RETIREMENT

Social Security Taxation: Myths and Facts

Understand which parts of your Social Security benefits are taxable and how retirement income affects your tax bill.

April 24, 2026Retirement Planner7 min read

When Social Security Benefits Are Taxable

Up to 85% of Social Security benefits can be taxable depending on your combined income. Your provisional income determines how much of your benefits are subject to tax.

Calculating Combined Income

Combined income includes adjusted gross income, nontaxable interest, and half of your Social Security benefits. This total determines whether you owe tax on your benefits.

Filing Status Differences

The income thresholds for taxing Social Security benefits are different for single filers and joint filers. Know your filing status to avoid surprises.

Planning to Minimize Taxation

Lowering other taxable income, using Roth withdrawals, or delaying benefits can reduce the tax on Social Security. Use our calculators to model different retirement income strategies.

Practical Retirement Planning

Understanding this interaction helps you build a retirement plan that minimizes taxes across all income sources and maximizes your net income.