88% of Seniors Won’t Pay Taxes on Social Security If One Big, Beautiful Bill Passes, Analysis Finds

More than 51 million seniors would pay no taxes on Social Security income under the proposed “One Big, Beautiful Bill,” according to a new report Tuesday by the White House Council of Economic Advisers.  

The legislation includes the largest tax break in American history for seniors, according to the report, which means that “88% of seniors receiving Social Security benefits will pay no tax on their benefits under the OBBB [One Big, Beautiful Bill] as a result of their total deductions exceeding their taxable Social Security benefits.”

The One Big, Beautiful Bill is a tax and spending proposal that includes a new bonus tax deduction of $6,000 for seniors age 65 and older. It would be $12,000 for married seniors beginning this year. That’s on top of the existing standard deduction. 

The Council of Economic Advisers’ report goes through several scenarios for both single and married senior citizens. 

“First, consider the case of a senior filing as a single taxpayer receiving the current average retirement benefit of approximately $24,000 (per Social Security Administration data),” the report says. “The maximum amount of Social Security included in taxable income is 85% of the benefit, which would be $20,400 in this case. Under the OBBB, in 2025, this senior would be entitled to $23,750 in deductions—the $15,750 standard deduction, the $2,000 current-law additional deduction, and the $6,000 new OBBB senior deduction—meaning that the OBBB would lead to deductions that exceed the senior’s taxable Social Security income.”

The report also gives an example of a married couple: “Second, consider a married couple of seniors, both receiving the average $24,000 Social Security income. The couple will have a total of $48,000 in annual income, of which at most 85% is taxable ($40,800). Under the OBBB, this couple would be entitled to deductions that exceed their taxable Social Security income.”

The One Big, Beautiful Bill has the strong backing of President Donald Trump, as it funds many of his campaign promises while keeping his tax cuts from the 2017 Tax Cuts and Jobs Act, which are otherwise set to expire at the end of the year, in place. 

Most congressional Republicans and the GOP leadership support the overall bill. However, some Republican lawmakers have expressed misgivings over the amount of spending in it while Democrats are unified against it. 

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