How the $6,000 ‘senior deduction’ in the big GOP bill will work

President Donald Trump’s push to help Americans over the age of 65 may be possible with a provision in the “big, beautiful bill,” which passed the Senate on Tuesday.

Trump’s Council of Economic Advisers noted that the bill “delivers on President Trump’s promise of No Tax on Social Security,” providing the  “largest tax break in American history for our nation’s seniors.”

“The One Big Beautiful Bill provides a new bonus deduction of $6,000 for seniors age 65 and older ($12,000 for married seniors) beginning in 2025,” the overview explained, noting the provision, which does not wipe out taxes on Social Security, would be in addition to current standard deductions.

No Tax on Social Security is a Reality in the One Big Beautiful Bill https://t.co/vpcDJRbEzU

— Rapid Response 47 (@RapidResponse47) July 1, 2025

The break would benefit 88 percent of seniors, an increase from the 64 percent “who are currently exempt from Social Security taxes, meaning about 14 million additional seniors will benefit from the change,” The Hill reported.

“The new $6,000 senior deduction is estimated to benefit 33.9 million seniors, including seniors not claiming Social Security,” the Council noted.

“The deduction yields an average increase in after-tax income of $670 per senior who benefits from it. It is subject to a phase out at a 6% rate for single taxpayers with income over $75,000 and for married filers with income over $150,000.”

For a senior filing as a single taxpayer receiving the current average retirement benefit of ~$24k:

Under the OBBB, this senior would be entitled to $23,750 in deductions; the $15,750 standard deduction, the $2k current-law add’l deduction & the $6k OBBB senior deduction pic.twitter.com/8kBtUps6lc

— Council of Economic Advisers (@CEA47) July 1, 2025

According to a 2024 report prepared by the Administration on Aging, seniors in 2022 had a median income of about $30,000.

Marc Goldwein of the Committee for a Responsible Federal Budget (CRFB) explained that the new benefit may not make much of a difference for low-income seniors.

“While it may be pitched as going to low-income seniors, low-income seniors don’t pay taxes already,” he told The Washington Post.

No tax on Social Security!

PASS THE ONE BIG BEAUTIFUL BILL pic.twitter.com/VPdaxD1OtO

— The White House (@WhiteHouse) July 2, 2025

“This amounts to the largest tax break in history for America’s seniors — and makes sure that after years of earning their Social Security, seniors can save more of their money,” the White House noted.  “Promises made, promises kept.”

Senior Staff Writer
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Originally from New York, Powers graduated from New York University and eventually made her way to sunny South Florida where she has been writing for the BizPacReview team since 2015.

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