No tax on Social Security: How Trump's 'zero tax' proposal could benefit most seniors
As Social Security marks its 90th anniversary, the Trump administration is celebrating what it dubs a transformative victory for retirees.
The newly passed One Big Beautiful Bill aims to deliver on President Trump‘s pledge of “no tax on Social Security” by offering sweeping relief to older Americans.
According to the administration, the legislation ensures that “the vast majority of seniors who receive social security” will owe “absolutely nothing in taxes on their benefits.”
Liz Huston, White House Assistant Press Secretary, declared: “While Democrats flail and peddle lies about Social Security, President Trump is demonstrating his unbreakable commitment to protecting and strengthening this vital program for the nearly 72 million Americans who benefit from it. By massively improving the customer service experience through technological improvements, preventing illegal aliens from accessing benefits, and delivering no taxes on Social Security through the One Big Beautiful Bill, President Trump has made Social Security great again.”
A major tax break, but not a permanent repeal
In an accompanying blog post, the Social Security Administration praised the legislation, noting it “ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits.”
The SSA said the enhanced deduction for taxpayers aged 65 and older lets retirees “keep more of what they earned.”
Inside the zero-tax claim: Real benefits and limitations
Despite bold claims, tax analysts point out that the law does not fully repeal taxes on Social Security benefits.
Instead, it introduces a temporary enhanced standard deduction of up to $6,000 for those aged 65 and older, set to take effect from 2026 through 2028, with deductions phasing out for higher-income earners.
According to the Tax Policy Center and other observers, only about half of recipients stand to benefit, many low-income seniors pay no taxes already, while upper-income retirees may not qualify due to phase-outs.
Moreover, the temporary nature of the deduction, expiring after 2028, has raised concerns about sustainability. Critics warn this measure could accelerate the depletion of the Social Security Trust Fund by a year, potentially hastening insolvency timelines from 2033 to 2032, or even earlier.
Broader context and implications
The tax relief provision forms part of a broader legislative package that includes sweeping tax cuts for businesses, enhanced border and security funding, and customer-service upgrades for the SSA.
In the 90th-anniversary proclamation, President Trump also touted technological enhancements and reductions in office wait times as evidence that Social Security is “stronger, faster, and more secure.”
However, experts caution that while this move may offer short-term relief, especially to baby boomers, it may deepen structural vulnerabilities. Reports warn of reduced revenues flowing back into the Social Security Trust Fund, impairing its ability to sustain benefits over the long haul.