President Donald Trump, in a speech given on the White House South Lawn before signing his “One, Big, Beautiful Bill” act into law, rolled out a confusing, and frequently criticized, claim about the monster legislation.
“We have delivered… no tax on Social Security for our great seniors,” said Trump, talking about the contents of the bill.
TRUMP: We have delivered no tax on social security for our great seniors pic.twitter.com/6loYTmKBac
— Acyn (@Acyn) July 4, 2025
The claim that the OBBB will remove tax on Social Security for seniors is one that has been routinely touted by both Trump and the White House. The problem is that it’s not technically true.
Tax provisions for those aged 65 and over within the bill, which will reduce the tax burden for some individuals, are temporary.
A $6,000 reduction is on offer for senior individuals, and $12,000 for couples, on all income—not just social Security payments. However, that tax break begins to be phased out for those on incomes over $75,000 (and $150,000 for couples) per year, and is removed entirely for those on $175,000 ($250,000).
Seniors on very low incomes, who already pay no federal tax on Social Security payments, are unlikely to see a direct benefit from the deduction while those on higher incomes will still pay taxes on a portion of their benefits.
For an eligible senior earning $75,000 per year, the full $6,000 tax deduction will work out to around $60 extra per month in their payments.
In addition, the tax breaks are only set to last until the end of Trump’s term in 2028.
Therefore, it is misleading to say that the OBBB will deliver “no tax on Social Security.”
“While the deduction does provide some relief for seniors, it’s far from completely repealing the tax on their benefits,” Garrett Watson, director of policy analysis at the Tax Foundation, told the Associated Press.
It’s the biggest bill of its kind ever done, by far,” Trump said in his speech, referring to the “no tax” claim.
However, seniors who are expecting to see no tax deductions on their next Social Security check may not be thrilled when they open it.
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