Is There Tax on Social Security? Thresholds, State Rules, Withholding

Social Security benefits can be subject to federal income tax, and in some states to state tax as well, but whether you actually owe anything depends on how much other income you have. If Social Security is your only income, the tax on Social Security is almost always zero. Once you add a pension, wages, investment income, or retirement account withdrawals, the IRS uses a formula to tax anywhere from 0% to 85% of your benefits.¹ A new senior deduction in effect from 2025 through 2028 wipes out that bill for a large majority of retirees.

How the IRS Calculates What’s Taxable

The IRS doesn’t look at your Social Security check by itself. It uses a figure called combined income (sometimes provisional income) that adds three numbers: your adjusted gross income, any tax-exempt interest such as municipal bond income, and exactly half of your Social Security benefits for the year.²

An example makes this concrete. You collected $24,000 in Social Security, drew $18,000 from a pension, and earned $2,000 in municipal bond interest. Your combined income is $12,000 (half of Social Security) plus $18,000 plus $2,000, which comes to $32,000. That $32,000 is what the IRS compares to the thresholds below, not the $44,000 you actually received.

The tax-exempt interest piece catches people off guard. Municipal bond interest is normally free from federal income tax, but it still counts here. Retirees with large muni portfolios sometimes find their “tax-free” investments are quietly making Social Security taxable.

Federal Thresholds That Trigger Taxation

Fixed dollar thresholds decide whether none, up to half, or up to 85% of your benefits are taxable. The numbers depend on your filing status.³

Single, Head of Household, or Qualifying Surviving Spouse

Combined income below $25,000: no tax on benefits.
Combined income between $25,000 and $34,000: up to 50% of benefits taxable.
Combined income above $34,000: up to 85% of benefits taxable.

Married Filing Jointly

Combined income below $32,000: no tax on benefits.
Combined income between $32,000 and $44,000: up to 50% of benefits taxable.
Combined income above $44,000: up to 85% of benefits taxable.

Those percentages are the share of your benefits added to your taxable income, not the tax rate. If 85% of $24,000 in benefits is taxable, that means $20,400 gets added to your return as income. You then pay your ordinary income tax rate on that $20,400.⁴

No matter how high your income goes, the IRS can never tax more than 85% of your benefits. At least 15% of every recipient’s Social Security stays permanently untaxed.³

Married Filing Separately

Married couples filing separate returns face the harshest rule. If you lived with your spouse at any point during the year, your base amount is $0, so benefits are taxable starting from the first dollar of combined income.⁵ The one exception: if you and your spouse lived apart for the entire tax year, you use the same $25,000 and $34,000 thresholds as single filers.¹

One more thing worth knowing about those thresholds: Congress set the lower amounts in 1983 and the upper amounts in 1993, and none of them have ever been adjusted for inflation.⁶ Cost-of-living raises push more retirees over the lines every year even when their real purchasing power hasn’t moved.

The New Senior Deduction Through 2028

The One Big Beautiful Bill Act, signed into law in 2025, did not change the thresholds above. Instead, it created a new deduction that effectively cancels the tax on Social Security for most retirees. Anyone 65 or older can claim an extra $6,000 deduction on top of the regular standard deduction and the existing senior add-on. Married couples where both spouses qualify get $12,000.⁷

Both itemizers and standard-deduction filers can use it. It phases out for single filers with modified AGI above $75,000 and joint filers above $150,000. Married couples have to file jointly to claim it.⁷

The effect is substantial. A single retiree receiving the average benefit of about $24,000 per year will generally see the new deduction, combined with existing ones, fully offset the taxable portion. The White House estimates 88% of seniors receiving Social Security will owe no federal tax on those benefits during the 2025 through 2028 window.⁸ The deduction is temporary and expires after 2028 unless Congress extends it.

If Social Security Is Your Only Income

If Social Security was your only income for the year, your benefits aren’t taxable and you likely don’t need to file a federal return. Half of your benefits, which is what enters the combined income calculation, will sit well below the $25,000 single or $32,000 joint threshold in almost every case. Even at the maximum benefit, you’d need additional income to cross into taxable territory.¹

Disability Benefits and SSI

Social Security Disability Insurance follows the exact same rules as retirement benefits. If your combined income clears the thresholds, part of your SSDI check is taxable.⁵

Supplemental Security Income is different. SSI is a needs-based program, and the IRS explicitly excludes it from taxable income.⁹ SSI payments don’t appear on Form SSA-1099 and don’t go on your return at all.

State Taxes on Social Security

Most states don’t tax Social Security. Nine states have no personal income tax at all, and most of the states that do collect income tax exempt Social Security specifically.

As of 2026, eight states tax some portion of benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. West Virginia completed its phase-out in 2026 and no longer includes benefits in taxable income.¹⁰ Kansas, Missouri, and Nebraska eliminated their Social Security taxes in 2024.

The eight remaining states each handle it differently. Some mirror the federal thresholds. Others use their own income-based exemptions or age-based exclusions to protect lower-income retirees. Connecticut exempts benefits entirely below certain AGI levels. Colorado offers a pension subtraction for filers 55 and older. Rules change often, so if you live in one of these eight states, check your state tax agency’s page each year.

Reporting Benefits on Your Return

Each January, the Social Security Administration issues Form SSA-1099 to everyone who received benefits during the prior year. It’s available online by early February, and most people also get a mailed copy.¹¹ Box 5 shows your net benefits: total received minus any repayments.

You put the Box 5 amount on line 6a of Form 1040 or Form 1040-SR. The taxable portion goes on line 6b. The Form 1040 instructions include a worksheet for the calculation, and Publication 915 has a more detailed version.¹ Tax software handles it automatically once you enter the SSA-1099 numbers.

If you repaid benefits during the year and Box 5 shows a negative number, you may be able to claim an itemized deduction for the repaid amount that was already included in your gross income in an earlier year. Repayments over $3,000 have special rules that Publication 915 walks through.

How to Pay the Tax

Retirees who owe tax on Social Security have a few ways to stay current.

Withholding From Your Monthly Check

The simplest option is to have Social Security withhold federal income tax directly from your monthly benefit. File IRS Form W-4V, or request withholding through your online Social Security account. The only rates available are 7%, 10%, 12%, or 22% of the monthly benefit.¹² Custom percentages and flat dollar amounts aren’t allowed. Retirees with moderate income typically find 10% or 12% covers the liability without overwithholding.

Quarterly Estimated Payments

If you want more control, or if Social Security withholding alone won’t cover the tax on your other retirement income, make quarterly estimated payments using Form 1040-ES.¹³ Payments are due four times a year, typically in April, June, September, and January. IRS Direct Pay lets you send them for free straight from a bank account without setting up an IRS online account.¹⁴

Avoiding the Underpayment Penalty

If your withholding and estimated payments fall short during the year, the IRS charges a penalty on the shortfall. You’re safe if your total balance due is under $1,000, or if you paid at least 90% of your current year’s tax liability, or at least 100% of what you owed last year. If your prior-year AGI topped $150,000 ($75,000 for married filing separately), that 100% figure rises to 110%.¹⁵ For retirees whose income swings year to year because of a required minimum distribution or capital gains, paying 100% (or 110%) of last year’s tax is the safest route.

1
Internal Revenue Service. Publication 915 (2025), Social Security and Equivalent Railroad Retirement Benefits
2
Social Security Administration. Must I Pay Taxes on Social Security Benefits?
3
Office of the Law Revision Counsel. 26 USC 86 – Social Security and Tier 1 Railroad Retirement Benefits
4
Internal Revenue Service. IRS Reminds Taxpayers Their Social Security Benefits May Be Taxable
5
Internal Revenue Service. Regular and Disability Benefits
6
Congressional Research Service. Social Security Benefit Taxation Highlights
7
Internal Revenue Service. One, Big, Beautiful Bill Act: Tax Deductions for Working Americans and Seniors
8
The White House. No Tax on Social Security is a Reality in the One Big Beautiful Bill
9
Internal Revenue Service. Social Security Income
10
West Virginia State Tax Department. Social Security Modification
11
Social Security Administration. Get Tax Form
12
Internal Revenue Service. Form W-4V – Voluntary Withholding Request
13
Internal Revenue Service. About Form 1040-ES, Estimated Tax for Individuals
14
Internal Revenue Service. Direct Pay Help
15
Internal Revenue Service. Underpayment of Estimated Tax by Individuals Penalty