Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors
Reading Time: 1 MinuteLast Updated: July 7, 2025
The Social Security Administration (SSA) is celebrating the passage of the One Big, Beautiful Bill, a landmark piece of legislation that delivers long-awaited tax relief to millions of older Americans.
The bill ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits, providing meaningful and immediate relief to seniors who have spent a lifetime contributing to our nation’s economy.
“This is a historic step forward for America’s seniors,” said Social Security Commissioner Frank Bisignano. “For nearly 90 years, Social Security has been a cornerstone of economic security for older Americans. By significantly reducing the tax burden on benefits, this legislation reaffirms President Trump’s promise to protect Social Security and helps ensure that seniors can better enjoy the retirement they’ve earned.”
The new law includes a provision that eliminates federal income taxes on Social Security benefits for most beneficiaries, providing relief to individuals and couples. It does so by providing an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they earned.
Social Security remains committed to providing timely, accurate information to the public and will continue working closely with federal partners to ensure beneficiaries understand how this legislation may affect them.
For more information about Social Security programs and benefits, visit www.ssa.gov.
Correction Notice: This blog was updated on July 7, 2025. The second sentence of the fourth paragraph originally read, “Additionally, it provides an enhanced deduction for taxpayers aged 65 and older, ensuring that retirees can keep more of what they have earned.”
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Daniel B.
Hmmm.
JT
Can we now recalculate 2025 quarterly estimated tax payments?
Conserned S.
Be careful.
This is a “Deduction” and not a “credit” nor a “cancellation” of the tax.
Be very careful. If you Itemize Deductions it will help.
BUT! if you use the “Standard Deduction” as very many seniors like I do, it may not increase your deduction at all.
AND it expires in 2028; just 3 1/2 years from now.
Robbie K.
How about SSDI people?
Still have to pay tax?
Thank you
Lolita S.
Said is paid through your state you live in. I would contact your Department if Revenue for your state for an answer to this question
Liz M.
At present, SSDI recipients do not pay taxes in IL on their benefit.
PRIMBONTOTO
Terima kasih atas informasi yang disampaikan, sangat membantu. Sebagai referensi tambahan, saya juga menemukan insight menarik di PRIMBONTOTO.
Barbara W.
You do not tell us anything about how to calculate if this applies to us.
Basil H.
It’s all bogus. There is no reduction of taxes on SS benefits. There is only an extra tax deduction for people 65+ (if you qualify).
Don’t believe what was written here. Not true.
Tim N.
Exactly! Don’t believe anything coming out of DC and this administration these days.
Mel
https://www.axios.com/2025/07/03/big-beautiful-bill-social-security
Mel
https://www.axios.com/2025/07/03/big-beautiful-bill-social-security
x
@Mel – thanks for the link. For those too lazy to click the pertinent parts are:
The deduction starts phasing out for those who earn over $75,000 ($150,000 for couples), and phases out completely at $175,000 for individuals and $250,000 for couples, in the Senate version.
The break expires in 2028 when (the traitor) Donald Trump leaves office, as do a few other White House priorities in the bills, including no tax on tips, no tax on overtime, and no tax on auto loan interest.
Most seniors — 64% of them — don’t pay taxes on Social Security, according to the White House’s own analysis.
J D.
Axios a libby site
Joyce B.
100%
Frank E.
And the extra tax deduction is only good through tax year 2028. This is so if a Democrat gets elected President in 2028 the R’s can blame him or her for raising taxes on seniors. It’s disgusting. Couple this with the cuts to SNAP and Medicaid not starting until 2027, again after the 2026 election, you can figure out what’s going on here.
Mel
https://www.axios.com/2025/07/03/big-beautiful-bill-social-security
Joseph
This doesn’t help lower income retirees who don’t have taxable income currently.
Roxann S.
The best thing and most helpful would be if after 80, no one has to pay taxes and especially no school tax when you have no kids in school,
Lolita S.
This depends on the state you live in. This has nothing to do with federal taxes
misa
agreed
x
The best and most helpful thing for senior is to never vote republican, ever.
grin n.
were have you been the last few years???
GWSheffield
Democrats are the ones started the Tax on SS. Joe Biden increased the tax as a senator. Check your facts.
Gene
If you ever need brain surgery (if you have one) you’ll be glad you helped public schools out as your surgeon probably went thru them.
JTorsrud
The only problem with this deduction is that it ends in 2028!
They should have made it permanent!
TomM
Vote Republican in 28 and it won’t be a problem.
C P.
What, so we can get more gaslighting, such as the lie about federal tax exemption for SS? A deduction is NOT an exemption, but it seems that even the SSA has no compunction about simply parroting GOP lies rather than giving us actual facts. Never mind 2028, GOP will be kicked out in 2026. The catastrophic effects of the insane tariffs and Big Bonehead Bill will guarantee that.
misa
People of both parties put this tax on Soc Sec beneficiaries a while back. President Reagan and then Senator Joe Biden. If it is to be removed, from what I understand, they need an amendment to the SSA law. That would require 60 votes I believe. I wish the Dems had done that when they had all the power. But, Biden was president at the time and he was, after all, the one who put that tax on there in the first place while he was senator.
Vickie T.
Excellent point!
Honorably D.
Voting Republican is what caused all of the problems in the first place, TomM. You voted for an untrustworthy guy who hid TOP SECRET CRYPTO documents from the FBI using his Coke boy.
Vickie T.
I agree,
Had the Democrates provided better candidates, and not a demented old man or a power crazed women, you might have had a chance.
We got what we deserved!
Nancy V.
More lies! You must be in the top tier that the Orange Dumpster gave the most tax relief to!
Nancy V.
Vote Democrat in 26 and get rid of all those bowing to the Dictator!
Nancy V.
Not a chance!
Danielle G.
If you vote Republican in 2028 you’re not paying attention to the dictator in charge snd the wimpy Congress that runner stamp his draconian policies. We are a weaker country on defense, health, economy, and foreign relations to name just a few. The cabinet members are completely unqualified and will further put our country at risk.This Republican administration has been a disaster for everyone but the very very rich!
Geoff
The last president was braindead and his cabinet was full of freaks. You are only talking to other libs with TDS. Most of us are very happy to have a President that actually does what he promised!
Brian
Geoff, President Biden is possibly suffering from dementia. Not cool to categorize people with dementia as “brain-dead”. Who are the “freaks” in the Biden Cabinet?
x
The current traitor president Donald Dump is braindead w/a cabinet full of freaks. You are only talking to other cons who STD (S**k Trump’s D**k). Most of us are very unhappy to have the traitor Donald Dump is the office of President and have watch him actually lie to dumb republican voters’ faces and does the opposite of what he promised!
Jerry
Agreed
xxx
oh yes it will. once they get away with it once, they will try something else worse next.
x
Vote republican and you vote against all Americans’ interests since they lick the boots of the traitor Donald Dump.
Lolita S.
Agreed. We need our representatives to make it permanent. Please contact your state representatives.
Ken S.
Even more, we need to get our Representatives and Senators to stop lying to us like the SS Administration is now doing, as has been stated accurately in so many of these posts.
Rey B.
A democratic Senator did try to make it permanently. The amendment failed. Take a guess why.
Ron
No need to guess…..the D’s in the House voted against it, as well as the no tax on tips and overtime. Funny thing, Kamala was proposing that when she ran. So now Trump tries to implement and the Dems turn it down.
Dann
What separates the 90% from the others?
Kim C.
This, of course, is lies. Shame on the SS Administration for putting this out. Totally misleading. More than 10% take SS at age 62. The $6K taxable income deduction wouldn’t even apply to those folks, nor age 63, and age 64. This is also misleading as it’s only $6K off your TAXABLE INCOME. The Trump administration hopes that his followers are stupid and won’t do the math. They’ll find out soon enough next tax year. Shameful. Vote these dopes out of office.
Camille
That’s what I was wondering about. I’m going to start collecting this year at 62 and I will still be paying taxes on my SS income. I think it’s ridiculous that combining my small teacher’s pension with SS suddenly puts my income into a bracket where I pay higher taxes. Loopholes only exist for the wealthy.
Jerry
I promise this is my last comment Camellia you say that the social security that you took early at 62 put you in a higher tax bracket but yet this deduction is only for the wealthy and you’re a school teacher hello
Jerry
Kim you say 10% goes out at 62 90% goes out past the age of retirement I retired last year and I’m still working at 67 is there something wrong with working so many people live in their parents’ basement
Jane D.
Really?!!?? If this is factually true, why didn’t you write the specifics in your article about both your alleged tax benefits of this bill you purport are in this horrific bill. Lies!!!!
Frank
Thank you President Trump!
Honorably D.
People like you are what’s wrong with America, Frank.
Kimberly B.
Lol, Honorably D., no, Frank is right on the mark. Every single change that has happened this year has been a help to me, an honest American.
Forest G.
Frank, apparently you didn’t do the math. Stupid is as stupid does.
Warren
Yes Mr. President thank you for lying to us. We are stupid and greatful you gave us this BS bill to appease us. Your the best
Will W.
The statutory role for the SSA is to correctly and accurately administer the policies enacted by congress, not to render public opinions in favor of or in opposition to statutory policy.
Riley P.
Thank you. This article and email sent to us were incredibly inappropriate.
Marla
I agree with you wholeheartedly.
Mel
Exactly.
Bill
Lies and propaganda
Sam
Exactly! I didn’t realize that the SSA was goose stepping to this administration too. This money should never have been taxed in the first place. Thanks to the popular but clueless Reagan. We contributed this money and then they tax it when they give it back. Like a bank account, only the interest should be taxable, NOT the principle. There has always been government corruption but it’s worse now that we live in the United SNAKES of America. 🙁
Thomas P.
I think you are not being completely honest.
Pat
Amen. This information is not totally correct and will mislead people. Shame on the Social Security Admin.
Nancy V.
Spinning the Republican lies, only giving their one sided view instead of the entire truth.
Lisa
How will this affect younger seniors on SSD?
Heather S.
When will this go into effect? 2025 or 2026 tax returns?
Jeremy
it wont, if you are under 65 you get nothing.
Miranda
THIS! I was under the impression it would affect us too. I worked 30 years at the same place and have a pension but with my SSD and pension, I’m taxed out the *ss every year is BS. I’m being punished for having a pension along with my SSD
Vickie T.
Sorry to hear this, but clearly you have a good pension. Would you have been happer about this if you were just living on your SSI?
Chad B.
No, you make more so you pay more tax. Thats how it works.
Gail
I am
Wondering as well ?
Tim S.
This has nothing to do w/SSD. It’s for SSA. Do SSD recipients have to pay federal income tax on SSD benefits? I don’t know for sure but would be very surprised.