Filing 2025 Taxes? Here’s the Social Security Threshold To Watch For in 2026
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Jordan Rosenfeld
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Molly Sullivan
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Many retirees are surprised to learn that Social Security benefits are not automatically tax-free. Because the rules are complex and the income thresholds are relatively low, even middle-income retirees can find themselves paying more tax than expected.
Experts explain the importance of understanding how Social Security is taxed and how to stay ahead of income changes, even in retirement.
Benefits Are Not Automatically Tax-Free
“The biggest misunderstanding is assuming Social Security is tax-free,” said Christopher Stroup, a CFP and owner of Silicon Beach Financial. Taxation depends on combined income formulas that include half of Social Security benefits plus other income, he explained. Without calculating provisional income, retirees often misjudge their taxable thresholds.
Another reason retirees get caught off guard is that provisional income doesn’t feel tangible. Because it “is not a line item on their tax return, and no one ever sees it on a bank statement … it doesn’t feel real,” said Paul Carlson, a CPA and managing partner of Law Firm Velocity.
As a result, many retirees don’t realize their benefits may be taxed until their tax bill jumps.
The Social Security Income Thresholds That Matter Most
Retirees need to understand the provisional income thresholds that determine whether 0%, up to 50% or up to 85% of Social Security benefits become taxable, Stroup said. These thresholds apply when filing 2025 tax returns in 2026 and have not changed in decades.
Provisional income equals adjusted gross income plus nontaxable interest plus half of Social Security benefits. “If it’s under $25,000 for single filers or $32,000 for married filing jointly, benefits aren’t taxed. Above these, up to 50% or 85% of benefits can be taxable,” Stroup said.
For single filers, benefits begin to be taxed once provisional income exceeds $25,000 and up to 85% can become taxable above $34,000. For married couples filing jointly, those thresholds are $32,000 and $44,000, said Scott Vance, an enrolled agent and a CFP at TaxVanta.
How Small Income Changes in 2025 Can Raise 2026 Taxes
Because the thresholds are fixed and relatively low, even small income changes can have outsized effects, sometimes creating a compounding effect that leads to a larger tax bill the following year, Vance said.
Many retirees assume only large withdrawals matter, but a wide range of income sources can quietly increase provisional income. “Common triggers include IRA or 401(k) withdrawals, taxable investment gains, rental income and certain business income,” Stroup said.
Why Married Filers Are Especially Vulnerable
Married couples often assume Social Security thresholds simply double, but that’s not how the IRS calculates provisional income, Stroup said. The IRS looks at household income as a whole, not each spouse separately.
“The married filing jointly thresholds are only modestly higher than those for single filers, which means two Social Security checks combined with two retirement accounts can push a couple over the limit quickly,” Vance said.
“Combining incomes can push a couple into the 50% or 85% taxable range,” Stroup warned.
This is especially common when one spouse begins required minimum distributions or returns to part-time work.
Why the Thresholds Haven’t Changed and Why That Matters in 2026
One reason more retirees are paying taxes on Social Security is that the thresholds have never been adjusted for inflation, Stroup noted.
“Raising the thresholds would cost tax revenue, so it keeps getting pushed aside. That means more retirees will owe tax on Social Security in 2026,” Carlson said.
As a result, more retirees cross these limits each year simply due to cost-of-living adjustments, higher interest rates or growing retirement account balances, Vance said.
Warning Signs on Your 2025 Return That Signal Trouble Ahead
Certain changes on a tax return can signal that more Social Security income may be taxed next year. Spotting these red flags early can help retirees avoid surprises, the experts said. Warning signs include:
- A higher adjusted gross income
- New or larger withdrawals from retirement accounts
- Increased interest or dividend income
- One-time gains
- A higher portion of Social Security taxed this year compared with last year
If any of these apply, retirees may be closer to a threshold than they realize.
What Taxpayers Can Still Do Before Filing
While many planning moves need to happen before year-end, there are still steps retirees can consider before filing that may help manage provisional income and reduce future tax exposure.
“Reviewing income sources before filing can still uncover opportunities to limit exposure,” Vance said.
Stroup suggested looking into “timing distributions, deferring income, using Roth conversions strategically and considering qualified charitable distributions” to reduce provisional income.
Remember that provisional income acts as a tipping point. Once crossed, more Social Security becomes taxable faster than many retirees expect.
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