What It Takes for a Married Couple To Reach the 22% Retirement Tax Bracket, According to Erin Moriarity
Retirement income can look very different once taxes enter the picture.
But financial pro Erin Moriarity said many retirees may have more money left to spend than they expect because deductions, Social Security and the types of accounts they draw from can all reduce how much of their income is actually taxable.
See for Yourself: Experts Predict the 2026 Tax Brackets — Who Will Pay More?
Consider This: How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
In a recent video, the host of the Erin Talks Money YouTube channel showed how a married couple could have nearly $150,000 in retirement income before their next dollar is taxed at 22%.
More Income, Lower Bracket
For 2026, the 22% federal tax bracket for married couples filing jointly begins at about $100,000 in taxable income, Moriarity explained.
The 22% and 24% brackets are simply higher tax-rate ranges that apply as taxable income rises. But retirees may qualify for deductions that reduce how much of their income is taxed.
In Moriarity’s example, a married couple who are both 65 or older can shelter about $47,500 through the standard deduction, age-based deductions and the newer senior deduction.
“That is nearly $150,000 of income for the household, and their highest marginal rate is still 12%,” Moriarity said.
How Social Security Helps
The couple can stretch that number even further with Social Security because the IRS doesn’t necessarily count the entire benefit as taxable income.
The IRS uses a calculation called provisional income to determine how much of a household’s Social Security benefits are taxable, Moriarity explained. The financial expert said that anywhere from 0% to a maximum of 85% of Social Security benefits may be included as taxable income.
“But it’s never 100%,” she said. In her example, the couple receives $50,000 in Social Security and she assumes the maximum 85% is taxable. That means $42,500 counts toward taxable income, while the remaining $7,500 does not.
“The total household income comes out to roughly $156,000, still just reaching the edge of the 22% bracket,” Moriarity noted.
The 24% Bracket
The same pattern holds as income climbs, Moriarity explained.
For her married couple, total household income could reach about $253,000 before their next dollar is taxed at 24%. If $50,000 of that income comes from Social Security, the total rises to about $260,000.
“A married couple can bring in nearly a quarter of a million and still stay just under the 24% bracket,” Moriarity said.
The 'Capital Gains Wildcard'
Moriarity next turns to taxable brokerage accounts, where long-term capital gains are taxed differently from ordinary income.
In her example, a couple withdraws $50,000 from a taxable brokerage account. If $30,000 of that amount represents what they originally invested, only the remaining $20,000 is a taxable gain.
“You aren’t taxed on the full amount,” Moriarity said. “You’re only taxed on the gains.”
The Roth Advantage
Moriarity also points to Roth accounts, where qualified withdrawals generally are not included in taxable income.
“A qualified distribution from your Roth 401(k) or Roth IRA doesn’t affect your gross income at all,” Moriarity said.
Those withdrawals also don’t affect ordinary income brackets or the provisional income used to determine how much Social Security is taxable, she explained. That makes Roth accounts “one of the most flexible tools” for retirees who want more available money without increasing taxable income.
Your Tax Bracket May Be Further Away
During their working years, most people earn income through a W-2 job or self-employment, which Moriarity said can move them through the tax brackets more quickly.
Retirement changes the picture. Income may instead come from a combination of Social Security, retirement accounts and investments, all of which can be treated differently for tax purposes.
That’s why Moriarity said the higher tax bracket many retirees worry about may be further away than they think.
“How far away depends on more than just your income,” she said. “It depends on your age, your filing status, how much of your income comes from Social Security, and whether you’re pulling from ordinary accounts, a taxable brokerage account, or a Roth account.”
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion: