Social Security’s retirement earnings test still applies in 2026: if you are below full retirement age all year, the agency withholds $1 in benefits for every $2 you earn above $24,480. In the year you reach full retirement age, a higher limit and a $1-for-$3 rate apply to earnings before your birthday month. Bills to repeal the test have been introduced in both chambers of Congress, but the official records cited here show committee referrals—not enactment.
How much can you earn while collecting Social Security in 2026?
The retirement earnings test can reduce or withhold retirement benefits when your work earnings exceed an annual exempt amount before you reach full retirement age. The Social Security Administration says you can receive retirement benefits and work at the same time; the test determines how much may be withheld while you are below full retirement age. The thresholds below are SSA’s amounts for 2026. SSA’s 2026 FAQ and its earnings-test exempt-amount table provide the current figures.
| Situation in 2026 | Exempt amount | Withholding rate above the amount | Which earnings count? |
|---|---|---|---|
| Below full retirement age throughout the year | $24,480 for the year | $1 in benefits for every $2 of excess earnings | Earnings during the year |
| Reach full retirement age during the year | $65,160 for the year | $1 in benefits for every $3 of excess earnings | Only earnings before the month you reach full retirement age |
Beginning with the month you reach full retirement age, earnings no longer count under this test. The special higher limit applies only in that calendar year; the lower limit applies when you are below full retirement age for the entire year.
What counts as earnings?
SSA’s planner says the test counts wages from work and net profit from self-employment. Wages can include bonuses, commissions and vacation pay. Pensions, annuities, investment income, interest, veterans benefits, and other government or military retirement benefits do not count as earnings for this test. SSA notes that different rules apply to work outside the United States; consult its Receiving Benefits While Working planner for details relevant to your circumstances.
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How the withholding works
The test is calculated against earnings above the applicable exempt amount, not against all earnings. For example, SSA illustrates the under-full-retirement-age rule with someone receiving $800 a month in 2026 benefits and earning $33,400 that year. The earnings exceed the $24,480 limit by $8,920; at $1 withheld per $2 of excess earnings, the reduction for that example year is $4,460. This is an SSA example, not a prediction of any individual’s payment schedule.
For someone who reaches full retirement age in August, only earnings from January through July are compared with the $65,160 limit. The test stops applying starting in August. The month-based cutoff matters: it is not a threshold that continues to apply through the end of the year just because the person worked earlier in the year.
Are benefits withheld under the test lost permanently?
Not necessarily. SSA says it recalculates a person’s benefit at full retirement age to leave out months in which benefits were reduced or withheld because of excess earnings. That is a benefit adjustment based on the affected months; it should not be confused with an automatic cash refund of every dollar withheld. SSA’s planner also describes a special monthly rule that may apply in a person’s first year of retirement, so people with changing work or retirement dates should check the agency’s guidance rather than rely only on the annual limit.
What would the repeal bills change—and have they passed?
Two bills introduced in 2026 propose repealing the retirement earnings test. Their official records show introduction and referral to the relevant committees, not passage or enactment.
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| Bill | Chamber and sponsor | Introduced | Official action shown |
|---|---|---|---|
| H.R. 8344, Senior Citizens’ Freedom to Work Act of 2026 | House; Representative Gregory F. Murphy | April 16, 2026 | Referred to the House Committee on Ways and Means |
| S. 4184, Senior Citizens’ Freedom to Work Act of 2026 | Senate; Senator Rick Scott, with Senator Tommy Tuberville as cosponsor | March 24, 2026 | Referred to the Senate Committee on Finance |
Both measures state a purpose of amending the Social Security Act to repeal the test. A referral means the bill was sent to a committee for consideration; it does not itself change the rules. The cited official records establish neither passage nor a later advance beyond referral. Check the current House bill record and Senate bill record for subsequent actions before treating the proposals as current law.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is known about the policy effects of repeal?
SSA has published a policy-option analysis titled “Projected Effects of PROPOSAL: Eliminate the Retirement Earnings Test.” The agency cautions that providing estimates does not imply its support for the proposal. The available information does not establish a specific fiscal or distributional estimate that can responsibly be summarized here. The analysis is available from SSA’s policy-options page.
The 2026 exempt amounts are set under formulas in the Social Security Act; the Federal Register’s 2025 notice of 2026 Social Security amounts explains the calculation. For someone deciding whether to work while receiving benefits, however, the practical figures are the thresholds and rates in SSA’s current table, together with the timing and month-specific rules above.
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