2026 vs 2027
2027 earnings test limits
| Your situation | 2026 limit | 2027 limit | Withheld |
|---|---|---|---|
| Under full retirement age all year | $24,480 | $25,560 | $1 per $2 over |
| Year you reach full retirement age (months before it) | $65,160 | $67,920 | $1 per $3 over |
| From the month you reach full retirement age | No limit | No limit | Nothing |
The monthly versions of these limits, $2,130 and $5,660 for 2027 ($2,040 and $5,430 for 2026), matter only under the special first-year rule described below.
Full retirement age
Do you reach full retirement age in 2027?
Full retirement age is 67 for anyone born January 2, 1960 or later, so most people who reach it during 2027 were born in 1960. If you were born in 1959, your full retirement age is 66 and 10 months, which you reached in 2025 or 2026. People born on January 1 use the rule for the previous year. Earnings from the month you reach full retirement age onward do not count toward the test.
How SSA collects it
SSA holds whole checks, then pays any extra back
SSA does not trim a little from each payment. It withholds entire monthly checks from the start of the year until the reduction is covered, then pays your full benefit for the rest of the year. If the checks it held add up to more than the reduction, it pays you the difference the following year.
Example: you are under full retirement age for all of 2027, your benefit is $1,500 a month and you expect to earn $35,560. That is $10,000 over the $25,560 limit, so the reduction is $5,000. SSA would hold your January to April checks ($6,000), pay $1,500 a month from May and pay back the extra $1,000 in 2028.
What counts
Which earnings count toward the 2027 limit
SSA counts wages from a job, including bonuses, commissions and vacation pay, and your net profit if you are self-employed. It does not count pensions, annuities, investment income, interest, veterans benefits, or other government or military retirement benefits.
Special rule for your first year of retirement
If you retire partway through the year after already earning more than the annual limit, SSA can pay a full check for any whole month it considers you retired, regardless of your yearly earnings. For 2027 that is a month in which you earn $2,130 or less if you are under full retirement age all year, or $5,660 or less in the year you reach it, and in which you do not perform substantial services in self-employment. SSA treats more than 45 hours a month in your business, or 15 to 45 hours in a highly skilled occupation, as substantial services.
Related 2027 tools: 2027 COLA calculator · 2027 wage base and FICA calculator · 2027 HSA limits · claiming age break-even.
Questions
2027 earnings limit FAQ
What is the Social Security earnings limit for 2027?
It is $25,560 if you are under full retirement age for all of 2027, with $1 withheld for every $2 above it. In the year you reach full retirement age the limit is $67,920, with $1 withheld for every $3 above it, counting only earnings before that month. There is no limit from the month you reach full retirement age.
Are benefits withheld under the earnings test lost?
No. SSA says withheld benefits are not lost: at full retirement age your monthly benefit is increased permanently to account for the months benefits were withheld. Spouses and survivors who receive benefits because they care for a minor or disabled child are an exception.
Does a pension or investment income count toward the earnings limit?
No. Only wages from work and net self-employment earnings count. Pensions, annuities, investment income, interest, veterans benefits and other government or military retirement benefits are not counted.
How does SSA take the withheld amount?
It holds whole monthly checks starting in January until the reduction is covered, then resumes full payments for the rest of the year. If it holds more than needed, it pays you the difference the following year.
What is my full retirement age if I was born in 1960?
It is 67. Full retirement age is 67 for anyone born January 2, 1960 or later. Earnings from the month you reach full retirement age onward do not reduce your benefits.
Sources
- SSA: Exempt Amounts Under the Earnings Test: 2026 and 2027 limits, $1 for $2 and $1 for $3, benefits not lost
- SSA: 2027 COLA Fact Sheet: monthly limits of $2,130 and $5,660
- SSA: COLA information for 2027: no limit at or after full retirement age
- SSA: Receiving Benefits While Working: earnings that count and recalculation at full retirement age
- SSA: Special Earnings Limit Rule: first-year monthly rule and substantial services
- SSA: How Work Affects Your Benefits (publication 05-10069): whole checks withheld from January and the exception for spouses and survivors
- SSA: Normal Retirement Age: full retirement age by year of birth
- Last updated October 21, 2026
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