Taxes on Social Security Benefits

Many taxpayers are surprised to find out they might have to pay income tax on half (or even most) of their Social Security benefits. This is true for any type of Social Security benefit—retirement, survivors, spousal, dependents, and disability benefits—and at any age. Often, unexpected income or a distribution from a retirement plan can put you over the IRS's threshold and into taxable territory.

In this article, we'll discuss the impact of the new "senior bonus deduction" and we'll help you understand when your Social Security benefits are taxable. To know whether your benefits will be taxed, first you have to figure your "combined income," and then you compare it to the IRS's income thresholds for taxing Social Security.

How to Determine Your Combined Income

Adding up your combined income (also called your provisional income) is actually quite easy: Simply add one-half of the total Social Security you received during the year to all your other income, including any tax-exempt interest (for example, interest you earned from tax-exempt bonds).

If your combined income is over the IRS's income thresholds, your benefits will be partly taxable, but you'll only owe taxes if you still have taxable income after you've subtracted the standard deduction (or itemized deductions) and any additional deductions for seniors that apply to you (more on this below).

Income Thresholds for When Social Security Is Taxable

You'll have to pay tax on part of your Social Security benefits if your combined income exceeds these thresholds:

• $32,000 if you're married and file a joint tax return (as most couples do), or
• $25,000 if you're single.

If a married couple files their taxes separately, the threshold is reduced to zero—all of their benefits are taxable. The only exception is if they didn't live together at any time during the year; in this event, the $25,000 threshold applies to each Social Security recipient.

These taxation thresholds apply to all types of Social Security benefits: disability, retirement, dependents, and survivors benefits.

How Much of My Social Security Benefits Will Be Taxed?

How much of your Social Security benefits will be taxed depends on just how high your combined income is.

Individual filers. If you file a federal tax return as an individual and your combined income is between $25,000 and $34,000, you have to pay income tax on up to 50% of your Social Security benefits. If your income is above $34,000, up to 85% of your Social Security benefits is subject to income tax.

Joint filers. If you file a joint return, you have to pay taxes on up to 50% of your benefits if you and your spouse have a combined income between $32,000 and $44,000. If your income is more than $44,000, up to 85% of your Social Security benefits is subject to income tax.

How Does the Standard Deduction Affect When Social Security Is Taxable?

After making the calculations above to get your "adjusted gross income," you're allowed to take the standard deduction or itemized deductions. For the 2025 tax year, the deductions for someone 65 or older who is receiving Social Security benefits are $17,750 for an individual and $34,700 for a couple. In addition, for the tax years 2025 through 2028, the "Big Beautiful Bill" signed in July 2025 provides a bonus deduction for people 65 and over. You can take that additional deduction even if you itemize your other deductions.

But the bonus deduction does phase out for people with higher incomes. Single people with an adjusted gross income (AGI) of up to $75,000 and married people with income up to $150,000 are eligible for the full senior bonus deduction. The deduction begins to phase out for individuals (including heads of household) with AGI above $75,000 and couples with AGI above $150,000, and it's completely eliminated for individuals earning over $175,000 and couples earning over $250,000.

Here's a chart with possible deductions for the most common groups of Social Security beneficiaries:

Let's look at how a senior who turns 65 before the end of the tax year would apply these deductions to their Social Security benefits.

FAQs on Taxes and Social Security Benefits

Here are some answers to frequently asked questions on how to handle the taxation of Social Security benefits.

How Can I Keep My Income Below the Threshold Each Year?

Once you start receiving Social Security benefits, to keep your income below the threshold for Social Security taxation, or at least as low as possible, you may want to do one of the following:

• Put off taking money out of retirement accounts like traditional IRAs, and 401(k)s until you're required to start taking money out, at age 73.
• Choose investments that don't generate a lot of taxable income during the year—for example, stocks that don't pay dividends or tax-managed mutual funds that have low or no taxable distributions.
• Put your retirement money in Roth IRAs and Roth 401(k)s, where your earnings aren't subject to any tax if you hold the account for at least five years and are over 59.5 years old.
• Convert traditional IRAs to Roth IRAs so your earnings and distributions won't be subject to tax.
• Consider reducing your income by giving income-producing assets to your children or other relatives, or to charities.

Is There a Marriage Penalty for Taxes on Social Security Benefits?

The tax laws may encourage retired people to "live in sin"—that is, without the benefit of marriage. A couple increases the amount of income they can earn without being taxed on their Social Security benefits if they aren't married and file their taxes separately. Each partner is entitled to earn $25,000 in combined income without paying tax on their benefits, for a total of $50,000 of income without extra taxes.

In contrast, a married couple can earn no more than $34,000 in combined income without paying extra taxes. However, a married couple can get the same treatment as singles if they live apart for part of the year and file their taxes separately.

For more information on Social Security, refer to Social Security, Medicare & Government Pensions: Get the Most Out of Your Retirement & Medical Benefits, by Joseph L. Matthews and Dorothy Matthews Berman (Nolo).

Where Can I Find More Information on Calculating Social Security Taxes?

Calculating the exact amount of tax that must be paid on Social Security benefits can be complicated. IRS Publication 915, Social Security and Equivalent Railroad Retirement Benefits, contains detailed instructions and a worksheet you can use.

Should I Put Off Claiming Social Security Benefits?

If you plan to work after the normal retirement age, you might want to consider putting off claiming your Social Security benefits. If you wait until after your full retirement age to claim Social Security retirement benefits, your benefit amounts will be permanently higher.

Your benefit amount is increased by a certain percentage each year you wait up to age 70. After age 70, there is no longer any increase, so you should claim your benefits at age 70 even though they may be partly subject to income tax.

And know that, if you collect benefits before full retirement age, not only will your benefit amount be lowered due to claiming early retirement, but Social Security will withhold some of your benefits if you earn over a certain amount of money from working.