Social Security recipients across the U.S. continue to pay federal income taxes on their benefits in 2025, despite repeated political promises to eliminate them. Congressional hurdles and budget constraints have prevented significant reform.
Current taxation of Social Security benefits
Since 1983, Social Security benefits have been taxable depending on a retiree’s income level. These income thresholds have never been adjusted for inflation, pushing more older people into taxable brackets over time.
Here’s how the tax system currently works:
For single filers:
- Combined income between $25,000 and $34,000: up to 50% of benefits are taxable
- Combined income over $34,000: up to 85% of benefits are taxable
For married couples filing jointly:
- Combined income between $32,000 and $44,000: up to 50% taxable
- Combined income over $44,000: up to 85% taxable
Combined income includes adjusted gross income, non-taxable interest, and half of a taxpayer’s Social Security benefits.
Legislative efforts to eliminate the tax
Former President Donald Trump and some Republicans have advocated for the removal of the Social Security tax. However, the Byrd Rule limits what can be included in budget reconciliation bills, making it difficult to pass such changes without full bipartisan support.
There is also concern over how eliminating the tax would affect the Social Security Trust Fund, which relies in part on these taxes for solvency.
Instead of repealing the tax, Republicans have proposed a “senior bonus”—a $4,000 tax deduction for individuals aged 65 and older. The deduction applies to both standard and itemized filers and phases out at:
- $150,000 for married couples filing jointly
- $75,000 for all other filers
This measure aims to provide partial relief for older adults without fully eliminating the tax.
State-level Social Security taxes
While the federal government continues to tax benefits, some states are also taxing them. As of 2025, nine states impose taxes on Social Security:
- Colorado
- Connecticut
- Minnesota
- Montana
- New Mexico
- Rhode Island
- Utah
- Vermont
- West Virginia
Each state has its own income exemptions and phase-out rules, so residents should review their state’s tax agency website for up-to-date guidance.
What happens next
No federal legislation to eliminate Social Security taxes has passed as of May 2025. Although bipartisan support exists for reducing the burden on retirees, efforts continue to stall due to fiscal and procedural barriers.
Americans collecting Social Security should continue planning for potential tax obligations each year, especially as inflation-adjusted income pushes more recipients into higher brackets.
For updates, visit IRS.gov or check your state’s revenue department website.