Javascript is not enabled.

Javascript must be enabled to use this site. Please enable Javascript in your browser and try again.

Skip to content
Content starts here


Leaving Website

You are now leaving and going to a website that is not operated by AARP. A different privacy policy and terms of service will apply.

Can rental income reduce Social Security benefits?

No. Social Security only counts income from employment towards the retirement earnings test. Other kinds of income — including income from rental properties, lawsuit payments, inheritances, pensions, investment dividends, IRA distributions and interest — will not cause benefits to be reduced.

In 2023, Social Security withholds $1 in benefits for every $2 earned above the annual limit of $21,240 for people who claimed benefits before reaching full retirement age, which is 66 and 4 months for people born in 1956 or 66 and 6 months for those born in 1957 and is gradually rising to 67. Earnings made as an employee, net earnings from self-employment, and work-related bonuses and awards count toward the limit. 

spinner image Image Alt Attribute

AARP Membership


Flash Sale! Join AARP for just $9 per year with a 5-year membership. Join now and get a FREE GIFT

Join Now

Keep in mind

  • different formula applies for the year in which a beneficiary will reach full retirement age — the earnings limit is $56,520, and $1 in benefits is withheld for every $3 in income exceeding the cap. 
  • The earnings test goes away once a beneficiary reaches full retirement age. From then on, income level has no effect on Social Security benefits.

Discover AARP Members Only Access

Join AARP to Continue

Already a Member?