If you collect Social Security before your full retirement age and keep working, you can earn up to $24,480 in 2026 before your benefits shrink. Above that, the Social Security Administration withholds $1 in benefits for every $2 you earn over the limit. In the calendar year you reach full retirement age, a higher limit applies — $65,160 — with a gentler $1-for-$3 reduction.
Once you hit full retirement age, the limit disappears entirely. You can earn any amount with zero benefit reduction. And the money withheld earlier is not gone forever — more on that below.
How does the 2026 earnings test work?
The rule that applies depends on where you are relative to full retirement age (FRA), which is 67 for anyone born in 1960 or later:
| Your situation in 2026 | Annual limit | Reduction above the limit |
|---|---|---|
| Under FRA all year | $24,480 | $1 withheld per $2 over |
| Reach FRA during 2026 | $65,160 | $1 withheld per $3 over (only months before FRA count) |
| At or past FRA | No limit | No reduction |
Example: you are 63, collect benefits, and earn $30,480 in 2026. That is $6,000 over the limit, so SSA withholds $3,000 — typically by holding back full monthly checks until the amount is covered, not by trimming each check.
What income counts toward the limit?
Only money you earn from work: gross wages from a job and net earnings from self-employment. That is the complete list.
What does not count:
- Pensions and annuities
- Investment income, interest, and dividends
- Withdrawals from IRAs or 401(k)s
- Other government benefits
- A spouse’s earnings — the test applies per person
This matters if you are also drawing benefits on a spouse’s record; the earnings test can reduce those too. See how spousal benefits are calculated in 2026.
What happens in the year you reach full retirement age?
Two changes soften the rule. First, the limit nearly triples to $65,160. Second, SSA only counts earnings from the months before your FRA month. If you turn 67 in September 2026, your January-through-August earnings are measured against the limit — everything from September onward is ignored, no matter how much you make.
Do you lose the withheld money forever?
No. At full retirement age, SSA recalculates your monthly benefit and credits back the months in which benefits were withheld. Your check gets permanently larger to compensate. The earnings test is closer to a deferral than a tax — though you do need to live long enough for the higher checks to make up the difference.
Is there a special rule for your first year?
Yes. If you retire mid-year and have already earned well over the annual limit, a monthly test applies instead: in 2026, you can receive a full benefit for any month you earn $2,040 or less (one-twelfth of the annual limit), regardless of your year-to-date total. This prevents a strong first half-year of wages from wiping out benefits after you actually stop working.
For when your payments arrive, see the Social Security payment schedule for August 2026, and for what next year’s checks may look like, the 2027 COLA estimate.
FAQ
Q. Does the earnings limit apply to SSDI or SSI?
A. No — this test is for retirement, spousal, and survivor benefits. Disability benefits use different work rules (substantial gainful activity), and SSI has its own income formula.
Q. How does SSA know what I earn?
A. Through employer wage reports and your tax return. If you expect to exceed the limit, report it in advance so SSA adjusts payments — otherwise you can end up with an overpayment notice.
Q. Is the $24,480 limit gross or take-home pay?
A. Gross wages before taxes and deductions (or net profit if self-employed).
Q. Does the limit change every year?
A. Yes, it rises with national wage growth. The 2026 figures are $24,480 and $65,160; 2027 amounts will be announced in October 2026.