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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. Kate

    This undermines SS. The object is to leave the people’s money alone and add to it by deleting cap for paying SS ($176,100). You are taking money from SS. Quit the propaganda.

    Reply
  2. Stephen B.

    My question is, Will the fedral tax credit add to ones monthly amount or will it be just a deduction from the actual tax form?

    Is the tax deduction additional to the federal savings, to ask this another way?

    Thank you!

    Reply
  3. Kev. B.

    Will this also include those who are on Social Security Disability, meaning will they also receive this benefit even if they have not reached the age 65?

    Reply
  4. Edna G.

    Is it true that if you reside outside the US you will no longer receive social security retirement benefits?

    Reply
  5. Ron F.

    When will this “Tax Relief” be implemented?

    I don’t understand it seems to say yes and no at the same time.

    Reply
  6. Ron F.

    When will this “Tax Relief” be implemented?

    Reply
  7. Marcie R.

    The July 3 statement made by the SSA, in response to the signing of the OBBB, is deeply inappropriate. The SSA is meant to serve the people of the United States who have contributed, and do contribute, assiduously to our retirements, through our social security. We know the truth is that our social security will become insolvent in less than 10 years, and we know the OBBB does nothing to change that. The July 3 statement is erosive of our trust in the SSA. We who are due to receive our earned social security benefits over the next decade (and beyond) urge the SSA to duly remove itself from self-politicization.

    Reply
  8. Paul

    The big beatiful bill sucks… I am 75 years old and think that I should not pay tax on tax I have paid in all these years…we never get a good cost of living allowance to keep up with inflation on any one over retirement age….if the democrats would not have taken money out of ssa many years ago all retirees would be getting double back…….put it back in. Surely they have the money now after all DOSE found all the money they took from the middle class .

    Reply
    • Lynnie C.

      President Reagan took SS funds long ago saying he was BORROWING them. They were never paid back.

      Reply
  9. Susanne A.

    Just another lie. Do you think we are stuoid?

    Reply
  10. Donna

    This article is not completely factual

    Reply

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