The newly passed One Big Beautiful Bill aims to reduce federal taxes on Social Security income for retirees, with significant implications for South Carolina. Starting in 2026, 88% of seniors nationwide are projected to pay no federal taxes on Social Security. The new tax law introduces a senior deduction of $6,000 for individuals and $12,000 for couples, boosting total deductions to $23,750 for individuals and $46,700 for couples over 65. Approximately 1 million South Carolina seniors will benefit from this policy change, alongside projected wage increases.
Starting in the 2026 tax year, 88% of seniors nationwide will owe nothing in federal taxes on their Social Security income, according to the White House. That's up from just 64% today and translates to 14.2 million more retirees keeping their full benefit checks.
This change is driven by a new senior deduction of $6,000 for individuals and $12,000 for married couples, layered on top of existing standard and senior deductions.
South Carolina is home to 5.37 million people, with 1.05 million residents aged 65 and older - accounting for 19.3% of the state's population. An estimated 1 million South Carolina seniors will qualify for the Social Security tax exemption provided by the new law.
In addition to the deduction, the state is projected to see real wage increases of $3,300 to $6,000 and take-home pay boosts up to $9,800, offering modest but meaningful relief to senior households still in the workforce.
Collection
[
|
...
]