Is Social Security Taxable in 2026? Everything You Need to Know

Everyone​‍​‌‍​‍‌​‍​‌‍​‍‌ thinks that during the golden years, people should be able to relax. However, for quite some time, many Americans have considered tax season a stressful time. The question that you will hear most often from those who have retired refers to whether or not their Social Security is going to be taxable. The answer most of the time is: it may be. Once upon a time, Social Security checks were not taxed at all, but changes in the law over the years now mean that many beneficiaries have a portion of their checks subject to federal and, in some cases, state taxes.

In 2025, pandemic relief legislation, new laws, and the yearly cost-of-living adjustment (COLA) will all combine to change the landscape. In this article, we’ll go over when Social Security is taxable, how the IRS determines it, and the states that most attract seniors in terms of taxes.

Getting The Grip On The Question: Whether Social Security Counts As Taxable Income?

That’s right, around 40% of the people on Social Security can expect to have tax implications from their Social Security income. The first thing is that the IRS does not only consider your Social Security check by itself; instead, it looks at your “combined ​‍​‌‍​‍‌​‍​‌‍​‍‌income.

How the IRS Calculates Your “Combined Income”

IRS uses a specific formula to find out whether your taxes are due or not:

Combined Income = Your Adjusted Gross Income (AGI) + Nontaxable Interest + ½ of your Social Security benefits.

In case this sum surpasses the set limits, you will likely be subjected to the federal income tax on part of your benefits.

At What Federal Thresholds Does Social Security Become Taxable?

The percentage of your benefit that you will have to pay tax on depends on your filing status as well as your total income. Below are the main rules that will be in effect in 2025:

Individual Filers

Income within the range of $25,000 to $34,000: You might be liable for income tax on up to 50% of your benefits.

Income exceeding $34,000: The taxable portion of your benefits can be as high as 85%. 

Social Security Taxation for Married Couples

Should you be filing a joint return with your spouse:

Combined Income from $32,000 to $44,000: be liable for tax on up to 50% of your benefits.

More than $44,000 Combined Income: The taxable portion of your benefits can be as high as 85%.

Key Point: No matter how high your income is, you will not be taxed on more than 85% of your Social Security benefits. The remaining 15% is always tax-free at the federal ​‍​‌‍​‍‌​‍​‌‍​‍‌level.

How​‍​‌‍​‍‌​‍​‌‍​‍‌ the IRS Determines Your Combined Income

The IRS has a particular method to figure out if you have to pay taxes:

Combined income = Your Adjusted Gross Income (AGI) + Nontaxable Interest + ½ of your Social Security benefits.

You will be required to pay federal income tax on some of your Social Security benefits if the amount goes beyond some set limits.

Federal Thresholds: At What Point Does Social Security Become Taxable?

Social security taxability after a specific limit varies with the level of the benefit, which is influenced by the beneficiary’s income and tax status. Individuals’ filing status is a factor in the formula: the higher the income, the more benefits are taxed. The following are the 2025 federal rules for individual filers:

If your income was $25,000-$34,000, income tax up to 50% on the receipt of your benefit may be imposed.

If your income was over $34,000, you may be taxed on 85% of your benefits.

When is Social Security Taxable for Married Couples?

If you file a joint return with your spouse:

Combined Income between $32,000 and $44,000: You can be taxed on up to 50% of your benefits.

Combined Income above $44,000: You can be taxed on up to 85% of your benefits.

Important Note:

The federal tax on Social Security benefits rarely exceeds 85%. The remaining 15% is always exempt from federal income tax.

Will Social Security be Taxed in 2025? (Latest News)

The 2025 tax environment has changed with the “One Big Beautiful Bill” (OBBBA), which has introduced a temporary but significant Senior Tax Deduction.

From the 2025 tax season, qualifying seniors aged 65 and over may claim an extra deduction of up to $6,000 for single individuals and $12,000 for married couples filing jointly. This deduction is intended to offset the tax burden on middle-income retirees.

While under the old IRS calculations, the benefits remain “taxable, this new tax credit means that about 88% of all the senior citizens may have $0 tax on their Social Security benefits this year. 

State-Level Taxes: Which State Do You Live in?

The question of whether Social Security is federally taxable is universally resolved, but state laws are wildly different. Most states do not tax Social Security benefits, but a few do.

Is Social Security Taxable in PA?

Pennsylvania is one of the most retiree-friendly states in the U.S. It does not tax Social Security benefits, and most public and private pensions are also exempt from state income tax.

Is Social Security Taxable in NJ?

New Jersey does not tax Social Security benefits at the state level. Besides that, it grants a pension exemption to those with total income below $150,000, making it a lovely option for retirees on the East Coast.

Is Social Security Taxable in Alabama?

Alabama is also a “tax haven” for recipients of Social Security. The state does not tax Social Security benefits, regardless of your total income.

Which States Still Tax Social Security?

Only 9 states have some kind of tax on Social Security benefits, with their own income level limits:

Ways to Cut Down Your Tax Bill

Legally lessen your tax if you have surpassed the $34,000 (single) or $44,000 (joint) limits:

Monitor IRA Withdrawals: Increasing AGI by taking a massive payout from a traditional IRA or 401(k) can cause the tax on your Social Security benefits to go up.

Think about Roth Conversions: Generally, distributions from a Roth IRA are not counted as part of the “combined income.

Control Capital Gains: The selling of stocks or property can be scheduled so that, in particular years the federal thresholds will not be ​‍​‌‍​‍‌​‍​‌‍​‍‌exceeded.

Final Thoughts

Understanding that Social Security is taxable is a vital part of retirement planning. For most Americans in 2025, the combination of high standard deductions and the new Senior Tax Deduction will result in little to no tax liability on their benefits. However, if you have significant outside income from investments or part-time work, it pays to be prepared.

References :

• SSA.gov: Income Taxes and Your Social Security Benefits
• IRS.gov: Publication 915 (Social Security and Equivalent Railroad Retirement Benefits)