Updated October 25, 2026. Quick answer: In 2026 Social Security withholds benefits from workers under full retirement age who earn more than $24,480. In the year you reach full retirement age the limit is $65,160, counting only earnings before the month you reach it. SSA withholds $1 for every $2 over the lower limit and $1 for every $3 over the higher one.
More on the 2026 tax figures: the Social Security wage base for 2026.
Related reading on this site: Form SSA-521 to withdraw an application and Form SSA-1-BK retirement application.
2026 earnings test exempt amounts
| Situation | 2026 exempt amount | Benefits withheld |
|---|---|---|
| Under full retirement age all year | $24,480 | $1 for every $2 over |
| Year you reach full retirement age | $65,160 | $1 for every $3 over |
The SSA uses NRA as its abbreviation for normal retirement age, also called full retirement age. It says “For people attaining NRA after 2026, the annual exempt amount in 2026 is $24,480. For people attaining NRA in 2026, the annual exempt amount is $65,160.” It adds that the higher amount “applies only to earnings made in months prior to the month of NRA attainment.”
How much is withheld
The rule is “We withhold $1 in benefits for every $2 of earnings in excess of the lower exempt amount. We withhold $1 in benefits for every $3 of earnings in excess of the higher exempt amount.” Computed example one: a worker under full retirement age all year who earns $34,480 is $10,000 over the limit, so $5,000 of benefits is withheld. Computed example two: a worker who reaches full retirement age in 2026 and earns $75,160 before that month is $10,000 over, so about $3,333 is withheld.
How the limits are calculated
SSA sets the limits by formula and prints the arithmetic in its Federal Register notice. For the lower limit: “Multiplying the 1994 retirement earnings test monthly exempt amount of $670 by the ratio of the national average wage index for 2024 ($69,846.57) to that for 1992 ($22,935.42) produces $2,040.39. We round this to $2,040.” Recomputed here, $670 times $69,846.57 divided by $22,935.42 is $2,040.39, which rounds to $2,040 a month, and $2,040 times 12 is $24,480.
For the higher limit the notice says “Multiplying the 2002 retirement earnings test monthly exempt amount of $2,500 by the ratio of the national average wage index for 2024 ($69,846.57) to that for 2000 ($32,154.82) produces $5,430.49. We round this to $5,430.” Recomputed here, $2,500 times $69,846.57 divided by $32,154.82 is $5,430.49, which rounds to $5,430 a month, and $5,430 times 12 is $65,160. The notice confirms “The lower annual exempt amount is $24,480 under the retirement earnings test.” and “The higher annual exempt amount is $65,160 under the retirement earnings test.”
Withheld benefits are not lost
The SSA says withheld benefits are not lost. “Once you reach NRA, your monthly benefit will be increased permanently to account for the months in which benefits were withheld.”
Recent exempt amounts
| Year | Lower amount | Higher amount |
|---|---|---|
| 2025 (computed from SSA’s monthly amounts of $1,950 and $5,180) | $23,400 | $62,160 |
| 2026 | $24,480 | $65,160 |
| 2027 (announced October 14, 2026) | $25,560 | $67,920 |
The Federal Register notice calls $1,950 and $5,180 the current monthly exempt amounts, before the 2026 update. SSA has since published the 2027 amounts on its exempt-amounts page and in its 2027 COLA fact sheet, announced October 14, 2026: $25,560 a year ($2,130 a month) for people under full retirement age all year and $67,920 a year ($5,660 a month) in the year you reach full retirement age.
Common mistakes
- Thinking the limit applies after full retirement age. Earnings in or after that month do not count.
- Treating withheld benefits as lost. They are credited back through a higher benefit.
- Using the $65,160 limit for the whole year. It applies only to months before full retirement age.
Related: the 2027 earnings test page, the Social Security wage base, and the 2027 COLA page.
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Sources
- Social Security Administration, Exempt Amounts Under The Earnings Test: https://www.ssa.gov/oact/cola/rtea.html
- Social Security Administration, Cost-of-Living Increase and Other Determinations for 2026 (Federal Register notice, Nov. 3, 2025): https://www.federalregister.gov/documents/2025/11/03/2025-19763/cost-of-living-increase-and-other-determinations-for-2026
- The same Social Security Administration notice, as printed in the Federal Register (PDF, 90 FR, Nov. 3, 2025): https://www.govinfo.gov/content/pkg/FR-2025-11-03/pdf/2025-19763.pdf
- Social Security Administration, 2027 Cost-of-Living Adjustment (COLA) Fact Sheet: https://www.ssa.gov/news/en/cola/factsheets/2027.html
Sources: the primary documents linked above, read on October 1, 2026, and the 2027 SSA documents on October 25, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.