Social Security taxation depends on your other income, not the year

Whether you pay federal income tax on your Social Security benefits in 2026 depends on how much other income you have that year — not on any change happening in 2026. The tax rules themselves have not changed since 1984 and do not have an expiration date. The confusion often comes from the fact that the combined income threshold that triggers taxation has never been adjusted for inflation, so more people cross it each year as their pensions, investments, and earnings grow.

The IRS uses a formula called "combined income" to decide if your benefits are taxable. Combined income is your adjusted gross income plus nontaxable interest plus half your Social Security benefits. If that number exceeds a certain threshold, you owe federal income tax on a portion of your benefits. The thresholds are $25,000 for single filers and $32,000 for married couples filing jointly — the same thresholds that have been in place since 1984.

State taxes are separate. Some states do not tax Social Security at all. Others tax it the same way the federal government does. A few states tax it only if your income exceeds their own thresholds, which may be higher or lower than the federal ones. You will need to check your state's rules if you live in a state with an income tax.

Key Takeaways

  • Your Social Security benefits may be taxed in 2026 if your combined income — adjusted gross income plus nontaxable interest plus half your benefits — exceeds $25,000 (single) or $32,000 (married filing jointly).
  • These income thresholds have not changed since 1984 and have no expiration date, so the tax rules will work the same way in 2026 as they do now.
  • If you are taxed, you pay federal income tax on up to 85 percent of your benefits, depending on how far your combined income exceeds the threshold.
  • State taxation of Social Security varies by state; some states do not tax it at all, while others use federal thresholds or set their own.

How the combined income calculation works

To find out whether your benefits will be taxed, you need to calculate your combined income. Start with your adjusted gross income (AGI) — the number at the bottom of your tax return before you claim the standard or itemized deduction. Add any nontaxable interest you earned, such as interest from municipal bonds. Then add half of your Social Security benefits for the year.

If that total is below the threshold for your filing status, none of your benefits are taxable. If it exceeds the threshold, the IRS taxes either 50 percent or 85 percent of your benefits, depending on how far above the threshold you go. The exact percentage is determined by a two-tier formula: the first tier covers combined income between the base threshold and $9,000 above it (or $12,000 for married couples), and the second tier covers anything above that.

Example: A single filer with $30,000 in adjusted gross income, $500 in nontaxable interest, and $20,000 in Social Security benefits would have combined income of $30,500 + $500 + $10,000 = $41,000. Since $41,000 exceeds $25,000, some benefits are taxable. The amount over the threshold is $16,000. The first $9,000 of that excess means 50 percent of $9,000 ($4,500) is taxable. The remaining $7,000 means 85 percent of $7,000 ($5,950) is taxable. Total taxable benefits: $10,450.

Why the thresholds have not changed since 1984

Congress set the current thresholds when it began taxing Social Security benefits in 1984 as part of a broader effort to shore up the program's finances. At that time, the thresholds were designed to affect only higher-income beneficiaries. Because Congress has not adjusted them for inflation over the past 40 years, they now affect many middle-income retirees who would not have been affected when the rule began.

This is sometimes called "bracket creep" — the effect of fixed dollar amounts losing purchasing power over time. A person with $25,000 in income in 1984 was genuinely in a higher income bracket than someone with $25,000 today, because $25,000 bought much more in 1984. However, the tax rule has remained unchanged, so more beneficiaries cross the threshold each year.

There is no automatic adjustment mechanism for these thresholds, and no legislation has been passed to change them. This means the thresholds will remain $25,000 and $32,000 in 2026 unless Congress acts before then.

What counts as income for the combined income calculation

Your adjusted gross income includes wages, self-employment income, pensions, taxable interest, dividends, capital gains, and distributions from retirement accounts like IRAs and 401(k)s. It does not include certain items: municipal bond interest is excluded from AGI but is added back separately for the combined income calculation, as mentioned above.

Roth IRA withdrawals are not included in your AGI, but they do count toward combined income for Social Security taxation purposes. This is a key difference from traditional IRA withdrawals, which are included in AGI. If you are deciding between a Roth conversion and a traditional IRA withdrawal, the impact on your Social Security taxation is one factor to consider, though it is not the only one.

Certain income sources do not count at all: Supplemental Security Income (SSI), Temporary information for Needy Families (TANF), and some other need-based benefits are excluded. Veterans' benefits are also excluded. Railroad Retirement benefits are taxed under a different set of rules.

State taxation of Social Security in 2026

Thirteen states do not tax Social Security benefits at all: Alaska, Florida, Illinois, Iowa, Kansas, Louisiana, Maine, Mississippi, Missouri, Nevada, New Hampshire, South Dakota, Tennessee, and Wyoming. If you live in one of these states, you will not owe state income tax on your benefits regardless of your income level.

The remaining states that have an income tax tax Social Security benefits in one of three ways. Some states follow the federal rule exactly — they tax the same portion of benefits that the federal government taxes. Other states use their own thresholds, which may be higher or lower than the federal thresholds. A few states tax all Social Security benefits as ordinary income. Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, and Vermont have modified their rules in recent years, so it is worth checking your state's current rules if you live in one of these states.

You can find your state's specific rules through your state's department of revenue website or by contacting a tax professional in your state. The rules can change, and they sometimes have phase-in periods or special provisions for people over a certain age.

Planning for potential taxation of your benefits

If you know your combined income will exceed the threshold in 2026, you have several options to consider. One is to manage the timing of income: if you have control over when you take distributions from retirement accounts, when you realize capital gains, or when you receive other income, you might be able to spread it across multiple years to keep combined income below the threshold in some years.

Another option is to consider the source of your income. Roth IRA conversions, for example, increase your taxable income in the year of conversion but do not increase your combined income for Social Security purposes — they only count toward combined income if you withdraw from the Roth later. A traditional IRA withdrawal counts fully toward combined income. Depending on your situation, one strategy might result in less taxation of your benefits than another.

You can also adjust your federal income tax withholding if you expect to owe tax on your benefits. If you receive Social Security, you can elect to have taxes withheld from your benefit payments by completing Form W-4V and submitting it to the Social Security Administration. This does not change whether your benefits are taxable — it only changes when you pay the tax.

How to estimate your 2026 tax situation

To estimate whether your benefits will be taxed in 2026, gather your 2025 tax return and your most recent Social Security statement. Your statement shows your annual benefit amount. If your income sources are stable year to year, your 2025 combined income is a reasonable estimate for 2026.

If you expect significant changes — a pension starting, a large withdrawal from a retirement account, the sale of property, or a change in investment income — adjust your estimate accordingly. Remember that combined income includes half your Social Security benefits, so the threshold is not as low as it appears at first glance.

If you are unsure whether you will cross the threshold, or if you want to explore strategies to reduce taxation of your benefits, a tax professional or financial advisor can walk through the calculation with you using your specific numbers. The IRS also publishes Publication 915, which contains worksheets and examples.

Frequently Asked Questions

Can I reduce my combined income to avoid taxation of my benefits?

You can reduce your combined income by reducing the sources that count toward it: lower your adjusted gross income, reduce nontaxable interest, or lower your Social Security benefits (by delaying them, though this is a permanent change). Some strategies, like Roth conversions or charitable contributions, may help in specific situations. A tax professional can review your circumstances.

Does the taxation of Social Security benefits affect my Medicare premiums?

No. Medicare premiums are based on a different income calculation called "modified adjusted gross income" (MAGI), which is similar but not identical to combined income. Your Social Security taxation status does not directly affect your Medicare premiums, though the income that causes taxation of benefits may affect Medicare premiums.

If I am married filing separately, what is my threshold?

If you are married and file separate returns, the threshold is $0 — meaning any combined income at all may result in taxation of your benefits. This is a strong incentive to file jointly if you are married, unless you are legally separated or have other circumstances that prevent it.

What if I did not know my benefits were taxable and did not pay tax?

The IRS will send you a notice if you owe tax on benefits you did not pay. You can file an amended return (Form 1040-X) for prior years if you want to pay the tax voluntarily. If you receive a notice, respond to it promptly; the IRS can assess penalties and interest if the tax goes unpaid.

Will Congress change the income thresholds before 2026?

Congress has not changed the thresholds since 1984, and there is no legislation currently pending to change them. However, Congress could pass new legislation at any time. It is worth monitoring tax news if you are close to the threshold, but you should plan based on current rules.