You can collect Social Security and still work — but if you’re under full retirement age, earning too much means a temporary reduction in benefits. Here are the exact 2026 rules.
2026 Social Security Earnings Limits
| Age/Situation | 2026 Earnings Limit | Withholding Rate |
|---|---|---|
| Under full retirement age (entire year) | $22,320/year ($1,860/month) | $1 withheld per $2 over limit |
| Year you reach full retirement age | $59,520/year ($4,960/month) | $1 withheld per $3 over limit |
| At or past full retirement age | No limit | Nothing withheld |
Full Retirement Age by Birth Year
| Birth Year | 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 |
How the Earnings Limit Works: Examples
Example 1: Under Full Retirement Age
- Situation: You’re 64, collecting $1,500/month in Social Security, and earning $32,320/year from part-time work
- Over limit: $32,320 − $22,320 = $10,000 over the limit
- Withheld: $10,000 ÷ 2 = $5,000 withheld from benefits
- Result: SSA reduces your annual benefits by $5,000 (about $417/month less)
Example 2: Year You Reach FRA
- Situation: You turn 67 in August 2026, earning $70,000 for the year
- Months before FRA count: January through July (7 months)
- Earnings through July: Approximately $40,833 (7/12 of $70,000)
- Over limit: $40,833 − $59,520 = $0 (under the limit — no withholding)
What Counts as Earnings for the Limit
| Counts Toward Limit | Does NOT Count |
|---|---|
| W-2 wages | Investment income (dividends, interest) |
| Self-employment net income | Capital gains |
| Bonuses and commissions | Pension and annuity payments |
| Vacation pay | IRA/401(k)/403(b) distributions |
| Severance pay | Social Security itself |
| Rental income | |
| Gifts and inheritances |
How SSA Handles Withholding
The SSA does not reduce your check dollar-for-dollar month-by-month. Instead, they withhold entire monthly checks until the calculated reduction is satisfied:
- You report your expected earnings to SSA at the start of the year
- SSA withholds full monthly payments until the annual reduction amount is covered
- At year-end, if your actual earnings were lower than estimated, SSA refunds the overage
The Silver Lining: Benefit Recalculation at FRA
When you reach full retirement age, SSA recalculates your benefit to credit you for any months that were completely withheld. This permanently increases your monthly benefit going forward, making the withholding a timing adjustment rather than a permanent loss.
Earnings Limit Comparison: 2024–2026
| Year | Under-FRA Limit | Year-of-FRA Limit |
|---|---|---|
| 2024 | $22,320 | $59,520 |
| 2025 | $22,320 | $59,520 |
| 2026 | $22,320 | $59,520 |
The limits were last adjusted in 2024 and remain at those levels through 2026 pending Social Security Administration announcements.