Not everyone who receives Social Security benefits pays tax on them.
Whether your benefits are taxable depends on how much total income you have and your filing status.
Some retirees qualify for tax-free Social Security, meaning their monthly benefits are not subject to federal income tax at all.
Here’s a full breakdown of who qualifies and how the tax rules work in 2025.
Who qualifies for tax-free Social Security benefits?
You may not pay any tax on your Social Security if your combined income is below certain limits.
Combined income is your adjusted gross income plus any nontaxable interest plus half of your Social Security benefits.
According to the IRS, you will not owe federal income tax on your benefits if your combined income is:
- Below $25,000 for single filers
- Below $32,000 for married couples filing jointly
If your total income stays under these thresholds, your Social Security benefits are completely tax-free.
What is combined income and how is it calculated?
The IRS defines combined income as:
Adjusted Gross Income (AGI) + Nontaxable Interest + ½ of Social Security Benefits
For example, if you have $12,000 in other income and $20,000 in Social Security, your combined income would be $22,000 ($12,000 + $0 + $10,000).
Since that amount is below $25,000 for a single filer, your benefits would not be taxed.
Understanding this formula is key to knowing whether your benefits will be taxed or not each year.
How much of Social Security can be taxed?
If your income goes above the limits, only part of your benefits becomes taxable.
- For single filers with combined income between $25,000 and $34,000, up to 50% of benefits may be taxed.
- Above $34,000, up to 85% of benefits may be taxable.
- For married couples filing jointly, the 50% range is $32,000 to $44,000, and above $44,000 means up to 85% taxable.
These percentages refer to how much of your benefits may be included in your taxable income, not the actual tax rate you pay.
Do all states tax Social Security benefits?
No. Most states do not tax Social Security income. As of 2025, only 10 states levy some form of tax on benefits, and most offer exemptions for middle or lower-income seniors.
The states that tax Social Security in some way include: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Utah, and Vermont. (AARP)
Every other state allows retirees to keep their benefits fully tax-free at the state level.
How can retirees keep their Social Security tax-free?
To avoid paying taxes on benefits, many retirees manage their income sources strategically.
Some methods include:
- Limiting withdrawals from traditional IRAs or 401(k)s in a single year
- Using Roth IRA distributions, which are not included in taxable income
- Delaying Social Security until full retirement age, allowing lower taxable income in early retirement years
- Investing in tax-free municipal bonds, which do not raise combined income
Financial advisors often help retirees adjust withdrawals and investments to stay below the IRS thresholds for taxation.
What if your only income is Social Security?
If Social Security is your only source of income, you will almost always be exempt from taxes.
The IRS generally does not require a return to be filed if your income is below the filing threshold.
In 2025, most individuals living solely on Social Security receive less than the taxable limits, meaning their benefits remain tax-free at both the federal and state levels.
Will these tax limits change in the future?
The income thresholds for Social Security taxation, $25,000 for singles and $32,000 for couples, were set in the 1980s and have never been adjusted for inflation.
Because of this, more retirees each year end up paying tax as average benefits and retirement income rise.
Lawmakers have proposed indexing these limits to inflation, but as of 2025, no change has been approved.
Experts expect that unless Congress acts, the number of retirees paying tax on benefits will continue to grow.
However, those with modest retirement income or who rely mainly on Social Security will still qualify for tax-free benefits.
