Sorting this out before you file your tax return will save you a big headache.
There’s been a lot of confusing information going around about Social Security benefit taxes over the last year. The White House claimed that President Trump’s “big, beautiful bill” eliminated it, fulfilling a key campaign promise to seniors. But diving deeper into the law reveals no major changes to benefit taxes.
This doesn’t mean you’re guaranteed to owe them in 2026, but there’s certainly a possibility. Understanding how much you could owe and how to prepare for these taxes is key to avoiding surprises when you file your 2026 return.
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Social Security benefit taxes are becoming increasingly common
Social Security benefit taxes remain exactly the same as they’ve looked for more than 30 years. The government decides whether to tax any of your checks by looking at your provisional income. This is your adjusted gross income (AGI), plus nontaxable interest from municipal bonds, and half your annual Social Security benefit. For example, if your AGI is $60,000 and you get $20,000 from Social Security, your provisional income is $70,000.
The table breaks down how much of your Social Security benefits you could owe federal income taxes on, based on your provisional income and your marital status.
|
Marital Status |
0% of Benefits Taxable If Provisional Income Is Below: |
Up to 50% of Benefits Taxable If Provisional Income Is Between: |
Up to 85% of Benefits Taxable If Provisional Income Exceeds: |
|---|---|---|---|
|
Single |
$25,000 |
$25,000 and $34,000 |
$34,000 |
|
Married |
$32,000 |
$32,000 and $44,000 |
$44,000 |
Data source: Social Security Administration.
This doesn’t mean you’re at risk of losing up to 85% of your benefits. If you’re in the 22% tax bracket, for example, the government would first calculate what 85% of your benefits are, and then take 22% of that in taxes.
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Still, the thresholds above are pretty low, and they’re not indexed for inflation. That’s why Social Security benefit taxes have become increasingly common over time. Even if you haven’t owed any in the past, you may encounter them in 2026 or in future years.
Some seniors also owe state Social Security benefit taxes on top of this. However, only a handful of states still have these taxes. Of the ones that do, many exempt low-to-average-income seniors from paying them. If you have any questions about how your state benefit taxes work, check with an accountant in your state or the Department of Taxation.
How to prepare for Social Security benefit taxes
There are two ways you can prepare for Social Security benefit taxes if you expect a bill and want to avoid a last-minute scramble for extra cash at tax time.
Your first option is to save up for these taxes on your own. You can work with an accountant to estimate how much you’ll want to set aside for this. Then, set aside a certain amount each month or each year to cover these costs. Keep these funds in a savings account where you won’t accidentally spend them.
You can also request that the Social Security Administration withhold money directly from your checks for taxes. You can choose between 7%, 10%, 12%, and 22% withholding.
You can set this up through your my Social Security account if you have one. And you can also call the Social Security Administration or set up an appointment at your local Social Security office.
If you have any questions about how Social Security benefit taxes work, that’s also a good reason to reach out to the Social Security Administration. A quick call could save you a lot of confusion and possibly unexpected tax consequences.