How the Social Security earnings test works in 2026
The retirement earnings test applies only if you're younger than full retirement age (FRA) and receiving retirement (or survivors) benefits. If your earnings go over SSA's limit for the year, SSA withholds part of your benefits. There are two limits, and which one you use depends on when you reach FRA.
| Your situation in 2026 | Yearly limit | Monthly limit (first-year rule) | Withholding |
|---|---|---|---|
| Under FRA for all of 2026 | $24,480 | $2,040 | $1 for every $2 over |
| Reach FRA during 2026 | $65,160 (earnings before your FRA month only) | $5,430 | $1 for every $3 over |
| From the month you reach FRA | No limit | — | None |
Sources: SSA, Exempt Amounts Under the Earnings Test; SSA 2026 COLA Fact Sheet (monthly amounts); SSA, Receiving Benefits While Working.
Step by step
- Find your full retirement age. It's 67 if you were born in 1960 or later (see the table below).
- Pick the limit. Under FRA all year: $24,480. Reaching FRA this year: $65,160, and only earnings in the months before your FRA month count.
- Subtract. Earnings counted minus the limit = the amount over.
- Divide. Divide the amount over by 2 (under FRA) or 3 (FRA year). SSA rounds down to the dollar. That's how much SSA withholds.
- Whole checks. SSA usually collects it by holding back whole monthly checks from the start of the year (or your first benefit month), then pays back any extra later.
Rounding and month-by-month charging: SSA POMS RS 02501.080 and RS 02501.095.
How SSA withholds benefits: whole months, not a little each check
SSA doesn't shave a few dollars off every payment. It applies the amount to withhold against each monthly benefit, starting with your first month of benefits in the year, until it's covered — and it doesn't carry anything into the next year. Because it holds back whole checks, it may withhold a bit more than needed; SSA pays the extra back afterward. SSA's own example: with a $600 benefit and $800 to withhold, it holds the January and February checks, pays from March on, and returns the extra $400 the following year.
During the year, SSA works from the earnings estimate you give it, then settles up after the year ends based on your actual earnings. If your expected earnings change, SSA asks you to tell it right away.
Source: SSA Publication 05-10069, How Work Affects Your Benefits.
The first-year special rule (monthly limit)
People who retire partway through a year have often already earned more than the yearly limit. So SSA has a special rule for one year — usually your first year of retirement: you can get a full check for any whole month you're considered retired, regardless of your yearly earnings. In 2026 you're considered retired in a month if your wages are $2,040 or less ($5,430 in the year you reach FRA) and you don't perform substantial services in self-employment. SSA calls these “non-service months.”
SSA's example: someone retires at 62 on October 30, 2026, after earning $45,000, then takes a part-time job paying $500 a month. Even though their 2026 earnings are far above $24,480, they get their November and December payments. From 2027 on, only the yearly limit applies.
Sources: SSA Publication 05-10069; POMS RS 02501.030.
What counts as earnings — and what doesn't
Counts
- Wages from a job, including bonuses, commissions and vacation pay
- Net earnings (net profit) from self-employment
- Your own pension or retirement-plan contributions if they're included in your gross wages
Doesn't count
- Pensions and annuities
- Investment income, interest and capital gains
- Veterans benefits
- Other government or military retirement benefits
Timing: wages count when they're earned, not when paid. Self-employment income counts when it's received. In the year you reach FRA, SSA spreads net self-employment earnings evenly across the months you were self-employed and counts only the months before FRA.
Sources: SSA, Receiving Benefits While Working; Publication 05-10069; POMS RS 02501.080.
Withheld benefits aren't lost
According to SSA, benefits withheld because of work are not lost. When you reach full retirement age, SSA recalculates your monthly benefit to give you credit for the months it withheld, so your payment is higher from then on. SSA's illustration: someone who claims at 62 with a $910 benefit and has 12 months withheld would be paid $975 a month at FRA (in today's dollars).
Sources: SSA, Exempt Amounts Under the Earnings Test; Publication 05-10069.
Full retirement age by birth year
| Year of birth | Full retirement age |
|---|---|
| 1943–1954 | 66 |
| 1955 | 66 and 2 months |
| 1956 | 66 and 4 months |
| 1957 | 66 and 6 months |
| 1958 | 66 and 8 months |
| 1959 | 66 and 10 months |
| 1960 and later | 67 |
Born on January 1? Use the previous year. Born on the 1st of any month? SSA figures your full retirement age as if your birthday were in the previous month. Survivors: for the earnings test, SSA uses your full retirement age for retirement benefits.
Sources: SSA, Normal Retirement Age; SSA, Starting Your Retirement Benefits Early.
Worked examples
The first four are SSA's own published 2026 examples; the calculator reproduces each one (and our automated tests check them).
1. Under full retirement age all year
Benefit $800 a month ($9,600 for the year). Earns $33,400 — $8,920 over the $24,480 limit. $8,920 ÷ 2 = $4,460 withheld; receives $5,140 for the year. Collected as whole checks, that's January–June ($4,800) with payments resuming in July, and the extra $340 paid back later.
SSA example: Receiving Benefits While Working. Month-by-month split is RetireTally's illustration of SSA's whole-check method.
2. Reaching full retirement age in August 2026
Benefit $800 a month. Earns $72,000 for the year, $66,000 of it January–July — $840 over $65,160. $840 ÷ 3 = $280 withheld; receives $5,320 of $5,600 for January–July, then the full $800 a month from August no matter how much they earn.
SSA example: Receiving Benefits While Working.
3. Claiming at 62 in January 2026
Benefit $600 a month ($7,200 for the year). Plans to earn $26,080 — $1,600 over the limit. SSA withholds $800 by holding the January and February checks; payments resume in March, and SSA pays back the extra $400 in 2027.
SSA example: Publication 05-10069.
4. Retiring mid-year (first-year rule)
Retires at 62 on October 30, 2026, after earning $45,000, then earns $500 a month part-time. November and December wages are under the $2,040 monthly limit, so those checks are paid in full despite high yearly earnings.
SSA example: Publication 05-10069.
5. Self-employed, reaching FRA in August 2026
Net self-employment earnings of $120,000 for the year, self-employed all year, benefit $1,500 a month. SSA spreads the net earnings evenly: $10,000 a month × 7 months before August = $70,000 counted. $70,000 − $65,160 = $4,840 over; ÷ 3 = $1,613 withheld (rounded down). Whole checks: January and February ($3,000), with about $1,387 paid back later.
RetireTally example applying SSA's proration rule in POMS RS 02501.080 to the 2026 limit.
Frequently asked questions
What is the Social Security earnings limit for 2026?
If you are under full retirement age for all of 2026, the limit is $24,480, and SSA withholds $1 in benefits for every $2 you earn above it. In the year you reach full retirement age, the limit is $65,160, SSA withholds $1 for every $3 above it, and only earnings before the month you reach full retirement age count.
Does the earnings test apply after full retirement age?
No. Beginning with the month you reach full retirement age, SSA says your earnings no longer reduce your benefits, no matter how much you earn.
Do pensions or investment income count toward the limit?
No. SSA counts only wages from a job (including bonuses, commissions and vacation pay) and net earnings from self-employment. It does not count pensions, annuities, investment income, interest, capital gains, veterans benefits, or other government or military retirement benefits.
Are benefits withheld because of work lost forever?
No. SSA says withheld benefits are not lost: when you reach full retirement age, it recalculates your benefit to give you credit for the months benefits were withheld, so your monthly payment goes up from then on. (There is an exception for some spouses and survivors who receive benefits because they have a minor or disabled child in their care.)
Why would SSA hold back more than the amount I owe?
SSA withholds whole monthly checks, starting with your first benefit month of the year, until the amount is covered. If the last withheld check is more than needed, the extra is paid back later. In SSA's own example, $800 was owed, the January and February $600 checks were withheld, and the extra $400 was paid in the following year.
What is the monthly limit in my first year of retirement?
SSA has a special rule, usually for the first year of retirement, that pays a full check for any whole month you are considered retired, regardless of yearly earnings. In 2026 you are considered retired in a month if your wages are $2,040 or less (or $5,430 or less in the year you reach full retirement age) and you don't perform substantial services in self-employment.
I'm self-employed. What counts, and when?
SSA counts your net earnings from self-employment, not gross receipts. Self-employment income counts when you receive it, not when you earn it (with an exception for income earned before you became entitled and paid later). For the first-year monthly rule, SSA generally treats more than 45 hours a month in your business as not retired, and under 15 hours as retired; 15 to 45 hours may not count as retired in a highly skilled job or when managing a sizable business.
When do wages count — when I earn them or when I'm paid?
For wages, SSA counts income when it is earned, not when it is paid. For example, a bonus or accumulated vacation pay earned in one year but paid the next shouldn't be counted as earnings for the year you receive it.
Can my work affect my spouse's or children's benefits?
Yes. If family members receive benefits on your record, SSA withholds your excess earnings from the total family benefit (a divorced spouse who meets certain conditions is an exception). If family members work, their earnings affect only their own benefits.
Does this calculator replace SSA's own estimate?
No. It's an independent estimate for information only, built from SSA's published rules. SSA makes the actual determination. You can check with SSA's official earnings test calculator, your my Social Security account, or by calling 1-800-772-1213, and you should tell SSA if your expected earnings change.
Earnings-test tracker spreadsheet
A simple month-by-month spreadsheet (and printable PDF) to tally your earnings against SSA's limit as the year goes on — so a surprise withholding letter isn't a surprise.
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Sources
- SSA — Exempt Amounts Under the Earnings Test
- SSA — Receiving Benefits While Working
- SSA — How Work Affects Your Benefits (Publication 05-10069, April 2026)
- SSA — 2026 Cost-of-Living Adjustment Fact Sheet
- SSA — Normal Retirement Age and Starting Your Retirement Benefits Early
- SSA POMS — RS 02501.025, RS 02501.030, RS 02501.080, RS 02501.095, RS 02505.065, GN 00302.400
- Check your own numbers with SSA's official Retirement Earnings Test Calculator
Last reviewed against ssa.gov: October 3, 2026. SSA publishes next year's limits each October; we'll update when it does.