The 2025 tax law was often described as ending tax on Social Security. It didn't. The rules that decide how much of your benefits are taxable haven't changed. What the law added is a new $6,000 deduction for each person 65 or older, for tax years 2025 through 2028. For many retirees that deduction offsets the tax on their benefits, but not for everyone.
How Social Security is still taxed
Up to 85% of your benefits can be taxable, depending on your “provisional income”: your other income plus half your benefits.
| Provisional income | Single | Married filing jointly |
|---|---|---|
| No benefits taxable | Under $25,000 | Under $32,000 |
| Up to 50% taxable | $25,000 to $34,000 | $32,000 to $44,000 |
| Up to 85% taxable | Over $34,000 | Over $44,000 |
These thresholds aren't adjusted for inflation and the new law didn't touch them. The senior deduction is taken after AGI, so it doesn't change how much of your benefits is taxable. It lowers your taxable income instead.
Three examples for 2026
1. Single, 68, with Social Security and an IRA
$24,000 of benefits and $30,000 of IRA withdrawals. Provisional income is $42,000, so $11,300 of benefits are taxable and AGI is $41,300. Standard deduction including the age-65 extra: $18,150. Federal tax before the senior deduction: $2,530. After the $6,000 deduction: $1,810. Saving: $720.
2. Married, both 70
$40,000 of combined benefits and $50,000 of pension and IRA income. $28,100 of benefits are taxable, so AGI is $78,100. Standard deduction with both age-65 extras: $35,500. Two senior deductions of $6,000 each cut federal tax from $4,616 to $3,176. Saving: $1,440.
3. Single, 66, living only on Social Security
$30,000 of benefits and no other income. Provisional income is $15,000, under the $25,000 threshold, so none of the benefits are taxable and the federal tax is already $0. Saving: $0. The deduction can't help people who owe no income tax.
Who gets the deduction
- You're 65 or older by December 31 of the tax year. You don't have to be collecting Social Security.
- Your Social Security number is on the return. Married couples must file jointly.
- Each $6,000 is reduced by 6% of modified AGI over $75,000 ($150,000 joint). It's gone at $175,000 single and $250,000 joint.
- It stacks with the regular extra standard deduction for age 65 ($2,050 unmarried, $1,650 per married spouse for 2026), and you don't need to itemize.
Planning tips
IRA withdrawals and Roth conversions raise both your provisional income and your modified AGI. If you're near $75,000 (or $150,000 joint), spreading them across years can protect more of the deduction. The senior deduction calculator shows how much of the $6,000 you keep at any income.
Common questions
Is Social Security tax-free now?
No. The same rules decide how much of your benefits is taxable. The new $6,000 deduction lowers taxable income for people 65 and older, which offsets some or all of that tax for many retirees.
Do I need to collect Social Security to get the $6,000 deduction?
No. It's based on age (65 or older), not on receiving benefits.
Does the senior deduction reduce my AGI?
No. It's claimed on Schedule 1-A after AGI, so it doesn't change how much of your Social Security is taxable or your Medicare IRMAA income.
When does the senior deduction end?
After tax year 2028 under current law.
Sources
- IRS FS-2025-03: Tax deductions for working Americans and seniors
- IRS: Tax year 2026 inflation adjustments (Rev. Proc. 2025-32)
- Social Security Administration: Taxes on benefits and how to request withholding
- IRS Publication 915: Social Security and equivalent railroad retirement benefits
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