How Much Can a Retired Person Earn Without Paying Taxes?

How much a retired person can earn without paying taxes depends on several factors, including the type of income, total earnings and filing status. Social Security benefits may not be taxable at all below certain income thresholds and standard deductions can offset a portion of other income. For 2025, a single filer age 65 or older can typically earn up to $17,000 in gross income before owing federal income tax thanks to an enhanced standard deduction. However, specific rules apply when combining Social Security and other income sources.

A financial advisor can help you build a retirement plan that accounts for both income needs and tax efficiency.

Can Retirees Ever Stop Filing Taxes?

Some retirees may no longer need to file a federal tax return, depending on their income level, filing status, and age. The IRS sets annual thresholds based on the standard deduction to determine when a return is required.

For 2025, the standard deduction is $15,000 for single filers and $30,000 for married couples filing jointly. Individuals age 65 and older qualify for an additional deduction—$2,000 for single filers and $1,600 per person for married couples. That means a single filer age 65 or older typically doesn’t need to file unless gross income exceeds $17,000, while a married couple filing jointly with both spouses 65 or older can have up to $33,200 in gross income before a return is required.

Social Security benefits alone often do not trigger a filing requirement, especially if there’s little to no other income. However, if part of those benefits becomes taxable due to additional income—such as a pension, IRA distributions or investment earnings—then filing may still be required. Withdrawals from tax-deferred accounts like traditional IRAs usually count as taxable income.

For those with an income below the listed thresholds, you may not have to pay taxes. But even if you don’t have to file your taxes, it’s usually your best interest to file anyways. That’s because you might qualify for a tax return, which could represent a big boost for your budget.

If you aren’t sure whether or not you can stop filing taxes, the IRS has a helpful tool to help you find out. But talk to a financial advisor before deciding to skip filing your taxes. It could mean missing potential benefits.

Are Social Security Benefits Taxable?

Social Security benefits can be taxable depending on your income and filing status. To determine whether you owe taxes on your benefits, the IRS adds 50% of your annual Social Security income to all other income, including wages, pensions, withdrawals from tax-deferred accounts, investment earnings and tax-exempt interest. If this “combined income” exceeds certain thresholds, a portion of your benefits becomes taxable.

For single filers, taxes apply if the combined income is over $25,000. For married couples filing jointly, the threshold is $32,000. Up to 50% of benefits are taxable if combined income is between $25,000 and $34,000 (single) or $32,000 and $44,000 (married filing jointly). Once combined income surpasses $34,000 for single filers or $44,000 for joint filers, up to 85% of benefits may be taxable.

For example, a single filer with $20,000 in benefits and $20,000 in earnings from a job would have a combined income of $30,000—triggering taxes on part of their benefits. But a married couple filing jointly with $20,000 in benefits and $20,000 from other income would fall below the $32,000 threshold and owe no federal tax on their benefits.

States That Tax Social Security Benefits

Social Security recipients in certain states need to be aware of their state’s tax requirements. There are nine states that tax Social Security benefits in 2025:

• Colorado
• Connecticut
• Minnesota
• Montana
• New Mexico
• Rhode Island
• Utah
• Vermont
• West Virginia (will phase out tax on benefits by 2026)

However, these states allow for some kind of deduction, credit or income limit to minimize the tax burden at a state level.

Strategies to Stay Below the Tax Threshold

There are several ways retirees may be able to minimize or avoid federal income taxes legally:

• Use Roth IRAs strategically: Withdrawals aren’t taxable and don’t affect Social Security taxation.
• Time withdrawals carefully: In low-income years, it may make sense to take more from tax-deferred accounts.
• Harvest capital gains: If total taxable income falls below a certain level, long-term capital gains may be taxed at 0%.
• Split income between years: Delaying income or spreading it across tax years can reduce combined income.
• Convert to Roth IRA: Doing small Roth conversions in lower-income years may reduce future required minimum distributions (RMDs).

Bottom Line

Earning in retirement doesn’t always trigger a tax bill, especially when income is modest and drawn from a mix of sources like Social Security and Roth accounts. Understanding how different types of income are treated under federal and state rules can help retirees keep more of what they receive. With the right timing and strategy, it’s possible to limit or avoid taxes altogether, depending on personal circumstances.

Retirement Tax Planning Tips

• Consider working with a financial advisor as you coordinate your earnings with your tax planning. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Our income tax calculator can help you understand marginal and effective tax rates and your annual tax liability.

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