Older Americans can expect some important tax changes in 2026, largely due to provisions in last year’s One Big Beautiful Bill Act (OBBBA). One of the biggest changes is a new tax deduction that specifically targets seniors.
Whether you’re a retired senior or still working, you’ll want to familiarize yourself with the changes and how they might affect your Social Security and retirement planning this year.
Here’s a closer look:
The main thing to know about the new rules is that individual filers who are at least 65 years old can claim an additional $6,000 tax deduction on their returns in 2026. Married couples filing jointly can claim up to $12,000. This is on top of the standard deduction that already exists.
Here’s a breakdown for tax year 2025 (which you’ll file this year), according to a report from the Center for Retirement Research at Boston College (CRR).
Filing status
Base standard deduction
Normal extra deduction for 65+ filers
New bonus deduction
Total deduction (65+) under the OBBBA
Single
$15,750
$2,000
$6,000
$23,750
Married, filing jointly
$31,500
$3,200 (both 65+)
$12,000 (both 65+)
$46,700 (both 65+)
For tax year 2026, to be filed in 2027, the standard deduction is $16,100 for single filers 65 and older and $32,000 for those who are married/filing jointly, according to the IRS.
Learn More: What Will the Average Social Security Check Be for Retirees in 2026?
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As previously reported by GOBankingRates, the new tax law began in 2025 and will continue through 2028. To take full advantage before the change ends, consider doing a Roth conversion.
“For the next [few] years, taxpayers over 65 can convert $12,000 in pre-tax individual retirement accounts (IRAs) into tax-free Roth IRAs at zero tax,” said Kelly Gilbert of EFG Financial. “If you converted just the $12,000 each year, that would create a $48,000 Roth IRA growing tax-free.”
Another important thing to remember about the deduction is that it doesn’t apply to all seniors. Your income will play a big role in whether it applies to you.
As the CRR noted, the deduction begins to phase out for single taxpayers with annual incomes over $75,000 and married filers with incomes over $150,000. The phaseout is $60 for each $1,000 over the threshold. It is fully phased out at $175,000 for single filers and $250,000 for joint filers.
One thing the OBBBA didn’t do was eliminate taxes on Social Security benefits, according to a blog from Define Financial, a San Diego-based fiduciary registered investment advisor (RIA) that specializes in retirement, tax and investment planning for people over 50.
