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What is the income threshold for taxing Social Security benefits in 2026?
Executive Summary
The claim that income thresholds for taxing Social Security benefits in 2026 are unchanged is accurate: the traditional “combined income” thresholds remain $25,000 for single filers and $32,000 for married filing jointly, above which up to 50% or 85% of benefits can become taxable depending on income and filing status. These thresholds and the mechanics explaining how benefits become taxable are distinct from the Social Security earnings‑test limits and the 2026 Social Security wage base, which changed for 2026 and have been reported separately [1] [2] [3].
1. What people got wrong — confusing earnings tests with tax thresholds
A common error is conflating the Social Security earnings‑test limits (which reduce benefits for workers below full retirement age who earn above certain amounts) with the federal income‑tax thresholds that determine whether Social Security benefits are taxable. Reporting on the 2026 earnings‑test limits—$24,480 for those under full retirement age and $65,160 for those who reach full retirement age—does not address whether benefits are subject to federal income tax; those are separate rules administered by the IRS, not the Social Security Administration [3]. This distinction matters for retirees and working beneficiaries because hitting an earnings‑test limit can temporarily reduce benefits, while exceeding combined‑income thresholds can increase federal tax liability. The sources discussing earnings limits do not change the longstanding tax thresholds, which continue to be set by tax law and IRS guidance [3] [2].
2. The tax thresholds that determine when benefits are taxed
Federal tax law determines the “combined income” test: combined income equals adjusted gross income plus nontaxable interest plus one‑half of Social Security benefits. For 2026, the taxable‑benefit thresholds remain $25,000 for single filers and $32,000 for married filing jointly; if combined income exceeds these amounts, a portion of Social Security benefits becomes taxable, potentially up to 85% of benefits at higher levels. These thresholds have been repeatedly cited in tax guidance and summaries of Social Security taxation and were confirmed in recent tax‑year discussions summarizing 2026 adjustments, where the IRS announced inflation adjustments for other tax items but did not change the fundamental Social Security tax thresholds [1] [2]. Keep in mind the bracket in which part of the benefit becomes taxable depends on two threshold tiers, and higher incomes trigger larger taxable percentages.
3. How the two-step calculation produces taxable benefit amounts
The practical calculation is a two‑step process using those thresholds: first, determine if combined income exceeds the lower threshold ($25,000 single; $32,000 joint). If so, up to 50% of benefits may be taxable until a higher threshold is met; above that higher tier, up to 85% of benefits can be taxed. The IRS explains this through worksheets in Publication 915 and related guidance; recent IRS releases on 2026 inflation adjustments did not alter this methodology or the underlying thresholds, so the worksheets and percentage tiers remain the standard for 2026 tax returns [2]. Taxpayers should compute combined income carefully because inclusion of nontaxable interest and half of benefits can push taxpayers into taxable ranges even when other income looks modest.
4. Why the 2026 wage base and COLA headlines are related but separate issues
News on the 2026 Social Security wage base (the maximum earnings subject to Social Security payroll tax) and the 2026 cost‑of‑living adjustment (COLA) are often reported alongside tax‑threshold discussions, which fuels confusion. The 2026 wage base (reported at $184,500) and the COLA affect payroll tax liability and benefit amounts respectively, but neither directly changes the combined‑income thresholds used to determine federal income taxability of benefits unless Congress acts to change tax law [1] [4]. Journalistic pieces that focus on COLA or payroll caps without addressing the IRS thresholds risk leaving readers with a misleading impression that their tax exposure changed for 2026.
5. Sources, dates, and how coverage diverged
Recent coverage through October and early November 2025 clarified these separations: Investopedia summarized the continued tax‑threshold framework for Social Security benefit taxation and noted the unchanged $25,000/$32,000 thresholds while also reporting the 2026 wage base [1]. The IRS release on 2026 inflation adjustments described multiple tax items for tax year 2026 but did not alter Social Security benefit tax thresholds, confirming that the long‑standing combined‑income rules persist [2]. Reporting on earnings‑test limits, such as the Motley Fool piece, accurately updated the 2026 earnings‑test amounts but did not — and should not — be read as changing taxation thresholds [3]. These dates and emphases explain why different outlets can correctly report different numbers without contradiction.
6. Practical bottom line for taxpayers preparing for 2026
If you or your spouse receive Social Security benefits, monitor your combined income because the thresholds that trigger taxation of benefits for 2026 are $25,000 (single) and $32,000 (joint); these remain in force and are calculated using AGI plus nontaxable interest plus half of Social Security benefits. Separately, be aware of the 2026 earnings‑test limits and the Social Security wage base and COLA, which affect benefits and payroll taxes but do not alter the IRS taxability thresholds unless Congress enacts a change [1] [2] [3]. Consult the IRS worksheets or a tax professional when preparing 2026 returns to determine exactly how much of your benefits are taxable.