"Under the One Big Beautiful Bill, a newly created "senior deduction" will eliminate federal taxes on Social Security for most recipients, affecting an estimated 200,000 South Dakotans over 65."
"88% of all seniors receiving Social Security will owe no federal income tax on their benefits beginning in 2026. This represents 14.2 million seniors nationwide."
"The law introduces a $6,000 senior deduction for individuals and $12,000 for couples, which could lead to combined deductions of $23,750 for singles and $46,700 for couples."
"Projected take-home pay gains for seniors could be up to $10,000, aiding in managing rising housing and living costs."
A new federal tax overhaul is set to cover most retired homeowners in South Dakota by introducing a "senior deduction," which will eliminate federal income taxes on Social Security for most recipients. Beginning in 2026, an estimated 88% of seniors will see their tax burdens erased, with a new deduction of $6,000 for individuals and $12,000 for couples. Seniors could expect increased wages and take-home pay gains up to $10,000. However, those already earning below taxable income or high-income seniors may not benefit as significantly from the changes.
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