The Social Security “tax torpedo”, see yours in 30 seconds.
Most retirees think a $1,000 withdrawal in the 10% bracket costs $100. It can cost far more, because that dollar quietly drags your Social Security into tax right alongside it. Put in your numbers below and watch your real marginal rate light up.
Your numbers
You think you're in the 10% bracket, but your next dollar is really taxed at 19%, about 1.8× the printed rate. That gap is the Social Security tax torpedo: each dollar you pull drags more of your benefit into tax alongside it.
The torpedo, drawn
marginal rate as withdrawals riseEverything held fixed except your IRA/401(k) withdrawal. The dot is where you are now.
Educational estimate using 2025 federal figures. The four Social Security thresholds haven't moved since the 1980s/1993, that's what creates the torpedo. IRMAA normally uses income from two years prior; shown here on current income for planning. NIIT and a few edge cases aren't modeled. Not tax advice.
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The printable 2026 Torpedo Table shows every level of other income, what becomes taxable and what you pay, single and married, on two pages. The Excel workbook is the same fillable model I use with clients: every IRS worksheet, the federal tax, the Medicare IRMAA math and New York State. Both are free, from Jim Swiech, CPA.
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18+ years helping Western New York families make sense of complex tax and retirement decisions. Based in Lockport, most clients are within an hour's drive.
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Book a free 30-minute reviewQuick answers
- What is the Social Security tax torpedo?
- It is the spike in your real tax rate that happens when extra income, usually an IRA or 401(k) withdrawal, pulls more of your Social Security into taxable income at the same time. Up to 85 cents of every benefit dollar can become taxable. So one extra dollar of withdrawal can add up to $1.85 of taxable income, and a retiree in the 12% bracket can pay about 22% on that dollar, while someone in the 22% bracket can pay about 40%.
- Who gets hit by the tax torpedo?
- Retirees who collect Social Security and also draw from pre-tax accounts or a pension. The trigger is combined income: your adjusted gross income, plus tax-exempt interest, plus half your Social Security. Benefits start becoming taxable above $25,000 for a single filer and $32,000 for a married couple, and up to 85% is taxable above $34,000 and $44,000. Those thresholds have never been indexed for inflation, so more retirees cross them every year.
- How do you get out of the torpedo zone?
- You cannot change the formula, but you can change which dollars flow through it and when. Roth conversions in the years before Social Security starts, choosing which account to draw from first, and the age you claim benefits all move the result. The calculator on this page shows your own marginal rate at each withdrawal level so you can see where the spike starts for you.
Updated . Reviewed by Jim Swiech, CPA.