Social Security is taxed only if your total income exceeds a threshold

Whether you pay federal income tax on Social Security depends on your combined income — not just what you receive from Social Security. The IRS uses a formula that adds your adjusted gross income, nontaxable interest, and half your Social Security benefits. If that total exceeds a set amount, part of your benefit becomes taxable.

For 2024, the thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. If you are married filing separately, the threshold is $0 — meaning any Social Security is potentially taxable. These thresholds have not changed since 1984, so more people cross them each year as wages and benefits rise.

The amount of your benefit that gets taxed is not a flat percentage. Instead, the IRS taxes either 50 percent or 85 percent of your benefit, depending on how far your combined income exceeds the threshold. Most people who owe tax on Social Security pay tax on no more than 85 percent of their benefit.

Key Takeaways

  • Social Security is taxed only if your combined income (wages, pensions, interest, plus half your Social Security) exceeds $25,000 for single filers or $32,000 for married couples filing jointly.
  • If you cross the threshold, the IRS taxes either 50 percent or 85 percent of your benefit, not the whole amount.
  • State taxes on Social Security vary widely — some states tax it, some do not, and some exempt it only if your income is below a certain level.
  • You can reduce the amount taxed by managing other income sources, such as delaying retirement or spreading investment sales across years.
  • The IRS can withhold tax from your Social Security check if you request it, which prevents a surprise bill at tax time.

How the IRS calculates what portion of your benefit is taxable

The calculation has two tiers. First, the IRS adds your adjusted gross income, nontaxable interest (such as municipal bond interest), and half your Social Security benefit. If that sum exceeds the first threshold ($25,000 single, $32,000 married filing jointly), you move to the second step.

In the second step, the IRS takes the amount you exceeded the first threshold and multiplies it by 50 percent. That is the amount of Social Security that becomes taxable — up to a maximum of 50 percent of your total benefit. If your combined income exceeds the second threshold ($34,000 single, $44,000 married filing jointly), the calculation shifts: the IRS now taxes up to 85 percent of your benefit instead.

This means a single person with $26,000 in combined income pays tax on roughly $500 of their Social Security (50 percent of the $1,000 overage). A single person with $50,000 in combined income pays tax on a much larger share — up to 85 percent of their benefit. The exact amount depends on how far above the second threshold they fall.

State taxes on Social Security vary widely

Thirteen states tax Social Security to some degree: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. However, most of these states offer partial or full exemptions based on age or income level.

Colorado, Kansas, and Nebraska tax Social Security the same way the federal government does — using combined income thresholds. Connecticut, Minnesota, and Utah tax it only if your total income exceeds a higher threshold than the federal one. West Virginia taxes it only for retirees under 59½. Montana and New Mexico exempt it entirely for residents over 62.

If you live in a state that taxes Social Security, check your state's tax return instructions or contact your state revenue office to see whether your income falls below the exemption level. Many people who owe federal tax on Social Security owe nothing to their state.

Ways to reduce the amount of Social Security that gets taxed

Because the tax is based on combined income, lowering your other income sources can keep you below the threshold or reduce how far you exceed it. If you are still working, earning less in a given year means less combined income. If you have investment income, you can control when you sell assets — selling in a year when you have less other income spreads the gain across multiple years and may keep you below the threshold in any single year.

Delaying Social Security also helps. If you claim at 70 instead of 62, you receive a higher monthly benefit, but you have more years of lower income before you start. Those early years may fall entirely below the taxable threshold. Once you do claim, the higher benefit amount may still result in less total tax over your lifetime because you spent years with no Social Security income at all.

Roth conversions — moving money from a traditional IRA to a Roth IRA — can backfire in the year you convert because the conversion counts as income. However, if you convert in a year when you have not yet claimed Social Security, or when you have unusually low other income, you may pay less total tax over time. Consult a tax professional before attempting this strategy.

How to request tax withholding from your Social Security check

If you know you will owe tax on your Social Security, you can ask the Social Security Administration to withhold federal income tax from your monthly check. This prevents a large bill when you file your return and may reduce or eliminate the need to make quarterly estimated tax payments.

To request withholding, complete Form W-4V (Voluntary Withholding Request) and mail it to your local Social Security office, or bring it in person. You can choose to withhold 7 percent, 10 percent, 12 percent, or 22 percent of your benefit. The Social Security Administration does not offer other withholding percentages, so you may need to round up or down depending on your tax situation.

You can change your withholding request at any time by submitting a new Form W-4V. If you want to stop withholding, submit a new form requesting zero withholding. The change takes effect the month after Social Security receives your request.

What counts as income for the combined income calculation

Combined income includes wages, self-employment income, pensions, annuities, capital gains, dividends, interest, and rental income. It also includes income from a job outside the United States if you are a U.S. citizen. Nontaxable interest — such as interest from municipal bonds — counts toward combined income even though it is not taxed as ordinary income.

Some income does not count. Supplemental Security Income (SSI), Supplemental Nutrition information Program (SNAP) benefits, and other means-tested benefits do not count. Neither does the return of your own principal when you withdraw from a savings account or sell an asset at a loss. Veterans' benefits do not count either, unless you elected to receive them as a pension instead of a lump sum.

If you are unsure whether a specific income source counts, check IRS Publication 915, which lists all income types and explains the combined income calculation in detail.

Frequently Asked Questions

Do I have to pay federal tax on Social Security if I am over 65?

Age alone does not determine whether Social Security is taxed. The tax depends entirely on your combined income. You could be 80 and owe no tax if your combined income is below the threshold, or you could be 66 and owe tax if your combined income is high enough. The standard deduction for people over 65 is higher than for younger filers, which may reduce your taxable income, but it does not affect whether Social Security itself is taxable.

If I have not worked in years, will my Social Security be taxed?

Not necessarily. If your only income is Social Security and you have no other sources — no pensions, interest, dividends, or capital gains — your combined income will be below the threshold and none of your benefit will be taxed. However, if you have investment income, a pension, or other earnings, those count toward combined income even if you are not currently working.

Can I avoid the Social Security tax by not claiming benefits until later?

Delaying your claim reduces the years you receive benefits and may lower your lifetime tax burden, but it does not eliminate the tax once you do claim. If your other income is high, you will still owe tax on Social Security whenever you start receiving it. However, the years before you claim are tax-free, which can be an advantage if you have low income during that period.

What happens if I do not pay the tax owed on my Social Security?

If you owe tax and do not pay it, the IRS will assess penalties and interest on the unpaid amount. You may also face a larger tax bill in future years. The safest approach is to request withholding from your Social Security check or make quarterly estimated tax payments if you expect to owe tax.

Does the Social Security tax threshold ever change?

The thresholds ($25,000 and $34,000 for single filers, $32,000 and $44,000 for married couples) have remained the same since 1984. Congress would have to pass new legislation to change them. Because they are fixed while wages and benefits rise, more people cross the thresholds each year.