At What Age Is Social Security No Longer Taxed?

Many people assume that once they hit a certain age, their Social Security payments stop being taxed. That’s not true. There’s no magic birthday when the IRS suddenly says, ‘You’re free now.’ The truth is, whether or not your Social Security benefits are taxed depends on your total income-not your age.

There’s no age when Social Security stops being taxed

You might hear someone say, ‘After 70, you don’t pay tax on Social Security.’ Or, ‘Once you’re 62, it’s all tax-free.’ Neither is accurate. The IRS doesn’t look at your age to decide if your benefits are taxable. Instead, they look at your combined income.

Combined income is your adjusted gross income (AGI) + nontaxable interest + half of your Social Security benefits. That’s it. No matter if you’re 65, 75, or 85, if your combined income crosses the IRS thresholds, part of your Social Security check will still be taxed.

Here’s how it breaks down:

• If you file as single and your combined income is between $25,000 and $34,000, up to 50% of your benefits may be taxable.
• If your combined income is over $34,000, up to 85% of your benefits may be taxed.
• If you’re married filing jointly and your combined income is between $32,000 and $44,000, up to 50% of your benefits may be taxed.
• If your combined income is over $44,000, up to 85% of your benefits may be taxed.

These thresholds haven’t changed since 1984. They haven’t been adjusted for inflation. That means more retirees today are getting taxed on their benefits than ever before-even if they’re living on a modest income.

Why your other income matters more than your age

Let’s say you’re 72 and retired. You get $20,000 a year from Social Security. You also have a small pension that pays $12,000. You withdraw $8,000 from your IRA. You have $1,000 in interest from savings.

Your combined income? $20,000 (Social Security) ÷ 2 = $10,000. Add $12,000 (pension) + $8,000 (IRA) + $1,000 (interest) = $31,000. Your total combined income is $41,000.

That puts you over the $34,000 single filer limit. So up to 85% of your Social Security benefits-$17,000-could be taxed. Even though you’re well past retirement age, you’re still paying federal taxes on your benefits.

On the flip side, if you’re 68 and only get $18,000 from Social Security and nothing else, your combined income is $9,000. That’s below the $25,000 threshold. No taxes on your benefits. Age doesn’t matter. Income does.

State taxes are a different story

While the federal government might tax your Social Security, your state might not. Twenty-nine states don’t tax Social Security benefits at all. That includes big ones like California, Texas, Florida, and New York.

But 13 states do tax them-some fully, some partially. States like Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia all have some form of state tax on Social Security. Rules vary. In Colorado, for example, you can subtract a portion of your benefits from taxable income. In Vermont, it’s based on federal rules.

If you’re thinking of moving in retirement, check your state’s rules. A lower cost of living doesn’t help if your benefits are getting chopped by state taxes.

How to reduce or avoid taxes on Social Security

You can’t change your age. But you can change your income strategy. Here’s how:

• Delay taking Social Security. If you wait until 70, your monthly benefit increases by up to 8% per year after your full retirement age. That means you might need to withdraw less from taxable accounts like IRAs or 401(k)s, keeping your combined income lower.
• Use Roth accounts. Roth IRA withdrawals are tax-free and don’t count toward your combined income. Converting traditional IRA funds to a Roth over time-especially in low-income years-can help you control your future tax bill.
• Manage your withdrawals. If you’re taking money from a traditional 401(k) or IRA, consider spreading it out. A $20,000 withdrawal in one year could push you over the tax threshold. Splitting it into two years might keep you under the limit.
• Reduce taxable interest and dividends. Hold investments that generate qualified dividends or long-term capital gains, which are taxed at lower rates. Or keep some money in tax-free municipal bonds, which don’t count in your combined income.
• Delay required minimum distributions (RMDs). If you’re still working past 73, you can delay RMDs from your current employer’s 401(k). That gives you a few extra years to control your income.

These aren’t tricks. They’re smart, legal ways to lower your taxable income so more of your Social Security stays in your pocket.

What happens if you keep working after claiming benefits?

If you claim Social Security before your full retirement age and still earn income, your benefits can be reduced. But that’s not the same as taxation.

Once you hit your full retirement age (67 for people born in 1960 or later), your earnings no longer reduce your benefits. But your benefits can still be taxed if your total income is high enough.

So yes, you can work past 70 and still get taxed on your Social Security. The IRS doesn’t care if you’re still employed. They only care about your total income.

Why this confusion exists

People mix up two different rules:

• Benefit reduction (before full retirement age) - your payments are cut if you earn too much.
• Taxation (at any age) - your benefits are taxed if your income is too high.

They’re unrelated. One ends at your full retirement age. The other never ends.

Plus, Social Security statements and online calculators often don’t mention taxes. They show your monthly benefit, not your after-tax amount. That leaves many retirees surprised when they get a tax bill.

What you should do now

Don’t wait until you’re 70 to find out your benefits are being taxed. Do this:

1. Estimate your total retirement income: Social Security, pensions, IRA/401(k) withdrawals, investment income.
2. Add half of your Social Security benefit to that total.
3. Compare it to the IRS thresholds: $25,000 for single, $32,000 for married.
4. If you’re close to or over the limit, talk to a tax pro about adjusting your withdrawal strategy.
5. Consider Roth conversions in low-income years-like the years after you retire but before you start RMDs.

There’s no age when Social Security becomes tax-free. But there are plenty of ways to make sure you keep more of it.