Trump Only Partly Delivered On Social Security’s ‘No Tax’ Promise

When President Trump was running for office, he made Social Security a pretty notable talking point. And one thing he promised to do was get rid of taxes on Social Security benefits.

There’s a reason those taxes have long been a sore spot. First, the income levels at which they apply are very low, leaving many retirees with only moderate incomes paying taxes on retirement benefits.

But also, Social Security benefits are earned by paying taxes on wages. To then have those benefits taxed seems like the federal government is coming after people twice for the same thing.

Following a big change to the tax code in 2025, many seniors are no longer required to pay taxes on their Social Security benefits. But that reprieve is only temporary. And it’s important to recognize that President Trump only partially delivered on his promise to make those taxes go away.

Why most Social Security recipients aren’t paying taxes on benefits now

Last year, the One Big Beautiful Bill Act was signed into law. And one of its provisions was a $6,000 senior tax deduction. As a result of that deduction, the majority of people who are collecting Social Security are not required to pay taxes on their monthly benefits today.

But those taxes did not go away. And in a few years from now, a lot more seniors may end up paying them.

The new $6,000 senior tax deduction is only applicable for tax years 2025 through 2028. This means that in just a few years, this massive tax break goes away. And once that happens, anyone who got out of paying taxes on Social Security benefits because of it will most likely be back on the hook.

Furthermore, each year, Social Security benefits are eligible for a cost-of-living adjustment (COLA). It’s too soon to know what 2027’s raise will be, or what COLA seniors will be looking at in 2028.

But as Social Security benefits increase because of COLAs, more seniors are likely to end up having to pay taxes on those monthly checks. That’s because the value of Social Security benefits is included in the formula that determines whether they’re taxed or not.

It’s also worth noting that there are certain groups of people today who aren’t exempt from paying taxes on Social Security benefits. First, the new $6,000 deduction phases out for higher earners, so those who don’t qualify for it won’t get a break on having their benefits taxed, either.

The $6,000 tax deduction is also only available to seniors 65 and older. But it’s possible to claim Social Security starting at 62. So early claimants may be at risk of paying taxes on their benefits if they have a lot of non-Social Security income.

It’s important to understand the finer details

Because so many people aren’t paying taxes on their Social Security benefits right now, it’s easy to assume that those taxes went away — especially since Trump argued so adamantly that seniors shouldn’t have to pay them.

But the reality is that taxes on Social Security benefits aren’t gone. And come the 2029 tax year, you may find yourself paying them, even if you’re exempt through 2028. That’s an important thing to prepare for so it doesn’t throw your finances and budget for a complete loop.

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