Bipartisan Push to End Social Security Taxes Could Mean Bigger Checks for Millions

Social Security plays an important role in a lot of people's retirement plans. Not only does it serve as guaranteed income, but benefits are also eligible for an annual inflation adjustment. That means seniors get protection from rising costs through the years.

But if there's one major problem with Social Security, it's that not all recipients get to keep their benefits in full. Thanks to an outdated rule, Social Security benefits can be subject to taxes, and the thresholds at which those taxes apply are very low.

The good news is that two new bills seek to eliminate taxes on Social Security, and if they come through, they could lessen the financial strain for many retirees.

Taxes on Social Security are a big burden

Since 1984, a portion of Social Security benefits have been subject to taxes at the federal level. The problem is that the income thresholds at which those taxes apply are very low and have not been adjusted for inflation in decades.

Social Security benefit taxation hinges on provisional income, which is calculated as the sum of adjusted gross income, tax-exempt interest income, and 50% of annual Social Security payments.

Taxes on benefits apply when provisional income equals or exceeds $25,000 for single tax-filers and $32,000 for married couples filing jointly. For singles, a provisional income over $34,000 means being taxed on up to 85% of benefits. The same consequence applies to married folks with provisional income above $44,000.

As of May 2026, the average Social Security retirement benefit was about $2,083. That means a single retiree with a provisional income of $40,000, which isn't all that large, could be subject to taxes on up to $1,771 of their Social Security check each month. The exact tax bill to ensue would depend on that person's total income picture and marginal tax rate.

The OBBBA gives Social Security recipients a temporary reprieve

Trump's One Big Beautiful Bill Act, or OBBBA, has been a boon to seniors on Social Security. That's because it included a $6,000 senior tax deduction that reduces many Social Security recipients' provisional income below the thresholds where taxes on benefits apply.

An estimated 88% of seniors on Social Security are now exempt from having their benefits taxed thanks to the OBBBA. But the new senior tax deduction did not eliminate the obligation to pay taxes on Social Security benefits.

Not only that, but the $6,000 senior deduction is set to expire in 2028. This means that a good number of seniors who are not paying taxes on their Social Security benefits now may have to start paying in a few years.

Two bills seek to eliminate taxes on Social Security

In April of 2025, U.S. Representative Angie Craig reintroduced a bill to eliminate federal taxes on Social Security benefits. Called the You Earned It, You Keep It Act, the bill seeks to raise the wage cap for Social Security taxes to make up for the lost revenue that would come with getting rid of taxes on benefits. The wage cap currently sits at $184,500.

The Senior Citizens Tax Elimination Act, meanwhile, was introduced in February 2025 by U.S. Senators Tommy Tuberville and Tim Sheehy. Tuberville called taxes on Social Security benefits a "second tax." The bill seeks to get rid of those taxes without introducing additional tax increases to compensate.

Unlike the OBBBA, both of these bills, if signed into law, would serve as a permanent fix to the problem of taxes on Social Security benefits.

Getting rid of taxes on Social Security may be an uphill battle

This isn't the first time lawmakers have fought to eliminate taxes on Social Security checks. Even President Trump himself established that as a big goal during his presidential campaign.

But those seeking to eliminate taxes on Social Security may face an uphill battle. Not only would lawmakers need to agree on a proposal, but taxes on benefits help fund Social Security. And at a time when the program is facing a funding shortfall that could result in widespread benefit cuts, Congress may ultimately be loath to adopt a law that virtually guarantees less revenue.

Bottom line

When seniors' retirement savings are stretched thin, Social Security benefits are often able to come to the rescue. But losing a chunk of those benefits to taxes really stings for seniors who aren't wealthy per se, but have a high enough income to be subject to taxes.

If taxes on Social Security were to be eliminated, it could spare many retirees a world of financial stress. So the fact that lawmakers are pushing that agenda is a positive thing. Seniors do need to realize, though, that lawmakers might face some hurdles, and that getting rid of taxes on Social Security benefits could exacerbate the solvency issues the program is already facing.