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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 2026, a single filer age 65 or older can typically earn up to $18,150 in gross income before owing federal income tax thanks to an enhanced standard deduction. Furthermore, an additional deduction created under One Big Beautiful Bill Act of 2025 will allow people 65 and older to deduct another $6,000. 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 2026, the standard deduction is $16,100 for single filers and $32,200 for married couples filing jointly. Individuals age 65 and older qualify for an additional deduction: $2,050 for single filers and $1,650 per person for married couples. That means a single filer age 65 or older typically doesn’t need to file unless gross income exceeds $18,150, while a married couple filing jointly with both spouses 65 or older can have up to $35,500 in gross income before a return is required.
A provision of the One Big Beautiful Bill Act signed into law in July 2025 created a temporary $6,000 deduction for eligible seniors ages 65 and older ($12,000 for married couples filing jointly). The deduction, which will be available for tax years 2025 through 2028, is subject to income limits.
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 like pension payments, IRA distributions or investment earnings, then filing may still be required. Withdrawals from tax-deferred accounts like traditional IRAs usually count as taxable income.
You can estimate your tax liability based on your income and filing status using our calculator:
Income Tax Calculator
Calculate your federal, state and local taxes for the 2025 tax year.
Your 2025 Total Income Taxes
Federal Income & FICA Taxes
State Taxes
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About This Calculator
Our income tax calculator calculates your federal, state and local taxes based on several key inputs: your household income, location, filing status and number of personal exemptions.
How Income Taxes Are Calculated
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First, we calculate your adjusted gross income (AGI) by taking your total household income and reducing it by certain items such as contributions to your 401(k).
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Next, from AGI we subtract exemptions and deductions (either itemized or standard) to get your taxable income. Exemptions can be claimed for each taxpayer.
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Based on your filing status, your taxable income is then applied to the tax brackets to calculate your federal income taxes owed for the year.
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Your location will determine whether you owe local and / or state taxes.
When Do We Update? - We check for any updates to the latest tax rates and regulations annually.
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Assumptions
Deductions
- "Other Pre-Tax Deductions" are not used to calculate state taxable income.
Credits
- The only federal credit automatically calculated is the Savers Credit, depending on your eligibility.
- We do not apply any refundable credits, like the Child Tax Credit or Earned Income Tax Credit (EITC).
- We do not apply state credits in our calculations.
Itemized Deductions
- If itemizing at the federal level, you may need to itemize at the state level too. Some states don't allow itemized deductions, which is accounted for in our calculations.
- When calculating the SALT deduction for itemized deductions, we use state and local taxes, and we assume your MAGI.
- We assume that there is no cap to itemized deductions, if a state allows them.
- We do not categorize itemized deductions (such as medical expenses or mortgage interest), which could be subject to specific caps per state.
Local Tax
- Depending on the state, we calculate local taxes at the city level or county level. We do not include local taxes on school districts, metro areas or combine county and city taxes.
- With the exception of NYC, Yonkers, and Portland/Multnomah County, we assume local taxes are a flat tax on either state taxable income or gross income.
Actual results may vary based on individual circumstances and changes in tax laws or IRS regulations. Estimates provided by this calculator do not guarantee income tax amounts or rates. Past performance is not indicative of future results.
SmartAsset.com does not provide legal, tax, accounting or financial advice (except for referring users to third-party advisers registered or chartered as fiduciaries ("Adviser(s)") with a regulatory body in the United States). Articles, opinions and tools are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual. Users should consult their accountant, tax advisor or legal professional to address their particular situation.
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.
| Filing Status | Combined Income | Taxable Portion of Benefits |
|---|---|---|
| Single | $25,000 or less | None |
| $25,000–$34,000 | Up to 50% | |
| Over $34,000 | Up to 85% | |
| Married Filing Jointly | $32,000 or less | None |
| $32,000–$44,000 | Up to 50% | |
| Over $44,000 | Up to 85% |
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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