How Social Security benefits get taxed
The United States has no separate pension tax election the way some countries do. Instead, how much of your Social Security benefit becomes taxable depends on provisional income: other income plus tax-exempt interest plus half of your benefits. Compare that figure with two statutory thresholds and either 0%, up to 50%, or up to 85% of the benefit is added to taxable income.
This calculator follows the worksheet structure in 26 U.S.C. sec. 86: below the first threshold nothing is taxable; between the thresholds up to half of the excess is included; above the second threshold up to 85% of the excess is included, plus a smaller carried amount, capped at 85% of total benefits.
Basis and date — thresholds come from 26 U.S.C. sec. 86 and IRS Publication 915. Unlike most tax figures these base amounts are fixed by statute and are not indexed for inflation, so more retirees cross them every year. Content reflects September 2026; confirm current law before filing.
This tool gives a general estimate and does not determine your actual tax. Deductions, credits, other income timing and state rules all change the outcome, so review your return with a tax professional.
Frequently asked questions
No. At most 85% of the benefit amount is included in taxable income; that included amount is then taxed at your ordinary rate. Nobody pays tax on more than 85% of benefits, and many retirees include nothing at all.
Provisional income under 26 U.S.C. sec. 86 adds tax-exempt interest back in, so muni bonds can push more of your benefits into taxable income even though the interest itself stays untaxed.
Most states do not, but a few still tax part of the benefit and the rules change often. This calculator estimates federal tax only, so check your state revenue department for state treatment.