Will there be taxes on Social Security for retirees in 2026?
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Executive summary
Yes — Social Security benefits remain potentially subject to federal income tax in 2026 under the existing “combined income” rules that can make up to 85% of benefits taxable, but a new enhanced senior deduction and rising standard deductions mean many retirees will pay less or no federal tax on those benefits in tax year 2026 (filed in 2027) even though payroll-tax rules and withholding thresholds also change in 2026 [1] [2] [3].
1. What “taxes on Social Security” actually means for retirees
“Taxes on Social Security” usually refers to two different things: federal income tax on Social Security benefits (which depends on a retiree’s combined income and can subject up to 85% of benefits to tax) and payroll taxes that fund Social Security (FICA/OASDI) paid by workers — the first applies to benefit recipients when they file income tax returns, the second applies to earnings while working; both topics are relevant in 2026 but affect different groups (benefit filers vs. workers) [1] [3].
2. The federal income‑tax rules for benefits in 2026 remain in place, but the bite may be smaller for many
The statutory thresholds that determine whether benefits are taxable — the combined‑income test that can make 50% or 85% of benefits taxable — remain the framework used in 2026, but the effective tax retirees pay will be reduced for many because of a new, enhanced seniors’ deduction and higher standard deductions enacted in recent federal tax changes [1] [4] [5].
3. The new senior deduction is the game‑changer for many taxpayers in 2026
A recently enacted senior deduction (described in reporting as a $6,000 deduction for qualifying seniors) takes effect for tax year 2026 and could eliminate federal tax on Social Security for many households aged 65 and older by reducing taxable income, though the deduction is temporary and set to expire at the end of 2028, so its protective effect is not permanent [4] [5] [6].
4. State taxes still vary — some states phase out taxes on benefits while others keep them
State treatment of Social Security differs; some states, like West Virginia, have been phasing out their taxes on Social Security benefits with full exemption for 2026 returns noted in reporting, while other states continue to tax benefits based on their own rules, so whether a retiree pays state tax on benefits in 2026 depends on state law [1] [2].
5. Payroll‑tax changes in 2026 affect workers, not the taxation of benefit checks
Separately, Social Security’s payroll tax rules change in 2026: the taxable wage base (the amount of earnings subject to the 6.2% employee Social Security tax) rises to $184,500, meaning higher‑earning workers will pay more into the system in 2026; this change does not itself change whether current beneficiaries’ monthly checks are treated as taxable income for federal return purposes [7] [8] [9].
6. Practical implications and what to watch for when filing
Retirees should watch the SSA‑1099 form arriving after December 26 (which reports benefit amounts used to compute taxable Social Security), consider the impact of the new senior deduction and higher standard deductions on their 2026 tax return, and remember that higher Medicare Part B premiums or a one‑time lump payment can change “combined income” and thus taxability; tax professionals urge planning because timing of other income sources (RMDs, lump sums) can push benefits over taxation thresholds even with the new deductions [10] [2] [4].
Conclusion
In short, Social Security benefits remain potentially taxable under long‑standing federal rules in 2026, but the new senior deduction and other 2026 tax changes mean many retirees will see reduced or no federal income tax on their benefits for tax year 2026; state tax treatment and individual income mixes will determine the final outcome for any given retiree [1] [4] [2].