Federal tax law introduces a senior deduction of $6,000 for individuals and $12,000 for married couples over 65, added to existing standard and senior deductions. Combined deductions can reach $23,750 for individuals and $46,700 for couples. The White House projects 88% of seniors receiving Social Security will no longer owe federal taxes on those benefits starting in the 2026 tax year, up from 64%, lifting 14.2 million retirees out of federal taxation on benefits. In Virginia, about 1.5 million residents aged 65 and older are expected to qualify for the exemption. The change will meaningfully increase monthly income for most retirees.
A sweeping federal tax change is poised to bring meaningful relief to Virginia's retirees. Thanks to the One Big Beautiful Bill, a new deduction for seniors will sharply reduce-or eliminate entirely-federal taxes on Social Security income. In Virginia, about 1.5 million residents aged 65 and older are expected to qualify for the exemption. The White House says 88% of all seniors r eceiving Social Security will no longer owe federal taxes on those benefits beginning in the 2026 tax year.
That's a sharp increase from the current 64%, representing 14.2 million more retirees keeping more of their monthly income. This change stems from a new senior tax deduction-$6,000 for individuals and $12,000 for married couples over 65-added on top of existing standard and senior deductions. Combined, these deductions could reach $23,750 for individuals and $46,700 for couples. Virginia has one of the largest and fastest-growing senior populations in the Mid-Atlantic.
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