How much can you earn while on Social Security in 2026? The answer depends on your age, your benefit type, and whether you have reached full retirement age, with updated federal earnings limits now in effect for this year.
For millions of Americans who collect Social Security retirement benefits but continue working, understanding the annual earnings limits is essential. The Social Security Administration (SSA) adjusts these thresholds each year. If you earn more than the allowed amount before reaching full retirement age, part of your benefit may be temporarily withheld.
Here is a complete, up-to-date breakdown of the current rules as of February 13, 2026.
Table of Contents
2026 Social Security Earnings Limits
The Social Security earnings test applies only to people who:
- Are receiving retirement benefits
- Have not yet reached full retirement age (FRA)
- Continue to work and earn wages or self-employment income
For 2026, the SSA has set the following annual limits:
If You Are Under Full Retirement Age for All of 2026
- Annual earnings limit: $23,400
- Benefit reduction: $1 withheld for every $2 earned above the limit
If You Reach Full Retirement Age in 2026
- Earnings limit before FRA month: $62,160
- Benefit reduction: $1 withheld for every $3 earned above the limit
- Only earnings before the month you reach FRA count.
If You Are at or Above Full Retirement Age
- No earnings limit applies.
- You can earn any amount without benefit reduction.
These numbers reflect the latest official adjustments for 2026.
What Counts as Earnings?
When calculating how much you can earn while on Social Security, the SSA only counts certain types of income.
Included:
- Wages from employment
- Net earnings from self-employment
- Bonuses and commissions
Not Included:
- Pension payments
- Social Security benefits
- Investment income (stocks, bonds, interest, dividends)
- Rental income (unless you are actively operating a business)
Only earned income affects your benefit under the earnings test.
Understanding Full Retirement Age (FRA)
Full retirement age depends on your birth year.
For individuals born in 1960 or later, full retirement age is 67. Most Americans retiring now fall into this category.
Here is a quick reference:
| Birth Year | Full Retirement Age |
|---|---|
| 1959 | 66 and 10 months |
| 1960 or later | 67 |
Once you reach FRA, the earnings test disappears permanently.
Example Scenarios for 2026
Let’s look at real-world examples to clarify how the limits work.
Example 1: Age 63, Working Part-Time
- Annual earnings: $30,000
- Earnings limit: $23,400
- Excess earnings: $6,600
- Reduction: $3,300 withheld
In this case, $3,300 of benefits would be withheld during the year.
Example 2: Reaching FRA in September 2026
- Earnings from January to August: $70,000
- Earnings limit before FRA month: $62,160
- Excess earnings: $7,840
- Reduction: About $2,613 withheld
After September, no limit applies.
Important: Benefits Are Not Lost Forever
Many retirees worry that withheld benefits are permanently gone. That is not accurate.
When you reach full retirement age, the SSA recalculates your benefit. The agency credits back the months where payments were withheld due to excess earnings.
This adjustment can increase your monthly benefit going forward.
Social Security and the 2026 Cost-of-Living Adjustment (COLA)
In addition to earnings limits, Social Security beneficiaries received a cost-of-living adjustment for 2026.
The 2026 COLA is 2.5%, reflecting inflation trends measured during the previous year.
This increase affects:
- Retirement benefits
- Social Security Disability Insurance (SSDI)
- Supplemental Security Income (SSI)
The average monthly retirement benefit rose accordingly at the start of January 2026.
Working After Claiming Early Benefits
You can begin collecting Social Security retirement benefits as early as age 62. However, claiming before full retirement age permanently reduces your monthly benefit.
If you claim early and continue working:
- You face the earnings test limits.
- Your base monthly benefit is already reduced.
This combination can temporarily reduce your overall income more than expected.
For many Americans, waiting until full retirement age removes the earnings cap and preserves a higher monthly benefit.
Special Rule for the First Year of Retirement
The SSA applies a special monthly rule in your first year of retirement.
If you retire midyear, the agency may apply a monthly earnings test instead of the annual limit.
Under this rule:
- You can receive full benefits for any month you are considered retired.
- A month counts if you earn below a specific monthly threshold.
This rule helps individuals who stop working partway through the year.
Self-Employed Workers
If you are self-employed, the SSA examines:
- Net earnings
- Hours worked
- Whether you are performing substantial services
Simply reducing income on paper does not necessarily qualify as retirement. The SSA reviews the nature of your business involvement.
Self-employed individuals should carefully track earnings to avoid unexpected benefit withholding.
Impact on Spousal Benefits
The earnings test also applies to individuals receiving spousal benefits before reaching full retirement age.
If the spouse earning wages exceeds the annual limit, their own benefits may be reduced. However, one spouse’s earnings do not reduce the other spouse’s retirement benefit.
Each person’s earnings test applies individually.
Disability Benefits and Earnings
Social Security Disability Insurance (SSDI) follows different rules.
For 2026:
- Substantial Gainful Activity (SGA) limit for non-blind individuals: $1,620 per month
- For blind individuals: $2,700 per month
If earnings exceed the SGA threshold after the trial work period, disability benefits may stop.
Retirement earnings limits and disability work limits operate under separate guidelines.
Taxes vs. Earnings Limits
It is important to distinguish between:
- Earnings limits (which affect benefit withholding before FRA)
- Federal income taxes on Social Security benefits
Even after reaching full retirement age, your benefits may be subject to federal income tax if your combined income exceeds certain thresholds.
However, those tax rules are separate from the earnings cap.
Why Earnings Limits Increase Each Year
The SSA adjusts annual earnings limits based on national wage growth.
When average wages rise, the income thresholds typically increase.
This adjustment reflects overall labor market conditions rather than inflation alone.
The 2026 limits are higher than those in 2025, continuing that trend.
Quick Reference Table for 2026
| Situation | 2026 Earnings Limit | Reduction Rate |
|---|---|---|
| Under FRA all year | $23,400 | $1 for every $2 over |
| Reach FRA in 2026 | $62,160 (before FRA month) | $1 for every $3 over |
| At or above FRA | No limit | No reduction |
This table summarizes how much you can earn while on Social Security under current rules.
Key Takeaways for 2026
- The earnings test applies only before full retirement age.
- Limits are higher in the year you reach FRA.
- Once you reach FRA, you can earn unlimited income.
- Withheld benefits are recalculated later.
- Investment income does not count toward the limit.
Understanding these distinctions can help retirees make informed work decisions.
Working during retirement has become more common across the United States. Many Americans choose part-time jobs for financial flexibility or personal fulfillment. Knowing the current rules prevents surprises when benefits are adjusted.
Have questions about your retirement strategy? Share your thoughts below and stay informed about the latest Social Security updates.
