85% of Social Security Can Be Taxed in 2026 — Cut Your Bill

Up to 85% of your Social Security can be taxed in 2026. Learn how combined income thresholds work and the legal moves to reduce what you owe.

April 10, 2026 by Sloane Avery Wren 5 min read

Up to 85 cents of every Social Security dollar you receive can be counted as taxable income — yet the income thresholds that trigger that tax have not been adjusted for inflation since 1993. That frozen bracket means millions of retirees who were never supposed to pay this tax now do. I’m Sloane Avery Wren, and I cover Social Security and retirement benefits. Here is exactly how the tax works in 2026, what the real numbers look like, and the legal moves that can shrink your bill.

Key Takeaway

Whether your Social Security benefits are taxed — and how much — depends on your combined income (adjusted gross income + nontaxable interest + half your Social Security). In 2026, individuals with combined income above $25,000 and couples above $32,000 owe tax on at least part of their benefits. Source: IRS Topic No. 423.

50%

of benefits taxable above $25,000 combined income (single filers)

85%

maximum share of benefits taxable above $34,000 combined income (single filers)

$24,480

2026 earnings limit before benefit withholding kicks in (under FRA)

$184,500

2026 wage base subject to Social Security payroll tax

Why Social Security Taxation Hits Harder Every Year — Even Without a Raise

Congress set the combined-income thresholds — $25,000 for singles, $32,000 for married couples — in 1984. They added the 85% tier in 1993. Neither threshold has moved since. Meanwhile, the annual cost-of-living adjustment (COLA) increases your benefit every year. That means more retirees drift over the line simply because their Social Security payment grew — not because they earned more money.

A retiree collecting $1,927/month — roughly what a one-bedroom apartment costs in Phoenix, according to HUD fair market rent data — receives about $23,124 per year in benefits. Add a modest pension or IRA withdrawal and that retiree can clear the $25,000 threshold with room to spare.

Any earned wages are also subject to withholding for income tax, Social Security tax, and Medicare tax even if you are already receiving Social Security benefits. Working in retirement does not get you a pass on payroll taxes.

How the IRS Calculates Your Taxable Benefits Step by Step

Find your Adjusted Gross Income (AGI).
This includes wages, pension income, IRA withdrawals, capital gains, and rental income. It does NOT include your Social Security yet.

Add nontaxable interest.
Municipal bond interest is tax-free federally — but it still counts here. Many investors use munis to lower taxes and are surprised this income counts against them.

Add half of your annual Social Security benefit.
If you receive $23,124/year, add $11,562. This is your provisional income, sometimes called combined income.

Compare to the thresholds.
Combined income below $25,000 (single) or $32,000 (married): zero benefits taxed. Between $25,000–$34,000 (single): up to 50% taxable. Above $34,000: up to 85% taxable.

Apply your ordinary income tax rate.
The taxable portion is added to your other income on Form 1040. It is taxed at your marginal rate — 10%, 12%, 22%, or higher. Source: IRS Topic 423.

The 2026 Numbers Every Recipient Needs to Know

Filing Status	0% Taxable (Threshold)	Up to 50% Taxable	Up to 85% Taxable
Single / MFS	Below $25,000	$25,000 – $34,000	Above $34,000
Married Filing Jointly	Below $32,000	$32,000 – $44,000	Above $44,000
Married Filing Separately	$0 — always taxed	—	Up to 85% immediately

These thresholds have never been adjusted for inflation since Congress set them in 1983 and 1993. Source: SSA.gov.

My Own 2026 Tax Calculation — A First-Person Example

I started collecting my retirement benefit in January 2024. My monthly check is $2,140. I also draw $18,000 per year from a traditional IRA. Here is exactly how my 2026 combined income (CI) calculation looks before I file my federal return.

Step 1 — Add up my income

Social Security: $25,680/yr
IRA withdrawals: $18,000/yr
Half of SS: $12,840
Combined income: $30,840

Which Types of Social Security Benefits Are Taxable?

Benefit Type	Federally Taxable?	Notes
Retirement (OASI)	Yes — up to 85%	Most common situation for readers over 62
Disability (SSDI)	Yes — up to 85%	Same CI formula applies to SSDI recipients
Survivor Benefits	Yes — up to 85%	Widows, widowers, and dependent children included
Spousal Benefits	Yes — up to 85%	Treated identically to the worker’s own benefit
SSI (Supplemental Security Income)	No — never taxable	SSI is a needs-based program, not an earned benefit

State Taxes on Social Security in 2026

Federal tax gets all the attention. But 9 states still taxed Social Security benefits as of January 2026. If you live in one of them, your bill could be significantly higher. Recent legislative changes have reduced this list from 13 states just two years ago.

Frequently Asked Questions

Q: What percentage of Social Security benefits can be taxed in 2026?

Up to 85 cents of every Social Security dollar you receive can be counted as taxable income. The exact percentage depends on your combined income level.

Q: What is ‘combined income’ for Social Security tax purposes?

Combined income equals your adjusted gross income plus nontaxable interest plus half of your Social Security benefits. This figure determines whether and how much of your benefits are taxable.

Q: At what income level do Social Security benefits become taxable in 2026?

Individuals with combined income above $25,000 and married couples above $32,000 owe tax on at least part of their benefits. These thresholds have not been adjusted for inflation since 1993.

Q: Why are more retirees paying Social Security taxes than originally intended?

The income thresholds that trigger Social Security taxation have been frozen since 1993 and never adjusted for inflation. This means millions of retirees who were never supposed to owe this tax now fall above the limits due to decades of wage and benefit growth.

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Sloane Avery Wren

Senior Benefits Writer covering Social Security, Medicare, and retirement policy. M.P.P. University of Michigan. Former CBPP researcher. NSSA Certified.