If you claim Social Security before your full retirement age and keep working, the Social Security Administration withholds some benefits once your earnings pass a yearly limit. For 2027 those limits are $25,560, or $67,920 in the year you reach full retirement age.
This guide gives both limits, the withholding rules, the age definition and worked examples, all taken from the SSA notice published in the Federal Register on 26 October 2026.
| Who | Monthly exempt amount | Annual exempt amount | 2026 monthly amount |
|---|---|---|---|
| Under Normal Retirement Age (NRA) for all of 2027 | $2,130 | $25,560 | $2,040 |
| Reaching NRA during 2027 (months before NRA only) | $5,660 | $67,920 | $5,430 |
The Social Security Administration (SSA) set these amounts in its notice published in the Federal Register on 26 October 2026. It says the annual exempt amounts are exactly 12 times the monthly amounts, and that Social Security benefits are withheld when a beneficiary under NRA has earnings more than the applicable exempt amount.
SSA's notice states the rule in two lines. For beneficiaries who attain NRA in the year, it withholds $1 in benefits for every $3 of earnings over the annual exempt amount for months before NRA. For all other beneficiaries under NRA, it withholds $1 in benefits for every $2 of earnings over the annual exempt amount.
The higher exempt amount applies only in the year a person reaches NRA, and only to earnings in months before that point. The lower amount applies at every other age below NRA.
| Situation in 2027 | Earnings | Over the limit | Benefits withheld |
|---|---|---|---|
| Under NRA all year | $25,000 | $0 | $0.00 |
| Under NRA all year | $25,560 | $0 | $0.00 |
| Under NRA all year | $30,000 | $4,440 | $2,220.00 |
| Under NRA all year | $40,000 | $14,440 | $7,220.00 |
| Under NRA all year | $60,000 | $34,440 | $17,220.00 |
| Reaching NRA in 2027 (earnings before that month) | $60,000 | $0 | $0.00 |
| Reaching NRA in 2027 (earnings before that month) | $67,920 | $0 | $0.00 |
| Reaching NRA in 2027 (earnings before that month) | $80,000 | $12,080 | $4,026.67 |
| Reaching NRA in 2027 (earnings before that month) | $100,000 | $32,080 | $10,693.33 |
These are our own calculations from SSA's published limits and ratios, not SSA examples. The notice does not say how withheld amounts are later credited, and your actual withholding also depends on how SSA counts your earnings month by month, so use SSA's own tools or a call to SSA for your case.
SSA defines NRA as the age when retirement benefits (before rounding) equal the primary insurance amount. NRA is age 66 for people born in 1943 to 1954, and it rises gradually to age 67 for people born in 1960 or later.
Both limits rose. The lower monthly amount went from $2,040 to $2,130 and the higher from $5,430 to $5,660, which is $24,480 to $25,560 and $65,160 to $67,920 a year. The notice also confirms a 3.6% cost-of-living increase in benefits from December 2026; see our 2027 cost-of-living adjustment guide. The earnings test is separate from the tax on benefits, which depends on your total income; our Social Security tax by state guide covers state treatment.
Social Security Administration: Cost-of-Living Increase and Other Determinations for 2027 (Federal Register, 26 October 2026), Federal Register official PDF (govinfo.gov), 91 FR 67380.