Big Win for Seniors: New Law Ends Federal Taxes on Social Security for Most Retirees

Russell Sawayn
Published Jul 15, 2025

Big Win for Seniors: New Law Ends Federal Taxes on Social Security for Most Retirees

Big news for retirees: Most Social Security recipients will soon keep more money in their pockets.

The One Big, Beautiful Bill, recently signed into law, removes federal income taxes on Social Security benefits for nearly 90% of seniors, offering immediate financial relief to millions across the country.

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What Changed?

Previously, many seniors had to pay federal taxes on part of their Social Security checks, reducing the income they depend on for living expenses.

This new law:

  • Eliminates federal income taxes on Social Security benefits for most seniors

  • Provides larger deductions for taxpayers 65 and older

  • Allows retirees to keep more of what they’ve earned over a lifetime

Read: Ready for $5,000 Monthly? 4 Steps to Boost Your Social Security in 2026
 

Why This Matters for Seniors

With rising costs for housingfood, and healthcare, every dollar matters for those living on a fixed income. This change means:

  • Bigger Social Security checks each month

  • More money for medications, groceries, and bills

  • Greater financial stability in retirement

 

Do You Need to Take Action?

The Social Security Administration will apply these changes automatically, so most retirees don’t need to do anything.

You will notice the tax savings when you file your taxes for 2025 and beyond.

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