The earnings test limits
| Situation | 2026 | 2027 | What SSA withholds |
|---|---|---|---|
| Under full retirement age all year | $24,480/yr ($2,040/mo) | $25,560/yr ($2,130/mo) | $1 for every $2 over the limit |
| Year you reach full retirement age (earnings before the month you reach it) | $65,160/yr ($5,430/mo) | $67,920/yr ($5,660/mo) | $1 for every $3 over the limit |
| Month you reach full retirement age and after | No limit | No limit | Nothing |
Two examples (2026)
Under full retirement age all year: You claim at 63 and earn $40,000. That is $15,520 over the $24,480 limit, so SSA withholds half of it, $7,760, from your benefits.
Reaching full retirement age this year: You earn $75,000 in the months before your FRA month. That is $9,840 over $65,160, so SSA withholds one-third, $3,280.
What counts as earnings
Only wages and net self-employment income count. Pensions, investment income, interest, annuities, and other Social Security benefits do not count toward the limit.
The first-year rule
In the first year you retire, SSA also applies a monthly test: you can receive your full benefit for any month in which you earn at or below the monthly limit, even if your total for the year is higher. This helps people who retire mid-year after earning a large salary earlier in the year.