Could You Benefit from the New Senior Tax Break? Find Out If You Qualify for Lower Taxes

For seniors aged 65 or older, you might owe less in taxes when you file next year. A new senior tax break Trump’s new tax bill, the One Big Beautiful Bill (OBBB), offers an additional $6,000 standard deduction to Americans aged 65 and older.

This provision is only in place until 2028, so there’s a limited window to take advantage of it.We break down how it works, who’s eligible for it, and how it could inspire you to change your tax filing strategy.

Who Qualifies for the Senior Tax Break?

To be eligible for the deduction, a taxpayer must be 65 or older by the end of the tax year. The deduction applies to qualifying individuals as well as married couples filing jointly. For married couples, the deduction is $6,000 per qualifying individual, or $12,000 total.

While this deduction can offer some tax relief, higher-income earners will not qualify for the full benefit amount. The benefit starts phasing out for filers making more than $75,000, or joint filers making more than $150,000.

“Above those amounts, the deduction gradually phases out and disappears entirely at a combined income of $175,000 for singles and a combined income of $250,000 for married couples,” added Taucier Smalls-West, tax accountant and founder of West Financial Services, LLC.

The tax deduction may also reduce the amount of taxes you pay on your Social Security benefits. This is because Social Security benefits are taxed based on your combined income. This number includes your adjusted gross income (AGI), pensions, interest, dividends, and capital gains as well as half of the total Social Security benefits you collected that year.

“The IRS uses ‘combined income’ to determine whether a portion of Social Security benefits will be taxed,” explained Smalls-West. “Depending on that number, anywhere from 0% to 85% of benefits could be taxed.”

Therefore, by reducing your AGI, the senior tax break could also lower the amount of taxes you pay on your benefits, depending on your combined income.

How the New Senior Tax Deduction Works

This new deduction stacks on top of the existing standard deduction and other extra deductions. The pre-existing senior deduction is $2,000 for single filers, and $3,200 for couples filing jointly.

“Right now, seniors who take the standard deduction will already get an extra $2,000 (tax year 2025) each on top of the normal standard deduction,” explained Smalls-West. “Starting in tax year 2025, they’ll also be able to claim an additional $6,000, and the deduction can be taken whether they take the standard deduction or itemize deductions.”

The standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. With the additional $6,000 deduction per person, eligible seniors can deduct up to $23,750, and eligible couples up to $46,700.

Revisiting Your Tax Strategy

New changes in the OBBB may prompt older taxpayers to change how they approach tax filings, especially when choosing between the standard deduction and itemizing.

Since the Tax Cuts and Jobs Act (TCJA) became effective in 2018, the number of taxpayers who itemized has dropped dramatically, from around 30% to fewer than 10%. This is largely because the TCJA nearly doubled the standard deduction, making it a better option for most filers.

The OBBB builds on this shift by further boosting the standard deduction, especially for those 65 and older (although the senior tax break is available to those who itemize).

However, taking the standard deduction may not the best choice for everyone.

Seniors with higher medical costs, large charitable donations, or significant state and local taxes may still get higher savings if they itemize deductions, particularly in years with unusually high expenses. Additionally, the OBBB altered the state and local tax deduction (SALT), raising the amount of state and local taxes people could deduct from their income. As a result, itemizing may be more appealing to some taxpayers.

“For those near the income phase-out thresholds, timing and planning could make a big difference,” Smalls-West said. “Strategies like delaying retirement account withdrawals, deferring the sale of appreciated assets, or grouping large medical expenses and charitable contributions into the same tax year could help preserve eligibility for the deduction and maximize its impact.”

Overall, while the expanded standard deduction will likely be the default choice for most older adults, there will still be scenarios where itemizing offers better outcomes. Taxpayers should use the 2025 to 2028 window to evaluate whether their current tax strategies could still help maximize their tax efficiency under the new rules.

“Since this benefit is only guaranteed from 2025 through 2028, planning becomes even more critical — especially for seniors with fluctuating income,” Smalls-West said.

The Bottom Line

The senior tax deduction is one of several changes in the OBBB aimed at providing targeted tax relief to individuals and families. With the right planning, the new deduction could provide some additional tax savings.

Taxpayers nearing or over the age of 65 should consider speaking with a tax professional to ensure they understand how this change affects their specific situation and how to plan accordingly.