Social Security: Ending Federal Income Taxes on Benefits
This bill is currently in the House Committee on Ways and Means. It has not moved since January 31, 2025, and the committee must take action for it to proceed. Most bills like this do not receive a vote and do not move forward.
Ending this tax is very popular with voters but extremely expensive for the government, making it difficult to get enough support in both the House and Senate.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Part of the tax collected on Social Security benefits currently flows into the Medicare Hospital Insurance Trust Fund. The bill directs the Treasury to replace that lost revenue dollar-for-dollar out of general funds, so the Medicare trust fund itself would not lose money even though the underlying tax is eliminated.
“There are hereby appropriated (out of any money in the Treasury not otherwise appropriated) for each fiscal year to each fund under the Social Security Act (including the Federal Hospital Insurance Trust Fund) or the Railroad Retirement Act of 1974 an amount equal to the reduction in the transfers to such fund”
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Analysis of the One Big Beautiful Bill Act shows that while it provides a temporary $6,000 deduction for seniors, it does not fundamentally repeal the federal income tax on Social Security benefits as promised, leaving millions still liable for taxes based on their total income.
President Trump and GOP leaders claim the new tax package eliminates taxes on Social Security. However, the Joint Committee on Taxation reports that 24 million Americans will still pay taxes on benefits because the bill relies on a limited deduction rather than a full repeal.
The new law includes a provision that effectively eliminates federal income taxes for most beneficiaries through an age-based deduction. However, this benefit is temporary, set to expire in 2028, and includes strict income limits for single and joint filers.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
No Tax on Social Security
Analysis generated by AI. Always verify with official sources.