Key takeaways

• Social Security income may be taxable depending on combined income
• No more than 85% of benefits can be taxed federally
• Filing status determines taxable thresholds
• Nine states currently tax Social Security benefits
• Qualified Roth IRA withdrawals generally don’t count toward taxable income

Some Social Security income may be taxable depending on total combined income. Federal tax applies to up to 85% of benefits, and nine states also impose Social Security taxes. Whether benefits are taxable depends on filing status, income thresholds, and other retirement withdrawals.

Many people rely on their Social Security income to support their retirement needs. But many find themselves wondering whether those benefits will be taxable. The answer isn’t exactly a simple one — some of your Social Security income could be taxable, but not all of it.

Whether your benefits are taxable depends on your annual income. Keep reading to learn how much of your Social Security income will be taxable, how to file taxes for your Social Security income, states that tax Social Security benefits, and more.

How to calculate taxable Social Security benefits

To figure out whether you have to pay federal income tax on your Social Security benefits, you must determine the total amount of your combined income. This is calculated by adding your nontaxable interest and half of your Social Security benefits to your adjusted gross income (AGI). AGI includes earnings, investment income, retirement plan withdrawals, pension payments and other taxable income. Here’s the formula:

AGI + nontaxable interest + ½ of Social Security benefits = Combined income

If you’re single and your combined income is between $25,000 and $34,000 a year — or if you’re married and file jointly and your combined income is between $32,000 and $44,000 a year — up to 50% of your Social Security benefits may be taxable.¹

Meanwhile, if you’re single and your combined income is more than $34,000 a year — or if you’re married and file jointly and your combined income is more than $44,000 a year — up to 85% of your Social Security benefits will be taxable.² No more than 85% of Social Security benefits are ever taxable, regardless of the amount of your earned income.

How to report Social Security on federal taxes

The process of reporting your Social Security income on your federal taxes isn’t all that different from reporting any other type of income. First, if you received Social Security income, you’ll receive Form SSA-1099, the Social Security Benefit Statement. In Box 5 of that form, you’ll see your net Social Security benefits for the year, whether they were retirement benefits, survivor benefits, or disability benefits.

When it’s time to report your Social Security income, you’ll complete Form 1040, the U.S. Individual Income Tax Return or Form 1040-SR, the U.S. Tax Return for Seniors. You’ll report your total retirement benefits on line 6a of this form.

In addition to reporting your entire Social Security income, you’ll also report the taxable portion of your benefits. In line 6b, you’ll report the amount of benefits you’ll pay taxes on. You can use the formula above to determine the taxable portion of your benefits.

Impact of non-taxable income (other than non-taxable interest)

If you have other taxable income to report in addition to your Social Security income, it may be coming from a retirement account such as a 401(k) plan or individual retirement account (IRA). Any taxable income you get from your 401(k) or a traditional IRA, in addition to non-exempt interest, will count toward your combined income for the year meaning it could result in additional taxes on your Social Security benefits.

However, distributions you receive from non-taxable sources such as Roth IRAs or after-tax sources such as a savings or brokerage account may not count toward your combined income, meaning it won’t result in counting towards the formula for calculating the taxation of your Social Security benefits. Consider consulting with a financial planning professional to determine the best course of action and order of account withdrawal for your specific circumstances.

When you add funds to a savings account, you do so with after-tax money so any withdrawals of your principle will not be taxed, but earnings inside the account can be taxed. When you contribute to a Roth IRA, you do so with after-tax money. Because you’ve already paid taxes on those funds, you will not owe taxes on them again, including during retirement. In addition, any earnings or gains in a Roth IRA can grow tax-free and qualified withdrawals are not subject to federal income tax. Not only do qualified withdrawals from a Roth IRA not count toward your combined income for the purpose of Social Security benefits, but those withdrawals themselves also aren't subject to federal income tax, although state and local taxes may still apply.

If you’ve already been contributing to a Roth IRA, then you’ll already be able to enjoy these benefits during retirement. Even if you haven’t already been contributing to a Roth account, you can convert your traditional IRA funds to a Roth IRA. However, the conversion amount will count towards your combined income in the year of conversion, and therefore potentially cause more of your Social Security income to be taxed, up to the 85% maximum.

It’s worth stressing that a Roth IRA conversion won’t help you avoid taxation completely. Because you’re moving money from a pre-tax to an after-tax account, a Roth conversion will require that you pay income taxes on the full amount in the tax year you convert.

Another benefit of having your money in a Roth IRA rather than a traditional account is you won’t be subject to the required minimum distributions. As a result, you can leave the money in your account as long as you want. On the other hand, 401(k)s and traditional IRAs generally require distributions starting at age 73, meaning these withdrawals increase taxable income once required.

Read more: What taxes do I pay in retirement?

States that tax Social Security income

The level of taxation on your Social Security benefits depends on the state in which you live. For example, Minnesota and Utah tax Social Security income in the same way as the federal government, meaning you could pay taxes on 0% to 85% of your benefits. Other states offer additional exemptions or deductions based on your income or age, meaning you could pay even less in taxes.

The following nine states assess varying levels of state income tax on Social Security:

Colorado

Colorado taxes Social Security benefits for taxpayers who receive over a certain amount in benefits. For taxpayers between age 55 and 64, the first $20,000 of retirement benefits are not taxable. Taxpayers aged 65 and older can subtract up to $24,000 in retirement income, including Social Security, from taxable income. Benefits above that may still be taxable.³

Connecticut

Connecticut taxes Social Security benefits for taxpayers with AGIs over $75,000 (over $100,000 if married filing jointly).⁴

Minnesota

Minnesota taxes Social Security benefits for taxpayers with AGIs over $84,490 for single or head of household, over $108,320 if married filing jointly, and over $54,160 if married filing separately.⁵

Montana

Montana may tax a portion of Social Security benefits for taxpayers with AGIs over $25,000 ($32,000 if married filing jointly or $25,000 if married filing separately).⁶

New Mexico

New Mexico taxes Social Security benefits for taxpayers with more than $100,000 in income ($150,000 if married filing jointly or $75,000 if married filing separately).⁷

Rhode Island

Rhode Island may tax the portion of Social Security benefits that are federally taxable if you have not yet reached your Social Security full retirement age, or if your federal AGI exceeds $104,200 for single filers, $130,250 for married filing jointly, and $104,225 for married filing separately.⁸

Utah

Utah taxes Social Security benefits for taxpayers with AGIs over $45,000 (over $75,000 if married filing jointly or over $37,500 if married filing separately).⁹

Vermont

Vermont taxes Social Security for taxpayers who are married or civil partners filing jointly with AGIs starting at $65,000. If you file as single (or any other status), the exemption applies in full up to $50,000, phases out between $50,000 and $60,000, and ends at $60,000 and higher.¹⁰

West Virginia

West Virginia is in the process of phasing out taxes on Social Security benefits. For the 2024 tax year, 35% of Social Security benefits included in adjusted gross income could be subtracted. That number now jumps to 65% in 2025 and to 100% in 2026.¹¹

Read more: States that don’t tax retirement income

Next steps

It’s never too early to start thinking about your retirement plan and figuring out how much you may need to save per month to reach your retirement goals. For further guidance on your tax responsibilities during retirement, you may want to consider working with a tax professional.

Read more: The best U.S. states to retire in 2024

FAQs about Social Security taxes

At what income is Social Security taxable?

Federal taxes apply if combined income is over $25,000 (single) or $32,000 (joint). Up to 85% of benefits may be taxable.

Do all states tax Social Security benefits?

No. Only nine states tax Social Security, though rules vary.

Is Social Security taxable after age 70?

Yes. Taxability depends on income, not age. There’s no age at which Social Security becomes automatically tax-free.

Do Roth IRA withdrawals affect Social Security taxation?

No. Qualified Roth IRA withdrawals do not count toward combined income and do not increase taxable Social Security benefits.

Do I have to file taxes if my only income is Social Security?

Generally, no, if annual benefits are under $25,000 and there’s no other taxable income. Be sure to confirm that you have no other sources of income, including investment income, retirement withdrawals, and pension payments.

When did Social Security become taxable?

Social Security benefits became taxable in 1984 following passage of a set of amendments in 1983.¹²