In a bold July 4 speech, former President Donald Trump claimed that his new “One Big Beautiful Bill” would completely eliminate taxes on Social Security. The statement quickly made headlines, but fact-checkers and tax experts say his claim doesn’t match what the bill actually does.
While the message may sound good to millions of senior citizens, the truth is more complex, and the bill doesn’t entirely remove taxes on Social Security income. Instead, it provides a temporary tax break for some, not all.
What’s Really in the Bill?
Trump’s “One Big Beautiful Bill” includes a standard deduction increase for seniors — not a total tax repeal. Here’s what it does:
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People aged 65 or older get an extra $6,000 deduction.
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Married couples where both are over 65 get $12,000 off their taxable income.
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This applies to all income, not just Social Security benefits.
But there’s a catch.
This benefit starts phasing out if your income is above $75,000 (individuals) or $150,000 (couples). Once your income crosses a certain line, the tax break disappears completely. On top of that, it expires in 2028, meaning the savings are short-term.
Why Trump’s Statement is Misleading
Trump’s claim that the bill “eliminates taxes on Social Security” is not fully accurate for a few key reasons:
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It doesn’t end Social Security taxes — it just reduces taxable income for some seniors.
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Many low-income seniors already didn’t pay taxes on their benefits.
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High-income seniors won’t see much benefit at all.
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The change only lasts until 2028 — it’s not permanent.
Independent fact-checkers like PolitiFact rated Trump’s claim as “Mostly False.” And experts warn that millions of Americans will still pay taxes on their Social Security benefits under this bill.
Who Benefits and Who Doesn’t?
The bill mostly helps middle-income seniors, especially those who are just above the current threshold where taxes begin. According to early estimates:
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About 88% of seniors might avoid taxes on benefits — temporarily.
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People under 65 who claim early Social Security won’t get this new deduction.
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Wealthier retirees with incomes over the limit will still pay taxes on their benefits.
This means many older Americans may feel hopeful now, only to realize later that their tax burden hasn’t changed.
What This Means for the Future
Even though the bill may give short-term relief to some seniors, experts warn that it could make things worse in the long run. Social Security is already struggling, and reducing taxes — even temporarily — could drain the trust fund faster.
According to the Social Security Board of Trustees, the trust fund is expected to run out by 2033. Some analysts now say this new bill could move that date even closer to 2032, making the program less stable for future retirees.
Bottom Line
Donald Trump’s big promise that his bill “eliminates taxes on Social Security” is not entirely true. While it brings some temporary relief for select seniors, it doesn’t remove the tax entirely and won’t apply to everyone. The benefit expires in just a few years, and many seniors will still have to pay taxes.
It may be a good talking point, but it’s not the full picture.
