Will Your Social Security Benefits Be Taxed in 2026?

"For many retirees, being taxed on Social Security benefits comes as a huge shock. These benefits are earned benefits that come to you because you have paid Social Security taxes during your entire career. Given that you already paid into the system to qualify, it's understandable to assume that the government is not going to charge you more tax. Unfortunately, that's not necessarily the case."

"The act created a new, larger standard deduction for seniors, with those who are 65 and older now eligible for an extra $6,000 deduction. This does reduce taxes substantially for those who are eligible, especially since it is per person, so a married couple could claim a $12,000 deduction. However, the deduction is available regardless of whether you are on Social Security or not, as it is based on age, not Social Security beneficiary status."

Many retirees are subject to federal tax on Social Security benefits despite having paid Social Security taxes during their careers. The One Big Beautiful Bill Act did not change the long-standing rules that determine taxation of Social Security benefits. The act increased the standard deduction for seniors by $6,000 per eligible person, reducing some tax burdens and phasing out at $75,000 for single filers and $150,000 for married joint filers. The larger standard deduction does not eliminate taxation of Social Security benefits. Provisional income thresholds still determine whether up to 50% or up to 85% of benefits are taxable.

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