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Social Security Applauds Passage of Legislation Providing Historic Tax Relief for Seniors

July 3, 2025 • By

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Last Updated: July 7, 2025

Two people walking up the stairs in a school settingThe 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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  1. Cathy L.

    How do I find out whether or not I will continue to pay federal taxes?

    Reply
  2. David K.

    This is what I’ve been waiting for all my life.
    I just turned 65 this year and I’m still in the workforce, however, considering that social security benefits will be tax exempt soon, I may consider taking my benefits at my FRA of 67 years old rather than continuing to work until I’m 70 in order to get the 24% bump.
    Additionally, the $6,000 yearly tax deduction for those of us over 65 is just an added bonus.

    Reply
  3. Jeffrey S.

    The Big Bad Bill is not a benefit to those of us who are middle-class seniors. It is simply the largest transfer of wealth from working families to the wealthiest — it is the greatest wealth transfer in American history!

    Reply
  4. Karen K.

    Who are the 10% that won’t benefit from the new bill? When does this go into effect?

    Reply
  5. Scott

    Does that mean I can stop having the federal tax deducted from my monthly payment? I this for this year or next?

    Reply
  6. Chris

    What about people that are on disability but is not 65 & older? I am 63 who had a stroke and receiving disability and I want to know if I qualify.

    Reply
    • Michael

      People on disability under the age of 65 will get nothing!

      Reply
  7. David K.

    This is what I’ve been waiting for all my life.
    I just turned 65 this year and I’m still in the workforce, however, considering that social security benefits will be tax exempt soon, I may consider taking my benefits at my FRA of 67 years old rather than continuing to work until I’m 70 in order to get the 24% bump.
    Additionally, the $6,000 yearly tax deduction for those of us over 65 is just an added bonus.

    Reply
    • JT

      Do we need to re-calculate our 2025 quarterly estimated tax payments now?

      Reply
  8. Cheryl R.

    The details from the bill would be nice. Especially why you believe most beneficiaries will not be taxed on their social security.

    Reply
  9. Donna

    So who are the “most” that will not have to pay I come taxes.
    The article/blog didn’t expand enough…

    Reply
  10. Dan M.

    I will not believe anything the present administration has to say until I see a formal letter from SS to me. Trump is a
    Pathological liar and gives me no reason to believe otherwise

    Reply
    • Pat

      How correct you are, and the Social Security Admin should be ashamed to put out incorrect information.

      Reply

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