Here’s some welcome news if you’re retired: a major change in the new tax law means most retirees will no longer pay federal income tax on their Social Security benefits starting in 2025. That’s not a typo.
The so-called “One Big Beautiful Bill” added a special bonus just for seniors: an extra $6,000 standard deduction for taxpayers age 65 and over.
Combined with your regular deductions, this new senior bonus will help roughly 90% of retirees avoid federal tax on their Social Security income altogether. (Compare that to last year, when only about 64% of seniors avoided tax on Social Security.)
💡 Quick example:
If you’re Single and over 65, your standard deduction could be as high as $25,750 in 2025.
For Married Filing Jointly couples where both spouses are 65 or older, it could be $43,900.
That’s a lot of income shielded from tax.
Of course, there are still some limits—higher-income retirees (over $150K for MFJ / $75K for others) may not get the full benefit.
But overall, this is one of the most retiree-friendly changes we’ve seen in years.
Less tax could mean more room in your budget for travel, hobbies, or just breathing a little easier.
Interested in reducing your tax burden in 2025 and beyond? Our tax reduction consulting service is designed to help you take full advantage of recent changes in tax law. To schedule a meeting with an Easy Tax Service Professional, please call 928-775-7000 Ext 0 and speak with our receptionist.