Social Security benefits feel like they should be tax-free — you paid in your whole career. But depending on your other income, the IRS can tax up to 85% of your benefits. The good news: a clear formula decides it, and many retirees owe nothing. Here's how 2026 works.
The key number: 'combined income'
Whether your benefits are taxed depends on a figure the IRS calls combined income (sometimes "provisional income"):
Note that it includes half of your benefits plus all your other income — wages, pension, IRA and 401(k) withdrawals, dividends, and even normally tax-free muni-bond interest. That total is compared to fixed thresholds.
The 2026 thresholds
| Filing status | None taxable | Up to 50% taxable | Up to 85% taxable |
|---|---|---|---|
| Single / HoH | Below $25,000 | $25,000 – $34,000 | Above $34,000 |
| Married filing jointly | Below $32,000 | $32,000 – $44,000 | Above $44,000 |
"Up to 85% taxable" does not mean an 85% tax rate — it means at most 85% of your benefit dollars get added to your taxable income, where they're taxed at your ordinary tax bracket. So a retiree in the 12% bracket pays roughly 12% on the taxable portion, not 85%.
A quick example
A single retiree receives $24,000 in Social Security and withdraws $20,000 from a traditional IRA. Combined income = $20,000 + half of $24,000 ($12,000) = $32,000. That's above the $25,000 line but below $34,000, so up to 50% of benefits become taxable — here, a portion of the $24,000, added to taxable income and taxed at the retiree's bracket. Had the IRA withdrawal been larger, more of the benefit would be taxed.
Why this catches more people every year
The thresholds ($25,000/$34,000 and $32,000/$44,000) were written into law decades ago and are not adjusted for inflation. As benefits and other income rise with inflation but the thresholds stay frozen, a growing share of middle-income retirees find part of their Social Security taxed. It's a slow, structural creep rather than a rule change.
The new senior deduction can soften it
The 2025 OBBBA created a temporary $6,000 senior deduction (2025–2028) for eligible older taxpayers, phasing out at higher incomes. It doesn't change how benefits are taxed, but by lowering taxable income it can reduce the overall tax a retiree pays, including on the taxable portion of benefits. Details are in our new deductions guide.
Planning ideas
- Manage withdrawal timing. Because IRA/401(k) withdrawals raise combined income, spreading them out or using Roth withdrawals (which don't count) can keep benefits below a threshold.
- Consider Roth conversions before claiming. Roth withdrawals don't add to combined income, so a retiree with Roth savings has more control. See 401(k) vs. IRA.
- Don't forget state tax. Most states don't tax Social Security, but a few do — check your state's rules.
Run your retirement income through the income tax calculator to estimate your bracket and overall tax once benefits and withdrawals are combined.
Having tax withheld from your benefits
If part of your Social Security will be taxable, you can avoid a surprise bill by having federal tax withheld directly from your monthly benefit. File Form W-4V with the Social Security Administration and choose a withholding rate of 7%, 10%, 12%, or 22% of your benefit. This works like paycheck withholding and can replace or supplement quarterly estimated payments — a simple way for retirees to stay current without writing four checks a year.
Key takeaways
- Up to 50% or 85% of benefits can be taxable, based on combined income.
- Combined income = AGI + tax-exempt interest + half your benefits.
- Single thresholds: $25,000 and $34,000; joint: $32,000 and $44,000.
- "85% taxable" is the portion added to income, not the tax rate.
- Roth withdrawals don't raise combined income — useful for control.