The 2026 earnings limits and benefit amounts Social Security announced
Social Security released its 2026 figures in October 2025. The earnings limit for people who claim before their full retirement age rose to $23,400 per year — meaning you can earn that much without losing benefits. The limit jumps to $62,160 in the months you reach full retirement age (benefits stop only on earnings above that until the month you turn full retirement age). The average monthly benefit for a retired worker is $1,907, though your actual payment depends on your work history and the age you claimed.
These numbers change every year because Social Security ties them to wage growth and inflation. The earnings limit increased because average wages rose in 2024. The benefit amounts increased because of the cost-of-living adjustment, or COLA, which Social Security announced separately. If you are already receiving benefits, you received the COLA increase automatically in your December 2025 payment.
Key Takeaways
- The 2026 earnings limit is $23,400 per year if you have not yet reached full retirement age, and $62,160 in the year you reach it.
- For every $2 you earn above the limit before full retirement age, Social Security withholds $1 in benefits.
- Once you reach full retirement age, you can earn any amount without losing benefits.
- Average monthly benefits for retired workers are $1,907 in 2026, but your payment is based on your own earnings record.
- These limits and amounts change yearly and are announced by Social Security in the fall.
How the earnings limit affects your benefits before full retirement age
If you claimed Social Security before your full retirement age and you work, the earnings limit matters. For 2026, you can earn up to $23,400 without any reduction to your benefits. Once you cross that threshold, Social Security withholds $1 in benefits for every $2 you earn above the limit.
The math works like this: if you earn $25,400 in 2026, you are $2,000 over the limit. Social Security withholds $1,000 from your benefits that year. The withholding happens automatically — you do not have to do anything. Social Security learns about your earnings from your tax return or from your employer's reports, and they adjust your payment accordingly.
This limit applies only in the years before you reach full retirement age. Once you hit that age, the limit disappears entirely. In the specific year you reach full retirement age, a different limit applies ($62,160) but only to earnings in the months before your birthday. After your full retirement age month, you earn without any limit.
The difference between the two earnings limits in your full retirement age year
The year you turn full retirement age, Social Security uses two different limits depending on which month you were born. From January through the month before you reach full retirement age, the $23,400 limit applies. Starting in the month you reach full retirement age, the $62,160 limit applies for the rest of that year.
This matters because the $62,160 limit has a gentler withholding rate. For earnings above $62,160 in that second part of the year, Social Security withholds $1 for every $3 you earn, not $1 for every $2. So if you turn 67 in June and earn $65,000 in the months June through December, only the $3,000 above $62,160 counts against you, and you lose $1,000 in benefits.
If you are self-employed, the earnings count in the year you earn them, not the year you receive payment. If you are an employee, earnings count in the year you earn them as well, regardless of when the paycheck arrives.
What counts as earnings and what does not
Earnings mean wages from a job or net profit from self-employment. Social Security counts W-2 wages, 1099 income, and business profits. They do not count pensions, investment income, rental income, interest, or annuities. They also do not count capital gains, even if you sell a house or stock at a profit.
Certain types of work income also do not count. If you work for a railroad, your railroad retirement benefits are separate and have their own earnings rules. If you are a minister or member of a religious order, some income may be excluded. If you work for a foreign government, that income does not count. For most people, though, any money you earn from working — whether as an employee or self-employed — counts toward the limit.
Volunteer work does not count as earnings, even if you receive a small stipend. Jury duty payments do not count. Royalties from a book or song you wrote years ago do not count unless you are still actively working in that field.
How to report your earnings to Social Security
You do not report your earnings directly to Social Security in most cases. If you are an employee, your employer reports your wages through payroll tax filings, and Social Security receives that information automatically. If you are self-employed, you report your net profit on your tax return, and Social Security accesses that information when they process your taxes.
If you think Social Security has incorrect information about your earnings, you can contact them to correct the record. Call 1-800-772-1213 or visit your local Social Security office. Bring your tax return or pay stubs as proof. Corrections are important because they affect not only your current benefits but also your future benefit amount if you have not yet reached full retirement age.
If your earnings change during the year — for example, if you lose a job or start a new one — you do not need to report it when ready. Social Security will learn about the change through tax records. However, if you think you will earn significantly less than you expected, you can contact Social Security to ask about a revised estimate, which may affect your withholding.
Why these numbers change every year
Social Security adjusts the earnings limit based on the average wage index, which measures how much American workers earned in the previous year. In 2024, average wages grew, so the 2026 limit rose from the 2025 limit of $23,400 to $23,400. The benefit amounts adjust based on the cost-of-living adjustment, which measures inflation.
The COLA for 2026 was announced in October 2025 along with these earnings limits. If you are already receiving benefits, you saw the increase in your December payment. If you have not claimed yet, the benefit amounts shown on your Social Security statement reflect the 2026 figures.
These adjustments happen automatically. You do not need to do anything to receive them. Social Security publishes the new figures every October for the following year, so you can plan ahead if you are working while receiving benefits.
What happens if you earn more than the limit
If you earn above the limit, your benefits are reduced, but you do not lose them entirely unless your earnings are very high. For every $2 you earn above $23,400 in 2026 (before full retirement age), Social Security withholds $1. This continues until your benefits reach zero, but the withholding does not carry over to the next year.
Once you reach full retirement age, the withholding stops completely. At that point, Social Security recalculates your benefit to account for the months you did not receive a payment due to earnings. You receive a higher monthly payment going forward to make up for those withheld months. This is called a "recomputation," and it happens automatically.
The key point: earning above the limit does not permanently reduce your benefits. It delays them. You eventually receive the full amount you are may have access to to, just spread over a longer period.
Frequently Asked Questions
Do I have to stop working when I claim Social Security?
No. You can work and receive Social Security at the same time. If you have not reached full retirement age, your benefits will be reduced if you earn above $23,400 in 2026, but you can still work. Once you reach full retirement age, you can earn any amount without losing benefits.
If Social Security withholds my benefits because I earned too much, do I get that money back?
Yes, but not as a lump sum. When you reach full retirement age, Social Security recalculates your benefit to account for the months you did not receive a payment. Your monthly benefit increases, and over time you receive the full amount you were may have access to to. The exact increase depends on how many months of benefits were withheld.
What if I am self-employed and my income varies month to month?
Social Security counts your net profit for the entire year, not month by month. If you have a good year and a bad year, only the year you exceed the limit matters. You can also contact Social Security if you expect your income to drop significantly, and they may adjust your estimate for withholding purposes.
Does my spouse's earnings affect my Social Security benefits?
No. The earnings limit applies only to the person who claimed benefits. Your spouse's earnings do not affect your benefits, and your earnings do not affect theirs. Each person's benefits are based on their own work record and earnings.
When do the 2027 earnings limits come out?
Social Security announces the following year's figures in October. So the 2027 limits and benefit amounts will be announced in October 2026. You can check the Social Security website or call 1-800-772-1213 to learn the new figures once they are released.