The question “will social security be taxed in 2026” is top-of-mind for millions of Americans who rely on monthly benefits. As of today, federal law still allows a portion of Social Security income to be taxed when beneficiaries exceed certain income thresholds. No federal legislation has been enacted that removes these taxes beginning in 2026, though several proposals have circulated in Washington over the past year.
The most recent confirmed updates show that the federal tax structure for Social Security remains unchanged at this moment. Some states have introduced adjustments for local taxation starting in 2026, but these do not affect federal tax policy. Beneficiaries should assume current rules will continue unless Congress passes new legislation before the close of 2025.
Current Federal Rules for Social Security Taxation
The federal framework used today has been in place for decades. It determines taxation based on “combined income,” which is an individual’s adjusted gross income plus nontaxable interest plus half of their Social Security benefits.
Under this formula:
- Individuals whose combined income exceeds established federal thresholds may pay tax on up to 85% of their benefits.
- These thresholds have not been scheduled to change in federal statute for 2026.
- No law has been passed that eliminates the federal tax on benefits beginning in 2026.
This means the familiar formulas remain the default position for the 2026 tax year unless Congress acts.
Recent Proposals and What’s Actually Changed
During 2024 and 2025, several federal lawmakers introduced bills that sought to eliminate taxes on Social Security benefits. The proposals varied, including plans to replace the lost revenue by raising the wage cap for payroll taxes. These bills generated public discussion but have not been enacted into law.
One major federal bill passed in 2025 created a new senior deduction for taxpayers aged 65 and older beginning with the 2026 tax year. This deduction, however, does not eliminate taxation on Social Security benefits. It simply expands the general deductions available to qualifying taxpayers. Because the legislation does not modify the sections of the tax code that govern how benefits are taxed, Social Security taxation remains intact for 2026.
While some online commentary has suggested broader changes could occur, no official federal agency, tax authority, or enacted statute confirms a full exemption of Social Security benefits in the upcoming tax year.
State-Level Changes for 2026
Although the federal tax rules remain unchanged, a few states have made adjustments to their own treatment of Social Security income. These changes affect taxpayers filing at the state level only.
Some states are expanding deductions for retirees in 2026. Others already exempt Social Security benefits entirely. These state policies do not impact whether the federal government taxes the benefits.
Because state rules vary widely, many taxpayers will need to review both federal and state guidance when preparing for the 2026 filing season. The key point remains that state adjustments do not modify federal tax law.
What Taxpayers Should Expect for the 2026 Filing Season
Unless Congress enacts new legislation before the end of 2025:
- Taxation of Social Security benefits at the federal level will continue under the current law.
- Combined income thresholds will continue to determine whether up to 85% of benefits become taxable.
- Filing requirements for seniors will remain tied to the standard deduction and, beginning in 2026, the newly established senior deduction.
- Beneficiaries should review all income sources—pensions, withdrawals, interest, wages—to determine whether their benefits may be taxed.
Some retirees may see a shift in their tax liability due to higher standard deduction amounts and routine annual inflation adjustments built into the tax code. However, these adjustments do not change the structure of Social Security benefit taxation itself.
Key Figures Relevant to 2026
Here are the confirmed numbers that affect tax planning for the 2026 tax year:
- Taxable maximum income: The wage cap for Social Security payroll taxes rises to $184,500 for 2026. This affects workers rather than retirees, but it can influence long-term revenue for the program.
- Standard deduction: For 2026, the standard deduction increases to $16,100 for single filers and $32,200 for married couples filing jointly.
- Senior deduction: Taxpayers aged 65 and older receive an additional deduction starting in 2026, though the amount depends on filing status.
- Benefit formulas: Cost-of-living adjustments and annual benefit computations continue on their normal schedule, unrelated to benefit taxation.
These figures help retirees estimate potential tax outcomes, but none of them remove federal taxation on benefits.
Common Misconceptions About 2026 Social Security Taxes
Several misunderstandings have circulated around the topic. Here are the most frequent ones—along with what is actually true:
- Misconception: Social Security benefits will automatically become tax-free in 2026.
Reality: No such law has been enacted. Taxes remain unless Congress passes a change. - Misconception: Federal agencies have announced a shift to pension-style taxation starting in 2026.
Reality: Some discussions have appeared in public policy materials, but no binding statute mandates this for 2026. - Misconception: State exemptions eliminate federal taxes.
Reality: State-level decisions do not affect federal taxation. - Misconception: The new senior deduction removes taxes from Social Security benefits.
Reality: The deduction reduces taxable income but does not alter benefit taxation directly.
Understanding these points helps retirees avoid confusion as the 2026 filing year approaches.
Will Federal Taxation on Benefits Change Before 2026?
Congress could pass a new law at any time, including late in 2025. If lawmakers do approve a change that affects the treatment of Social Security benefits, it would apply to the 2026 tax year only if the law specifies an effective date aligned with that year.
At this moment, no pending legislation has advanced far enough to guarantee a policy shift. Since federal tax changes often require extended debate and negotiations, beneficiaries should plan based on the rules that exist today.
The Bottom Line for Retirees
So—will Social Security be taxed in 2026?
Under the laws in place right now, the answer is yes. Federal taxation of benefits remains unchanged, and beneficiaries whose income exceeds federal thresholds will continue to owe taxes on up to 85% of their benefits unless Congress passes a new law.
Retirees should stay alert to legislative developments, monitor income sources, and prepare for the 2026 filing season using the current framework.
Have thoughts on this topic or questions about what the 2026 tax year means for you? Share your views below and stay connected for further updates.