In many cases, Social Security benefits can be taxable at the federal level in 2025. But not everyone will pay tax on them.
Whether your benefits are taxed depends on your overall income, filing status, and other factors.
What rules determine if your Social Security is taxable?
The IRS and Social Security Administration use a concept called “combined income” (sometimes called provisional income) to determine taxation of benefits.
Combined income = adjusted gross income (AGI) + nontaxable interest + ½ of your Social Security benefits.
Your filing status and your combined income relative to threshold amounts will determine whether part of your benefits are taxable, and how much.
What are the income thresholds in 2025?
In 2025, the thresholds for taxing Social Security benefits are essentially the same as recent years:
- Single filer/head of household / qualifying widow(er): if combined income is under $25,000, none of your benefits are taxed. Above $25,000 and up to $34,000, up to 50% of benefits may be taxed. If above $34,000, up to 85% may be taxed.
- Married filing jointly: combined income up to $32,000 may avoid tax on benefits. Between $32,000 and $44,000, up to 50% may be taxed, and above $44,000, up to 85% may be taxed.
- Married filing separately: usually, you will pay taxes on benefits unless you lived apart from your spouse for the full year.
These thresholds haven’t been indexed for inflation, so over time, more people may find their Social Security taxable.
How much of the benefit can be taxed?
The taxable portion depends on your combined income:
- If you cross into the first tier: up to 50 % of benefits may be taxed
- If in the higher tier, up to 85 % may be taxed
- The IRS and SSA provide worksheets to compute the exact taxable amount.
Note: “up to” means subject to additional limits and calculations; not all beneficiaries in that range will hit 50 % or 85 %.
Has the law changed for 2025 regarding taxation of benefits?
Yes, a recent law passed in 2025 offers tax relief for many seniors, though it does not fully eliminate taxation of Social Security benefits. This is under the One Big Beautiful Bill.
The law gives individuals aged 65 and over an additional $6,000 deduction when calculating taxable income.
That can reduce how much of your Social Security becomes taxable, especially for middle-income seniors.
However, the law does not fully exempt all Social Security income from tax.
It provides more favorable treatment, but taxation still applies under the combined income rules.
How do you report taxable Social Security on your tax return?
You receive Form SSA-1099 from the Social Security Administration, showing your total benefits (Box 3).
You report all benefits on Form 1040, line 5a, and the taxable portion on line 5b.
You also include your other income (AGI) and interest, compute the combined income, and use the IRS worksheet or software to find how much benefit is taxable.
Will many seniors pay tax on their benefits in 2025?
The vast majority of low- and moderate-income retirees pay no tax on Social Security.
Because of the thresholds and the additional deduction for seniors, many will continue to be exempt. Under the new law, about 88 % of seniors are expected to pay no tax on their Social Security benefits.
Those most affected will be retirees with significant additional income — pensions, investments, wages — pushing combined income above thresholds.
What steps should you take now?
- Estimate your combined income (AGI + tax-exempt interest + half of SS).
- See where that falls relative to thresholds ($25,000, $34,000 singles; $32,000, $44,000 joint).
- Factor in the $6,000 deduction for age 65+ in 2025 when doing your tax planning.
- Use tax software or IRS worksheets to compute taxable benefits.
- If you expect part of your Social Security to be taxed, consider withholding via IRS Form W-4V so you don’t owe a big tax bill.
- Monitor IRS and SSA communications in late 2025 in case rules or interpretations are updated.
