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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 generally having to file a federal income tax return under the standard filing threshold. Furthermore, a temporary deduction created in 2025 allows eligible people age 65 and older to deduct up to another $6,000, but this additional deduction does not increase the general gross-income filing threshold. 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 is at least $18,150, while a married couple filing jointly with both spouses 65 or older generally has a filing threshold of $35,500. Other filing requirements can still apply even when gross income is below these amounts.
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 if both spouses qualify). The deduction, which will be available for tax years 2025 through 2028, is subject to income limits. For 2026, it begins to phase out when modified adjusted gross income exceeds $75,000 for an individual or $150,000 for a married couple filing jointly. This deduction is separate from the standard deduction and is available to eligible taxpayers who itemize as well as those who claim the standard deduction.
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.
If your gross income falls below the applicable filing threshold, you may not have to file a federal income tax return under the general filing rules. But even if you don’t have to file your taxes, it 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 |
| $25,001–$34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Jointly | $32,000 or less | None |
| $32,001–$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.
How Working in Retirement Affects Social Security Benefits
A retiree can receive Social Security and still have earnings from work, but the effect on benefit payments depends on age and how much is earned during the year. These payment rules are separate from federal income tax rules.
Suppose a retiree earns $30,000 from a job in 2026 and will not reach full retirement age at any point during that year. The first $24,480 is within the applicable earnings threshold, leaving $5,520 above it:
- $30,000 – $24,480 = $5,520
For someone in this situation, the benefit adjustment equals half of the excess earnings:
- $5,520 ÷ 2 = $2,760
So $2,760 of benefits would be withheld under the earnings test.
The calculation changes for a retiree who reaches full retirement age during 2026. In that case, the applicable threshold is $65,160, and only earnings received before the month full retirement age is reached are used for this test. The adjustment equals one-third of the amount above that threshold. Once full retirement age is reached, earnings no longer trigger this type of benefit withholding.
The test also distinguishes earned income from other forms of income. Pay from employment and net self-employment earnings generally enter the calculation. Pensions, annuity payments, interest and investment income generally do not.
This earnings test determines whether part of a retiree’s Social Security payment is temporarily withheld because of work income. It does not decide whether wages or Social Security benefits are subject to federal income tax.
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: Qualified Roth IRA withdrawals generally aren’t taxable and aren’t included in the combined-income calculation used to determine whether Social Security benefits are taxable.
- 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. The applicable RMD starting age depends on birth year: It is 73 for people born from 1951 through 1959 and 75 for those born in 1960 or later. Traditional IRA owners generally must begin taking annual withdrawals at the applicable age, while some participants in workplace retirement plans may be able to delay RMDs if they are still working and meet the plan’s rules. 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 their applicable RMD starting age, 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, some retirees may be able to reduce or avoid federal income tax, depending on their income mix and 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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