taxes?
The IRS uses combined income to decide how much of your Social Security is taxable. That’s your adjusted gross income, plus tax-exempt interest such as municipal bond interest, plus half of your benefits. Wages, pensions, IRA withdrawals, and capital gains all add to it.
Do you pay taxes on Social Security after age 70?
The same combined income thresholds apply to Social Security at every age, including after 70. What often changes in your 70s is your other income. Required minimum distributions begin at 73 or 75, and they can push more of your benefit into taxable territory.
Which states tax Social Security in 2026?
Eight states tax Social Security benefits in 2026: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Most of them exempt retirees below set income levels or offer credits that reduce the tax. The other 42 states and Washington, D.C., don’t tax benefits at all.
Can you avoid paying taxes on Social Security?
You can lower or avoid federal tax on Social Security by keeping your combined income under the IRS thresholds. Qualified Roth withdrawals and qualified charitable distributions from an IRA don’t count toward combined income. Roth conversions done before you claim can also shrink the taxable share of your benefit later.
