How is Social Security taxed?
Up to 85% of your Social Security benefit can be subject to federal income tax, based on your "combined income": adjusted gross income plus nontaxable interest plus half of your Social Security. For 2026, up to 50% of benefits are taxable when combined income falls between $25,000 and $34,000 (single) or $32,000 and $44,000 (joint), and up to 85% above those amounts. Florida does not tax Social Security, and no state income tax applies here at all.
Last reviewed August 17, 2026 · Published August 17, 2026 · Mere Benefits Data Desk
Two things surprise people about these rules. First, the thresholds are not indexed for inflation. They have been frozen since the 1980s and 1990s, so every cost-of-living raise pushes more retirees over them. Second, “up to 85% taxable” does not mean an 85% tax. It means at most 85% of your benefit is counted as taxable income, which is then taxed at your ordinary rate. Nobody loses 85 cents of a benefit dollar to this tax.
The combined income thresholds (not indexed)
| Filing status | Combined income | Portion of benefits taxable |
|---|---|---|
| Single | Under $25,000 | 0% |
| Single | $25,000 to $34,000 | Up to 50% |
| Single | Over $34,000 | Up to 85% |
| Married filing jointly | Under $32,000 | 0% |
| Married filing jointly | $32,000 to $44,000 | Up to 50% |
| Married filing jointly | Over $44,000 | Up to 85% |
Combined income = your adjusted gross income + nontaxable interest (such as municipal bond interest) + one half of your annual Social Security benefit.
A worked example for 2026
A single Jacksonville retiree receives $24,000 per year in Social Security and withdraws $22,000 from a traditional IRA. Combined income is $22,000 + $12,000 (half of the benefit) = $34,000. That sits at the top of the 50% band, so a portion of the benefit, calculated on the IRS worksheet, up to half of it, lands on the tax return as ordinary income. Pull an extra $10,000 from the IRA and combined income jumps to $44,000, deep into the 85% tier. This is why the timing and source of retirement withdrawals (traditional IRA versus Roth versus cash savings) can change how much of your Social Security gets taxed each year.
The 2025-2028 senior deduction softens the blow
The 2025 federal tax law did not change the thresholds above, but for tax years 2025 through 2028 it added a new deduction of up to $6,000 per person age 65 or older ($12,000 for a couple where both qualify), on top of the regular standard deduction. It phases out at 6 cents per dollar of modified adjusted gross income above $75,000 (single) or $150,000 (joint), disappearing entirely at $175,000 and $250,000 respectively, per the IRS. For many middle-income retirees this deduction offsets most or all of the tax that the combined-income formula generates, though the benefit ends after 2028 under current law.
One more piece of good news for Florida residents: there is no state income tax, so Social Security is never taxed at the state level here. Here’s the mistake I see people make: assuming their benefit is automatically tax free and skipping withholding, then meeting a surprise bill in April. You can file Form W-4V to have federal tax withheld from your benefit, depending on your situation, and avoid the scramble.
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