Social Security Taxable Benefits 2027 Calculator

How Social Security benefits are taxed in 2027

Up to 85% of your federal Social Security retirement, survivor, or disability benefits can be subject to federal income tax depending on your "provisional income" (also called "combined income"). The taxability formula has not changed since the 50% tier was added in 1983 and the 85% tier in 1993. The thresholds are NOT indexed for inflation, so each year more retirees cross them as benefits and other income rise nominally.

Provisional income = AGI (excluding Social Security) + ½ of Social Security benefits + tax-exempt interest. Compare to:

Single, HoH, or Qualifying Widow(er): 0% taxable if ≤ $25,000 — up to 50% taxable between $25,000 and $34,000 — up to 85% taxable above $34,000. Married Filing Jointly: 0% if ≤ $32,000 — up to 50% between $32,000 and $44,000 — up to 85% above $44,000. Married Filing Separately living together: 85% taxable from dollar one — no 0% bracket. MFS living apart all year: treated like Single.

The 50/85% taxability formula (Pub 915 worksheet)

For provisional income in the 50% tier (between the two thresholds), the taxable amount is the smaller of: (a) 50% of benefits, or (b) 50% of (provisional income − first threshold). For income above the second threshold, the taxable amount adds 85% of the excess, capped at 85% of total benefits.

Example: Single retiree with $28,000 Social Security and $30,000 from an IRA, zero tax-exempt interest. Provisional income = $30,000 + ½ × $28,000 = $44,000. That's above the $34,000 second threshold by $10,000. Taxable Social Security = smaller of (a) 85% × $28,000 = $23,800, or (b) 85% × $10,000 + smaller of ($9,000 50%-tier excess × 50% = $4,500 or $14,000 50% of benefits) = $8,500 + $4,500 = $13,000. Final taxable: $13,000.

OBBB 2026 changes — the "senior bonus deduction"

The One Big Beautiful Bill (P.L. 119-21) did not change the 0/50/85% Social Security taxability formula. However, OBBB created a separate $6,000 per-person additional standard deduction for taxpayers age 65 and older (applies to tax years 2025 through 2028). This deduction effectively lowers AGI-driven thresholds for many seniors, indirectly reducing how much SS is taxable. The deduction phases out at higher incomes (MAGI > $75,000 single / $150,000 MFJ).

State tax treatment varies: only 9 states tax Social Security benefits at all in 2027 (CT, CO, MN, MT, NM, RI, UT, VT, WV) — down from 11. Most states fully exempt Social Security. Even states that tax it usually have higher income thresholds than the federal $25,000/$32,000. Use this calculator only for the federal portion and add state separately based on your residency.

Source: irs.gov — Publication 915 (Social Security Benefits) and Form 1040 instructions. Updated May 2026 reflecting OBBB (P.L. 119-21).