How Does Social Security Affect Taxes in Retirement?

Learn how Social Security benefits are taxed federally and in Oklahoma, and how to reduce your tax burden.

Social Security provides critical retirement income, but many Oklahomans are surprised to learn their benefits may be taxed. Up to 85% of Social Security can be taxable depending on income. The good news? With smart planning, you can reduce or avoid these taxes.

How Federal Taxes Work

The IRS uses “provisional income” to determine taxation. This includes adjusted gross income, non-taxable interest, and half of your Social Security benefits.

• Single filers: Taxation begins at $25,000 provisional income
• Married couples: Taxation begins at $32,000 provisional income

Oklahoma State Taxes

Good news: Oklahoma does not tax Social Security benefits. However, federal taxes still apply for many retirees.

Strategies to Reduce Taxes

• Delay Social Security until age 67–70
• Use Roth conversions to lower taxable income
• Sequence withdrawals from taxable accounts
• Use Qualified Charitable Distributions

Anchor’s Role

Anchor Financial Group models retirement income strategies to minimize taxable Social Security benefits and maximize lifetime cash flow.

Social Security taxes don’t have to drain your retirement. Anchor shows Oklahomans smarter strategies.

Request a retirement tax review