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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Steve
I appreciate any effort to reduce the tax burden on seniors, but it’s misleading to claim that this proposal “eliminates Social Security tax liability” for individuals earning under $75,000.
The bill does not repeal the taxation of Social Security benefits. It adds a deduction that may lower overall tax owed, but many seniors—especially those with modest IRA or pension income—will still have a significant portion of their Social Security taxed due to the unchanged provisional income formula.
For example, a single retiree receiving $20,000 from an IRA and $30,000 in Social Security would still be taxed on 85% of their Social Security benefits, even though their total income is only $50,000.
Please be more accurate and transparent in how this bill is described. “Lowering tax liability for many seniors under $75,000” is honest. Saying it “eliminates Social Security tax liability” is not.
Linda W.
This is interesting but so vague that you can’t figure out whether or not these changes apply to you and if so what they might mean. Maybe because things are still being worked out (i.e. tables, etc.)? Thank you for the information.
Mateo
What are the income thresholds? Poor information.
George J.
What are the details that determines the eligibility for exemption? The article says 90% of the people MAY be eligible. Where can I get the details?
Arthur
I am upset how the “information” provided about legislation affecting Social Security is now partisan biased. It should not support one political party’s view over another.
Also, this bill will only benefit those beneficiaries in the upper middle class & wealthy who had the highest benefits being taxed. For those who weren’t having benefits taxed will receive nothing from this “big beautiful bill.”
Patricia
Who are the 10% who still need to pay taxes on social security?
Orrin
Details are too vague. We need details on exactly how the new bill will reduce our tax on social security so we can calculate the amount. Grateful for any reduced taxes.
Ellen T.
Who are these remaining 10% for whom the federal tax break don’t apply?
Michael D.
How do I find out if I qualify and don’t have to pay taxes on my social security?
Pat
This information is incorrect…Social Security will still be taxed however for SOME they may get a monetary deduction that phases out at higher rates but makes little help for those with low rates. In total this is NOT a big beautiful bill as things are taken away such as some Medicaid, etc. It is a shameful bill that even alters the Affordable Care Act among other things. It will also put the US 3.3 trillion more in debt so the president (not my president) can build a border wall, round up more legal workers who contribute to America’s success and deport them not even to their own countries. Republicans are to blame for kowtowing to Trump not governing for their citizens.