For 2027, the Social Security retirement earnings test exempt amounts are $25,560 if you are under full retirement age for the whole year, and $67,920 in the year you reach full retirement age (for months before that month). SSA withholds $1 of benefits for every $2 above the lower limit, and $1 for every $3 above the higher limit. Source: SSA retirement earnings test tables and the 2027 COLA fact sheet.
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2027 earnings test limits
| Situation in 2027 | Annual exempt amount | Monthly | Withholding rule |
|---|---|---|---|
| Under full retirement age all year | $25,560 | $2,130 | $1 withheld per $2 over the limit |
| Year you reach full retirement age (months before FRA month) | $67,920 | $5,660 | $1 withheld per $3 over the limit |
How benefit withholding works
The retirement earnings test applies only before you reach full retirement age (also called normal retirement age). Count wages and net self-employment. Some income types do not count; SSA publications list exclusions. Withheld benefits are not a permanent tax: SSA recalculates at full retirement age to credit months that were withheld.
2026 versus 2027
| Limit | 2026 | 2027 |
|---|---|---|
| Under FRA (annual) | $24,480 | $25,560 |
| Year of FRA (annual, pre-FRA months) | $65,160 | $67,920 |
After full retirement age
Beginning with the month you attain full retirement age, the earnings test no longer applies. You can earn any amount without Social Security retirement benefit withholding under this test.
Worked example
Suppose you are under FRA for all of 2027, receive benefits, and earn $31,560. Excess = $31,560 − $25,560 = $6,000. Withholding ≈ $6,000 ÷ 2 = $3,000 of benefits for the year under the $1-for-$2 rule. Exact monthly timing depends on SSA payment cycles.
Second example for the year you reach FRA: if the higher exempt amount is $67,920 and countable earnings before the FRA month are $73,920, excess = $6,000 and withholding ≈ $6,000 ÷ 3 = $2,000 under the $1-for-$3 rule. Earnings in and after the FRA month do not count toward that test.
Planning notes
Full retirement age depends on your year of birth. Confirm your FRA on SSA.gov before using either exempt amount. Spousal and survivor benefits can also be affected by the earnings test when you are under FRA. Report expected earnings to SSA so withholding can be adjusted during the year instead of creating a large overpayment later.
Official sources
- SSA Exempt Amounts Under the Earnings Test (2027 lower $25,560; higher $67,920).
- SSA 2027 COLA Fact Sheet retirement earnings test table.
- Federal Register: Cost-of-Living Increase and Other Determinations for 2027.
Educational summary only. Confirm your FRA year and countable earnings with SSA.
Social Security earnings limit 2027 planning notes
People searching social security earnings limit 2027 usually mean the retirement earnings test exempt amounts: $25,560 if under full retirement age all year, and $67,920 in the year full retirement age is reached for months before that month.
The social security earnings limit 2027 is not a tax bracket. It is a withholding rule for retirement benefits paid before full retirement age. Earn above the lower limit and SSA withholds $1 for every $2 of excess. In the FRA year, the higher limit uses $1 for every $3 of excess on pre-FRA months.
Countable earnings generally include wages and net self-employment. Pensions, investment income, and some other items do not count. Confirm edge cases in SSA publications before relying on a spreadsheet.
If you expect to exceed the social security earnings limit 2027, report estimated earnings to SSA so monthly benefits can be adjusted during the year. That reduces large overpayments and sudden stoppages. Benefits withheld under the earnings test are not permanently lost; SSA recalculates at full retirement age.
Pair this page with your FRA year from SSA.gov. Using the wrong row of the social security earnings limit 2027 table is a common planning error when someone turns FRA mid-year.
Reporting tips for the social security earnings limit 2027
Update estimates when hours, bonuses, or self-employment net profit change. Keep pay stubs and Schedule C drafts so you can explain countable earnings if SSA asks. Spousal or survivor benefits can also interact with the social security earnings limit 2027 when the beneficiary is under FRA, so household benefit planning should not ignore a working spouse under FRA.
How benefit withholding interacts with earnings
The retirement earnings test can withhold benefits when you work and claim before full retirement age. Withheld benefits are not a permanent tax in the usual sense: Social Security recalculates your benefit at full retirement age to credit months that were withheld. Still, cash-flow planning matters if you rely on monthly checks while you keep working.
Track wages carefully in the calendar year you reach full retirement age, because a higher limit applies for months before your birthday month. After you reach full retirement age, the earnings test no longer reduces benefits based on work.
Frequently asked questions
What is the 2027 Social Security earnings limit under FRA?
$25,560 per year ($2,130 per month), with $1 withheld for every $2 above that amount.
What is the higher limit in the year I reach FRA?
$67,920 for 2027 ($5,660 monthly), applying only to earnings in months before you reach FRA, with $1 withheld per $3 over the limit.
Does the earnings test continue after full retirement age?
No. It ends beginning with the month you attain full retirement age.