What 2026 Senior Tax Deduction Means for Social Security and Retirement Planning
Written by
Vance Cariaga
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Older Americans can expect some important tax changes in 2026, largely due to provisions in last year’s One Big Beautiful Bill Act (OBBBA). One of the biggest changes is a new tax deduction that specifically targets seniors.
Whether you’re a retired senior or still working, you’ll want to familiarize yourself with the changes and how they might affect your Social Security and retirement planning this year.
Here’s a closer look:
You’ll Get a Bigger Deduction…
The main thing to know about the new rules is that individual filers who are at least 65 years old can claim an additional $6,000 tax deduction on their returns in 2026. Married couples filing jointly can claim up to $12,000. This is on top of the standard deduction that already exists.
Here’s a breakdown for tax year 2025 (which you’ll file this year), according to a report from the Center for Retirement Research at Boston College (CRR).
| Filing status | Base standard deduction | Normal extra deduction for 65+ filers | New bonus deduction | Total deduction (65+) under the OBBBA |
| Single | $15,750 | $2,000 | $6,000 | $23,750 |
| Married, filing jointly | $31,500 | $3,200 (both 65+) | $12,000 (both 65+) | $46,700 (both 65+) |
For tax year 2026, to be filed in 2027, the standard deduction is $16,100 for single filers 65 and older and $32,000 for those who are married/filing jointly, according to the IRS.
…But the Deduction Won’t Last Forever
As previously reported by GOBankingRates, the new tax law began in 2025 and will continue through 2028. To take full advantage before the change ends, consider doing a Roth conversion.
“For the next [few] years, taxpayers over 65 can convert $12,000 in pre-tax individual retirement accounts (IRAs) into tax-free Roth IRAs at zero tax,” said Kelly Gilbert of EFG Financial. “If you converted just the $12,000 each year, that would create a $48,000 Roth IRA growing tax-free.”
Higher Earners Shouldn’t Plan on Deduction
Another important thing to remember about the deduction is that it doesn’t apply to all seniors. Your income will play a big role in whether it applies to you.
As the CRR noted, the deduction begins to phase out for single taxpayers with annual incomes over $75,000 and married filers with incomes over $150,000. The phaseout is $60 for each $1,000 over the threshold. It is fully phased out at $175,000 for single filers and $250,000 for joint filers.
Social Security Remains Taxable
One thing the OBBBA didn’t do was eliminate taxes on Social Security benefits, according to a blog from Define Financial, a San Diego-based fiduciary registered investment advisor (RIA) that specializes in retirement, tax and investment planning for people over 50.
Instead, the IRS will continue to use the same formula that has been in place for 40 years to determine how much of your Social Security income is taxable. Depending on your income, anywhere from 0% up to 85% of your Social Security benefits might still be taxable. Income thresholds haven’t been adjusted for inflation over the years, either.
You Should Get a Bigger Refund in 2026
Although the new tax provision doesn’t “explicitly” eliminate taxes on Social Security, it will still reduce taxes for many filers age 65 and older, according to the CRR.
If you’ve paid estimated taxes throughout the year, or had taxes withheld on your income, you “might end up getting a bigger refund” (or owe less) in 2026.
More From GoBankingRates
