Do Tax Brackets Include Social Security?

Tax Brackets and Social Security

As a taxpayer, total income determines your highest tax bracket. Social Security benefits are included in that total income, as reported on Form 1040. Your taxable income is your gross income minus all allowable deductions.

A portion of your Social Security benefits may be subject to federal taxation. In fact, up to 85% of your benefits may be taxable if your total income meets a certain threshold amount noted by the Internal Revenue Service (IRS).

What Portion of Social Security Is Subject to Income Tax?

The formula for determining whether your Social Security benefits are taxable is:

½ of Social Security benefits + all other income, including tax-exempt interest

If the result is from $25,000 to $34,000, those filing as single may have to pay federal income tax on up to 50% of benefits. If your income is greater than $34,000, you may pay taxes on up to 85% of your benefits.

For married couples filing jointly, if your income is $32,000 to $44,000, you may pay federal income tax on up to 50% of your benefits. If your income is greater than $44,000, you may pay taxes on up to 85% of your benefits.

Married couples who live together but file separately will most likely pay taxes on the total amount of their benefits.

You can review IRS Publication 915 for the process of calculating this amount. As mentioned above, you must include your Social Security benefits on your Form 1040 tax return as ordinary income after calculating the appropriate amount.

An individual whose only source of income is their Social Security benefit usually doesn’t have to pay federal income tax on that amount.

What Is Ordinary Income?

Ordinary income represents most of your household’s taxable income from sources such as wages, self-employment, pensions, Social Security benefits, rents, royalties, and interest.

Other forms of household income such as capital gains and qualified dividends are not considered ordinary income. They’re taxed at different rates.

How Is Ordinary Income Taxed?

All sources of ordinary income are added together and then all allowed deductions are subtracted from this total. What remains is subject to tax as determined by federal tax brackets and IRS tax tables.

The tax brackets for the 2025 tax year for individuals and married couples filing jointly are:

• 10% for incomes of $11,925 or less ($23,850 or less for married couples)
• 12% for incomes over $11,925 (over $23,850 for married couples)
• 22% for incomes over $48,475 (over $96,950 for married couples)
• 24% for incomes over $103,350 (over $206,700 for married couples)
• 32% for incomes over $197,300 (over $394,600 for married couples)
• 35% for incomes over $250,525 (over $501,050 for married couples)
• 37% for income over $626,350 (over $751,600 for married couples)

The tax brackets for the 2024 tax year for individuals and married couples filing jointly were:

• 10% for income of $11,600 or less ($23,200 for married couples)
• 12% for incomes over $11,600 (over $23,200 for married couples)
• 22% for incomes over $47,150 (over $94,300 for married couples)
• 24% for incomes over $100,525 (over $201,050 for married couples)
• 32% for incomes over $191,950 (over $383,900 for married couples)
• 35% for incomes over $243,725 (over $487,450 for married couples)
• 37% for incomes over $609,350 (over $731,200 for married couples)

States That Tax Social Security Benefits

Most states do not tax Social Security benefits. However, the nine states below do so, as of the 2024 tax year.

• Colorado: Excludes some pension and annuity payments from income taxes, including Social Security benefits. Residents who are at least age 55 as of the last day of the tax year but under age 65 can exclude the smaller of $20,000 or the amount of the pension payment. Those who are 65 or older can subtract the full amount of Social Security benefits included in their federal taxable income if they are over $24,000.
• Connecticut: Exempts Social Security benefits from taxation if you’re a single filer with an adjusted gross income (AGI) of less than $75,000. If you’re married and filing jointly with an AGI of less than $100,000, benefits are not taxed. If your income is greater than these thresholds, your benefits are subject to tax of no more than 25%.
• Minnesota: Individual taxpayers with AGIs of up to $82,190 and couples filing jointly with AGIs up to $105,380 do not have to pay state taxes on their Social Security income for tax year 2024.
• Montana: Taxes Social Security benefits according to the same thresholds used by the federal government.
• New Mexico: The Social Security benefits of recipients with AGIs of less than $100,000 (for individuals), $150,000 (for couples filing jointly), and $75,000 (for married couples filing separately) are not taxed by the state.
• Rhode Island: Does not tax benefits for retirees who have reached full retirement age and have an AGI of less than $101,000 (for individuals) or $126,250 (for married couples filing jointly).
• Utah: Offers a non-refundable tax credit of up to $450 against retirement income for those born on or before Dec. 31, 1952. The credit phases out at $25,000 for single filers, $32,000 for married couples filing jointly, and $16,000 for married couples filing separately.
• Vermont: Offers a full exemption for single filers with AGIs up to $50,000 and for married couples filing jointly with AGIs up to $65,000.
• West Virginia: Recipients of Social Security payments can deduct 35% of their benefits amount from their taxable income. For tax years 2025 and 2026, that amount rises to 65% and 100%, respectively.

The Bottom Line

You may be subject to a federal tax of 50% or 85% on your Social Security benefits, depending on your overall income. A portion of your Social Security benefit is combined with your other taxable income to determine if your Social Security benefits are taxable.