How to Calculate Provisional Income

By Motley Fool Staff – Updated Apr 29, 2025 at 11:22 PM

Key Points

Social Security income is taxed based on provisional income calculations.
To find provisional income, add gross income, tax-free interest, and half your Social Security.
Tax rates for Social Security range from 0% to 85% depending on filing status and income level.

Social Security benefits were initially exempt from federal income tax, but in 1983, they became partially taxable. In 1993, a second income threshold was added that increased the share of benefits subject to taxation. Today, some recipients of Social Security can collect all of their benefits tax-free. Others, however, are required to pay taxes on their Social Security benefits, and this is where provisional income comes into play.

Loading paragraph...

An older couple looking at documents at their kitchen table — Image source: Getty Images.

Loading image...

Provisional income is a measure used by the IRS to determine whether or not recipients of Social Security are required to pay taxes on their benefits. Provisional income is calculated by adding up a recipient's gross income, tax-free interest, and 50% of Social Security benefits.

Loading paragraph...

Loading table...

One more way to add to your income in retirement, of course, is to own stocks. For that, you'll need a brokerage account, if you don't already have one. We encourage you to check out our brokerage section, where you can learn about various choices and figure out which one is the best for your investing needs.