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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Joe R.
Yhe “Big Beautiful Bill” does not eliminate federal income taxes on Social Security benefits. Instead, it introduces a TEMPORARY “senior deduction” which reduces taxable income but doesn’t fundamentally change how Social Security benefits are taxed.
What’s Actually in the Bill?
Individuals aged 65+ can claim up to a $6,000 deduction (or $12,000 for couples) on their taxable income from 2025 through 2028. This deduction lowers your taxable income, potentially reducing or eliminating the portion of Social Security benefits subject to tax, but it doesn’t repeal taxation of Social Secirity.
High-income seniors may not qualify, and low-income seniors already pay no Social Security tax.
After 2028 this deduction expires.
Presidential messaging has emphasized “no tax on Social Security benefits,” which sounds like a repeal, but the legislation only offers a deduction, not a repeal.
Budget reconciliation rules prevent changes to Social Security’s trust funding, so lawmakers used a deduction workaround instead.
The White House and some backers highlight that 88% of seniors would effectively pay no tax on their benefits due to the total deductions exceeding their taxable Social Security income, but that’s based on the temporary deduction, not a structural tax repeal .
You won’t owe federal income tax on Social Security benefits other than what’s allowed under current tax law, plus this temporary senior deduction.
There is no permanent repeal of Social Security taxation. For many mid-income retirees, the deduction could eliminate federal tax on benefits practically while it’s in effect, but only until 2028.
Robyn L.
When does it go in to effect?
Do I have to change my tax withholding form with the IRS?
Does it apply if I am still working?
Pat K.
Commissioner
I did not subscribe to receive emails from SSA that promote your politics. Today’s “Big Beautiful Bill” email you sent to all SSA recipients was inappropriate. I do not think that bill should have ever passed and I sure as hell do not want to receive emails from SSA congratulating yourselves for affirming the largest deficit in American history.
James S.
what a useless bit of deception and misdirection this is. How about some information?
Keith F.
This will not extend the life of the “trust fund”.
Patti M.
Will we be receiving a notification from you as to the changes and the revised amount we will be receiving in the near future?
Sharon K.
Sounds like far right propaganda. No examples, no in depth explanations, just propaganda!
Carolyn B.
Up to 90% of seniors won’t have to pay federal taxes on their SS. Who are the 10% that do? What is the threshold?
Bottoming f.
fake news lol
David T.
I suppose the less intelligent will applaud this disgusting propaganda. In other words, the MAGAts.
I can’t wait until it really really hurts them, since they take such pleasure in hurting others. Schadenfreude!