The One Big Beautiful Bill Act (OBBBA) introduces a senior-specific deduction shielding Social Security income from federal tax, benefiting approximately 700,000 retirees in Louisiana. This new deduction of $6,000 for single filers and $12,000 for married couples filing jointly, layered with increased standard deductions, means 88% of seniors will be exempt from federal taxes on Social Security benefits. This relief is further supported by projected wage gains of $3,000 to $5,400, allowing for substantial increases in take-home pay for many households in the state, while total deductions could reach $23,750 for single seniors and $46,700 for couples in 2026.
Under the OBBBA, the tax code now includes a new senior-specific deduction of $6,000 for single filers and $12,000 for married couples filing jointly-if both spouses are 65 or older.
Combined, these changes mean 88% of seniors will no longer pay federal tax on their Social Security benefits, a sharp rise from 64% under prior law.
The deductions total $23,750 for single seniors and $46,700 for married couples, according to U.S. Treasury figures for tax year 2026.
Workers are projected to experience real wage gains of $3,000 to $5,400, with take-home pay rising between $6,600 and $9,200.
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