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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Thomas
I don’t understand, what don’t people who collecting Social Security have to pay taxes on ? Taxes on their monthly Social Security check or the taxes on the money that they are earning by working part time?
Samantha P.
I can’t find a straight answer for this question:
I NEED to know how the “no tax on Social Security” (or the $6000 deduction) effects our household Adjusted Gross Income [AGI]). According to my state’s health care exchange, we cannot go over a certain income amount, or we’ll be heavily penalized at tax time next year.
I’m trying to pay off debt we accrued mostly during the last administration, but if I take out “too much” from our IRA, it defeats the purpose!
SO, can someone PLEASE tell me… How does the OBBB effect our AGI?
Karen M.
If you’re on a state health care exchange, then aren’t you under age 65? Under 65 doesn’t qualify for the additional standard deduction (6K individual, 12K married). If you are covered by the ACA (ie Obamacare) and are getting the enhanced subsidies, they are set to expire at the end of the year (2025) if Congress doesn’t extend them.
A L.
This is a total l1e. The legislation included a temporary increase in the standard deduction.
Jean F.
This letter is a disgusting use of federal government resources and taxpayer money. It is a blatant weaponization of OUR federal government in the service of Trump. It’s an advertisement, not a simple, straightforward, truthful explanation of benefits. Kristi Noem is doing network TV campaign ads for Trump; now this from Social Security. How far we have fallen.
Maureen K.
While married couples earning $150,000.00 or less per year will get an additional $6,000.00 deduction off of their adjusted gross income, this is not even close to eliminating the tax on Social Security. It simply means that a married couple will pay no tax on an additional $6,000.00 of income after the standard/senior deductions are applied, and a single person will pay no tax on an additional $3,000.00 of income after the standard/senior deductions are applied. On top of that, it doesn’t appear to be a permanent tax cut.
Martha G.
This post explains nothing of the detail of the credit or exemption and who it applies to. Its useless
Vickie
When does this go into effect?
Paul
Very well done President Trump and Congress…
Continued Success
Jennie F.
What is the enhanced benefit for age 65 and older?
Joseph K.
Will this be effective when filing income taxes for 2025?