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How much a retired person can earn without paying taxes depends on several factors, including the type of income, total earnings and filing status. Social Security benefits may not be taxable at all below certain income thresholds and standard deductions can offset a portion of other income. For 2026, a single filer age 65 or older can typically earn up to $18,150 in gross income before owing federal income tax thanks to an enhanced standard deduction. Furthermore, an additional deduction created under One Big Beautiful Bill Act of 2025 will allow people 65 and older to deduct another $6,000. However, specific rules apply when combining Social Security and other income sources.
A financial advisor can help you build a retirement plan that accounts for both income needs and tax efficiency.
Can Retirees Ever Stop Filing Taxes?
Some retirees may no longer need to file a federal tax return, depending on their income level, filing status, and age. The IRS sets annual thresholds based on the standard deduction to determine when a return is required.
For 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. Individuals aged 65 and older qualify for an additional deduction: $2,050 for single filers and $1,650 per person for married couples. That means a single filer age 65 or older typically doesn’t need to file unless gross income exceeds $18,150, while a married couple filing jointly with both spouses 65 or older can have up to $35,500 in gross income before a return is required.
A provision of the One Big Beautiful Bill Act signed into law in July 2025 created a temporary $6,000 deduction for eligible seniors ages 65 and older ($12,000 for married couples filing jointly). The deduction, which will be available for tax years 2025 through 2028, is subject to income limits.
Social Security benefits alone often do not trigger a filing requirement, especially if there’s little to no other income. However, if part of those benefits becomes taxable due to additional income like pension payments, IRA distributions or investment earnings, then filing may still be required. Withdrawals from tax-deferred accounts like traditional IRAs usually count as taxable income.
You can estimate your tax liability based on your income and filing status using our calculator:
For those with an income below the listed thresholds, you may not have to pay taxes. But even if you don’t have to file your taxes, it’s may be in your best interest to file anyway. That’s because you might qualify for a tax refund, which could represent a big boost for your budget.
If you aren’t sure whether or not you can stop filing taxes, the IRS has a helpful tool to help you find out. But talk to a financial advisor before deciding to skip filing your taxes. It could mean missing potential benefits.
Are Social Security Benefits Taxable?
Social Security benefits can be taxable depending on your income and filing status. To determine whether you owe taxes on your benefits, the IRS calculates your “combined income,” which is your adjusted gross income (AGI) plus tax-exempt interest plus 50% of your annual Social Security benefits. If this combined income exceeds certain thresholds, a portion of your benefits becomes taxable.
For single filers, taxes apply if the combined income is over $25,000. For married couples filing jointly, the threshold is $32,000. Up to 50% of benefits are taxable if combined income is between $25,000 and $34,000 (single) or $32,000 and $44,000 (married filing jointly). Once combined income surpasses $34,000 for single filers or $44,000 for joint filers, up to 85% of benefits may be taxable.
| Filing Status | Combined Income | Taxable Portion of Benefits |
|---|---|---|
| Single | $25,000 or less | None |
| $25,000–$34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Jointly | $32,000 or less | None |
| $32,000–$44,000 | Up to 50% | |
| Over $44,000 | Up to 85% |
For example, a single filer with $20,000 in benefits and $20,000 in earnings from a job would have a combined income of $30,000 ($20,000 in earnings plus 50% of $20,000 in benefits), triggering taxes on part of their benefits. But a married couple filing jointly with $20,000 in benefits and $20,000 from other income would also have a combined income of $30,000, which falls below the $32,000 threshold for joint filers, meaning they’d owe no federal tax on their benefits.
States That Tax Social Security Benefits
Social Security recipients in certain states need to be aware of their state’s tax requirements. There are eight states that tax Social Security benefits in 2026:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
However, these states may allow for some kind of deduction, credit or income limit to minimize the tax burden at a state level.
Strategies to Stay Below the Tax Threshold
There are several ways retirees may be able to minimize or avoid federal income taxes legally:
- Use Roth IRAs strategically: Withdrawals aren’t taxable and don’t affect Social Security taxation.
- Time withdrawals carefully: In low-income years, it may make sense to take more from tax-deferred accounts, which increase taxable income.
- Harvest capital gains: If total taxable income falls below a certain level, long-term capital gains may be taxed at 0%, though realizing those gains can still increase combined income and potentially trigger Social Security taxation even when the capital gains tax itself is zero.
- Split income between years: Delaying income or spreading it across tax years can reduce combined income.
- Convert to Roth IRA: Doing small Roth conversions before you start drawing from Social Security, in lower-income years, may reduce future required minimum distributions (RMDs).
How Required Minimum Distributions Affect Your Tax Bill
Required minimum distributions (RMDs), may significantly change your tax situation in retirement. Beginning at age 73, owners of traditional IRAs, 401(k)s and most other tax-deferred retirement accounts must generally begin taking annual withdrawals, regardless of whether they need the money. Those distributions are generally taxed as ordinary income and can increase taxable income in ways many retirees may not anticipate.
The amount you must withdraw is generally based on your account balance at the end of the previous year and an IRS life expectancy factor. Larger account balances may generate larger required distributions, and the percentage that must be withdrawn generally increases as you age. As a result, retirees with substantial retirement savings may see taxable income rise later in retirement, even if their spending habits remain unchanged.
Additional income from an RMD may also cause more of your Social Security benefits to become taxable, since Social Security taxation is generally tied to combined income.
Higher income may also affect Medicare costs. Retirees whose income exceeds certain thresholds may be subject to an Income Related Monthly Adjustment Amount, or IRMAA, surcharge that can increase Medicare Part B and Part D premiums. Since Medicare generally uses income from two years earlier to determine those surcharges, the financial impact of an RMD may not appear until years after the withdrawal occurs.
Planning ahead may help reduce these effects. Many retirees consider partial Roth conversions in the years between retirement and age 73, since moving assets from a traditional IRA to a Roth IRA before RMDs begin may reduce the balance subject to future mandatory withdrawals and potentially lower taxable income later in retirement.
Charitable giving may offer another planning opportunity. Eligible retirees can make qualified charitable distributions (QCDs) directly from an IRA to a qualified charity, and those distributions generally count toward the annual RMD requirement but are excluded from taxable income, which may help manage both income taxes and Medicare surcharges.
An RMD does not have to remain in cash. Many retirees choose to reinvest the after-tax proceeds in a taxable investment account, which may allow the assets to continue growing while maintaining flexibility for future spending, gifting or estate planning. RMDs may affect more than a single tax return and can influence multiple parts of a retirement income strategy.
Bottom Line
Earning in retirement doesn’t always trigger a tax bill, especially when income is modest and drawn from a mix of sources like Social Security and Roth accounts. Understanding how different types of income are treated under federal and state rules can help retirees keep more of what they receive. With the right timing and strategy, it’s possible to limit or avoid taxes altogether, depending on personal circumstances.
Retirement Tax Planning Tips
- Consider working with a financial advisor as you coordinate your earnings with your tax planning. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- Our income tax calculator can help you understand marginal and effective tax rates and your annual tax liability.
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