A federal tax reform will shield most Social Security income from federal taxation, significantly reducing tax burdens for seniors. Nationwide, 88% of Social Security recipients will pay no federal income tax on benefits beginning in the 2026 tax year, up from 64%, adding 14.2 million seniors who keep more retirement income. The change includes a senior-specific deduction of $6,000 for individuals and $12,000 for married couples over 65. Combined with other deductions, eligible filers can claim up to $23,750 (individuals) or $46,700 (couples), effectively eliminating taxable Social Security income in many cases. Wyoming’s senior population is growing despite the state’s small overall population.
Under the One Big Beautiful Bill, seniors will see their Social Security income shielded from federal taxes-an adjustment projected to benefit 100,000 retirees in the state. The White House reports that 88% of Social Security recipients will pay no federal income tax on those benefits beginning with the 2026 tax year. That's up from just 64% under previous law and represents 14.2 million additional seniors keeping more of their retirement income.
This dramatic shift is powered by a new senior-specific deduction: $6,000 for individuals and $12,000 for married couples over 65. Combined with existing deductions, eligible filers can claim up to $23,750 (individuals) or $46,700 (couples), effectively eliminating taxable Social Security income in most cases.
A sweeping federal tax reform is expected to offer meaningful relief to older homeowners across Wyoming. Although Wyoming is the least populous state, its senior population is growing.
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