A recent federal tax change, part of the One Big Beautiful Bill, is set to greatly benefit Texas retirees by eliminating federal taxes on Social Security income for most recipients. Approximately 4 million retirees in Texas are expected to qualify for a new senior-focused deduction of $6,000 for individuals and $12,000 for married couples, potentially totaling $23,750 for individuals and $46,700 for couples over 65. This policy shift aims to increase the number of seniors free from federal tax liability on Social Security income from 64% to 88%, assisting 14.2 million seniors nationwide.
The One Big Beautiful Bill introduces a senior-focused deduction that will eliminate federal taxes on Social Security income for most recipients. In Texas, about 4 million retirees are expected to qualify for this deduction.
The new law provides a deduction of $6,000 for individuals and $12,000 for married couples, which, combined with existing deductions, can total $23,750 for individuals and $46,700 for couples over 65.
This law is expected to eliminate federal tax liability on Social Security for an estimated 88% of recipients, significantly increasing the percentage benefitting from such deductions.
The 24-point increase in tax relief will allow an additional 14.2 million seniors nationwide to retain more of their retirement income.
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