What this bill proposes to do

The No Tax on Social Security Act, introduced in Congress in 2025, would prevent the federal government from taxing Social Security benefits. Currently, depending on your income level, you may owe federal income tax on a portion of your benefits — up to 85 percent of what you receive. This bill would eliminate that tax entirely for all beneficiaries.

The bill does not change how much Social Security you receive each month. It only changes whether the federal government can count those benefits as taxable income when you file your tax return. If the bill passes and becomes law, you would report your benefits differently on your tax forms, and fewer people would owe federal tax on them.

As of early 2025, this bill has been introduced but has not yet passed either chamber of Congress. Its status changes as the legislative session continues, so you should check Congress.gov or your representative's website to see the current vote count and timeline.

Key Takeaways

  • The bill would stop the federal government from taxing Social Security benefits, though it has not yet passed Congress.
  • Currently, beneficiaries with income above certain thresholds must include up to 85 percent of their benefits as taxable income.
  • If the bill becomes law, it would affect how you report income on your federal tax return but would not change your monthly benefit amount.
  • State taxes on Social Security benefits would not be affected by this federal bill, so some states may continue to tax benefits.

How Social Security is taxed right now

Social Security taxation depends on your combined income, which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits. The IRS uses two thresholds to determine how much of your benefit is taxable.

If you file as single and your combined income is between $25,000 and $34,000, you may owe tax on up to 50 percent of your benefits. If your combined income exceeds $34,000, you may owe tax on up to 85 percent of your benefits. For married couples filing jointly, the thresholds are $32,000 and $44,000. If your combined income falls below these thresholds, none of your benefits are taxable at the federal level.

These income thresholds have not changed since 1984, even though the cost of living has risen significantly. This means more beneficiaries fall into the taxable range each year, even if their actual income has not increased.

What would change if the bill passes

If this bill becomes law, the income thresholds would no longer matter. You would not include any portion of your Social Security benefits as taxable income on your federal tax return, regardless of how much other income you have. This would lower the federal tax burden for millions of current and future beneficiaries.

The change would apply to all beneficiaries — retirees, disabled workers, and survivors receiving benefits on a worker's record. It would not affect Supplemental Security Income (SSI), which is a separate needs-based program for people with low income and limited resources.

Your monthly benefit check would remain the same. The bill only changes the tax treatment of benefits you already receive; it does not increase or decrease the amount Social Security pays you.

State taxes on Social Security would not be affected

Thirteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The No Tax on Social Security Act is a federal bill and would only prevent federal taxation. It would not change whether these states can tax your benefits.

If you live in one of these states and receive Social Security, you should check your state's tax rules separately. Some states have their own income thresholds or exemptions for Social Security income. A state tax professional or your state's revenue department can tell you whether you would owe state tax on your benefits.

How to track the bill's progress

You can find the current status of this bill on Congress.gov by searching for "No Tax on Social Security Act" or the bill number (which varies by congressional session). The site shows whether the bill has been introduced, which committees it has been assigned to, and whether it has passed either chamber.

You can also contact your U.S. representative or senator directly to ask whether they support the bill and to express your own position. Their office websites list phone numbers and contact forms. Many representatives send updates about bills they sponsor or co-sponsor to constituents who ask to be notified.

Local news outlets and Social Security advocacy organizations also track major bills affecting benefits. If you subscribe to updates from groups like the National Council of Senior Citizens or the Social Security Works coalition, you will receive notifications when the bill's status changes.

What happens to people currently paying tax on benefits

If the bill passes, people who have already paid federal tax on Social Security benefits in prior years would not automatically receive refunds. Tax refunds for past years require filing an amended tax return (Form 1040-X) within the statute of limitations, which is generally three years from the original filing date.

However, some versions of similar bills have included provisions for refunds or credits for past taxes paid. The exact language of the bill as it moves through Congress may change, so you should read the final version if it passes to see whether it addresses prior-year taxes.

If you believe you overpaid federal tax on Social Security benefits in a prior year and the bill does not address refunds, you can still file an amended return on your own. A tax professional or the IRS can help you determine whether you are within the time limit to claim a refund.

Frequently Asked Questions

Would this bill affect my Medicare premiums?

No. Medicare premiums are based on your modified adjusted gross income (MAGI), which is calculated separately from federal income tax. Even if Social Security benefits are no longer taxable, they would still count toward your MAGI for Medicare premium purposes if the bill does not explicitly change that rule. You should check the final bill language to be certain.

If the bill passes, do I need to do anything to stop paying tax on my benefits?

You would not need to take action. Once the bill becomes law, the tax code changes automatically. When you file your next tax return, you would report your benefits differently based on the new rules. A tax professional or tax software would reflect the change.

Would this bill affect people receiving Supplemental Security Income?

No. SSI is a separate program with different rules. This bill applies only to Social Security retirement, disability, and survivor benefits. SSI recipients would not be affected.

What if I live in a state that taxes Social Security?

This federal bill would not change your state's tax rules. You would still need to follow your state's tax laws. Contact your state's revenue or tax department to find out whether you owe state tax on your benefits under current law.

When would this bill take effect if it passes?

The effective date depends on the final bill language. Most tax bills take effect on January 1 of the year after they are signed into law, but some bills have different effective dates. Once the bill passes, the text will specify when the change applies to tax returns.