Many retirees ask the same question during tax season: Will my Social Security be taxed in 2025? The answer depends on your total income and how you file your return.
The IRS still uses outdated thresholds from the 1980s, which cause many recipients to pay taxes on their benefits—especially those with other sources of retirement income.
Yes, Social Security benefits are taxable in 2025
Social Security remains subject to federal income tax if your income crosses certain limits. The IRS calculates “combined income” by adding your adjusted gross income, nontaxable interest, and half of your Social Security benefits.
If this total exceeds IRS thresholds, you must report part of your benefits as taxable income.
Current 2025 thresholds:
| Filing Status | Income Threshold | Portion Taxed |
|---|---|---|
| Single | Over $25,000 | Up to 50–85% |
| Married Filing Jointly | Over $32,000 | Up to 50–85% |
| Married Filing Separately | Most cases | Up to 85% |
These limits haven’t changed since 1984, so more retirees fall into the taxable range each year—even with modest incomes.
Which states tax Social Security?
While most states exclude Social Security from income tax, 11 states currently apply their own rules. Each state sets different exemptions or phaseouts based on income.
States that may tax benefits include:
- Colorado
- Connecticut
- Kansas
- Minnesota
- Missouri
- Montana
- Nebraska
- New Mexico
- Rhode Island
- Utah
- Vermont
Visit your state’s tax agency to confirm whether you owe anything.
How much tax could you owe?
Let’s break it down with an example.
A single retiree receives $18,000 in benefits and $20,000 in pension income. Their combined income totals $29,000. That crosses the $25,000 threshold, so the IRS will tax up to 50% of their Social Security.
This doesn’t mean they lose 50% of the check. It means that half of their benefits count as taxable income, which the IRS taxes at their regular rate.
Are lawmakers trying to change this?
Yes. Some members of Congress support raising the income thresholds and indexing them for inflation.
The proposed COLA Reform Act of 2025 would raise the thresholds to:
- $35,000 for single filers
- $50,000 for joint filers
These changes would take effect in 2026 if Congress passes the bill. For now, retirees must follow the current rules.
How to avoid or reduce Social Security taxes
You can lower your taxable income with these strategies:
- Delay collecting benefits until age 70
- Use Roth IRAs or HSA funds, which don’t count toward combined income
- Donate directly from your IRA to charity with a QCD
- Limit withdrawals from traditional retirement accounts when possible
Tax-efficient planning can reduce or eliminate taxes on your benefits.
What to do before filing
Check your income totals carefully:
- Use the IRS tool to estimate how much of your benefits are taxable
- Review Form SSA-1099, which lists your total annual benefit
- Compare your numbers to the IRS thresholds based on your filing status
A tax advisor can help build a retirement income plan that minimizes taxation long-term.
To learn more, visit ssa.gov or irs.gov and consult your tax professional before filing.
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