11 Tax Breaks That Get Better With Each Birthday

Getting older comes with a few perks, including the ability to tap into better tax breaks. Learning more about these opportunities can help you create a tax strategy that will set yourself up for retirement.

Here are 11 tax breaks that get better as you age.

Throughout your working years, you can make tax-advantaged contributions to retirement accounts, such as a 401(k) or IRA.

Once you turn 50, you are allowed to contribute higher amounts. This is known as the "catch-up contribution."

For example, in 2025, anyone can contribute up to $7,000 to their IRA. But those aged 50 and over can contribute an additional $1,000.

For 401(k) plans, anyone can contribute $23,500, plus an additional $7,500 over that limit if you are at least 50.

Not only can this help you save on your tax bill, but it can also help you build up a nest egg before retirement.

The SECURE 2.0 Act of 2022 contained a provision that allows those ages 60 to 63 to make even larger catch-up contributions.

Beginning this year, workers ages 60 to 63 can make an enhanced catch-up contribution of $11,250. That amount will be adjusted higher in future years.

People aged at least 65 years — or who have a disability — may be eligible for the Credit for the Elderly or the Disabled. The credit amount ranges from $3,750 to $7,500 and depends on your filing status.

In order to qualify, taxpayers must be at least 65 years old — or retired on permanent and total disability and receiving taxable disability income.

Additionally, adjusted gross income must be below specific limits, which vary based on the household.

Millions of people contribute money to retirement accounts throughout their working years. Upon reaching the age of 59.5, these workers can start to make penalty-free withdrawals from both IRAs and 401(k) plans.

Prior to that age, most withdrawals come with a 10% early withdrawal penalty.

A health savings account (HSA) provides you with a tax-advantaged way to save for health-related expenses. When you reach age 55, you can begin to contribute an additional $1,000 to this type of account.

HSA contributions must stop once you enroll in Medicare. But prior to that point, you can continue to save in an HSA, and you can tap the account during retirement.

The IRS offers free tax help for people aged 60 and older through the Tax Counseling for the Elderly (TCE) program.

Although most taxpayers use the program during tax season, you can lean on this free tax advice at any point during the year.

The vast majority of states — 41 — do not tax Social Security benefits.

However, you may still owe federal taxes once you begin to collect Social Security. Your income will determine whether you owe these taxes.

For taxpayers aged 70.5 and older, qualified charitable distributions (QCDs) may present a tax-saving opportunity worth exploring.

QCDs allow you to give to an eligible charity directly from your IRA. Doing so can keep your required minimum distribution (RMD) out of your adjusted gross income.

Ultimately, this can mean lowering your tax burden and supporting a charity at the same time.

Seniors who are at least 65 years old see their tax-filing threshold increase.

For example, for single filers in 2024, the minimum gross income required to file a return was $14,600 for those under 65 years and $16,550 for people 65 or older.

For married filing jointly taxpayers, the minimum amount to file a return was $29,200 for couples where each person was under 65 and $32,300 for a couple in which both partners are aged 65 and older.

Taxpayers age 65 and older get a larger standard deduction than younger filers.

For 2025, the standard deduction for most adult single taxpayers is $15,000. For those age 65 and older, the deduction increases by $2,000.

The standard deduction for married taxpayers filing jointly is $30,000. For those age 65 and older, the deduction increases by $1,600 per spouse who is 65 years old.

In some states, seniors who are at least 65 years old can enjoy property tax exemptions. At least 12 states currently offer some type of property tax break to seniors:

• Alabama
• Alaska
• Florida
• Georgia
• Hawaii
• Mississippi
• New Hampshire
• New York
• South Carolina
• South Dakota
• Texas
• Washington

Although the size of the tax break varies based on your state and unique situation, any break can make a difference to your budget.

Seniors can tap into a wide range of tax breaks. If you are planning for retirement, taking advantage of these tax breaks can give your budget some breathing room.

These tax breaks can really add up. If you have questions about your unique tax situation, consider working with a competent tax professional.