During a national address on the war in Iran from the Cross Hall of the White House, President Donald Trump briefly turned to social security and taxes.
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“With our historic tax cuts, where people are just now talking about receiving larger refunds than they ever thought possible, they are getting so much more money than they thought. That’s from the great big, beautiful bill,” Trump said in his April 1 speech.
The “Big, Beautiful Bill” did not include a provision eliminating Social Security taxes for retirees, but it did provide some tax relief to millions of older Americans. Here’s what it means, and what retirees should do next.
Rather than directly eliminating taxes on Social Security benefits, the new law added a senior deduction. Seniors over the age of 65 can now claim an additional $6,000 deduction per taxpayer from 2025 through 2028, which is also available to itemizers.
While the White House framed the policy as “no tax on Social Security, ” the change comes through expanded deductions rather than a direct repeal.
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For that reason, many seniors will no longer owe taxes on their benefits. According to an analysis from the Council of Economic Advisers, 88% of all seniors who receive Social Security will pay no tax on their Social Security benefits.
Retirees should focus on how these tax changes may affect their taxable income rather than assume Social Security benefits are tax-free. Income still matters.
According to Congress.gov, taxes on Social Security are based on the taxpayer’s Social Security benefits, other taxable income, filing status and other factors. Benefits become taxable once provisional income exceeds $25,000 for single filers and $32,000 for married couples filing jointly. Generally, up to 85% of benefits may be taxable.
The new senior deduction can reduce taxable income, which is why many retirees may not owe taxes on their benefits. Some retirees with earned income may also qualify for additional tax credits. According to the IRS, the Earned Income Tax Credit (EITC) is available to low- to moderate-income taxpayers. For the 2025 tax year, the maximum income limit to qualify is $68,675.
However, income from retirement accounts, pensions or part-time work may put some retirees above the taxable threshold. To take advantage of “no tax on Social Security,” retirees should review their total income and be wary of withdrawals from retirement accounts, which could increase provisional income.
