PolicyEngine

Taxation of Social Security benefits

Budgetary impacts of reforming the taxation of Social Security benefits through 2100. Commissioned by the Committee for a Responsible Federal Budget.

This dashboard shows how proposed reforms to the federal income taxation of Social Security benefits would affect federal revenue and the Social Security (OASDI) and Medicare (HI) trust funds, year by year through 2100.

Choose a reform from the sidebar to see its revenue impact, trust-fund split, and effect across the income distribution. Every reform is scored against scheduled benefits, and the repeal, 85%, 100%, and Phased Roth options can also be scored against a Social Security solvency baseline. Start with the explainer below for how benefit taxation works today.

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Explore the reforms

Benefit tax rules

Change how much of Social Security benefits is subject to income tax — from full repeal to taxing 100% of benefits.

Structural swaps

Replace benefit taxation with a different mechanism, such as taxing contributions up front instead of benefits in retirement.

How the analysis works

Citable paperFull narrative, methodology, and sources

Analysis by PolicyEngine, commissioned by the Committee for a Responsible Federal Budget. Data: 2026 Social Security Trustees Report and populace microdata.