After Congress passed the One Big Beautiful Bill Act, signed into law by President Donald Trump on July 4, the Social Security Administration sent out a statement saying that it “eliminates federal income taxes on Social Security benefits for most beneficiaries.”

Trump has often promised “no tax on Social Security.”

But while the law does provide tax relief for seniors, it did not eliminate taxes on Social Security benefits for seniors.

Instead, it introduced a temporary tax deduction of $6,000 for those taxpayers age 65 and older. The deduction, effective 2025 to 2028, effectively reduces taxable income for taxpayers over 65.

The deduction applies to all income, not just Social Security benefits, and is available to those with a modified adjusted gross income up to $75,000 for single filers or $150,000 for married couples filing jointly. The tax break phases out completely at $175,000 for single filers and $250,000 for married filing jointly.

The White House Council of Economic Advisers calculated that the deduction would mean 88 percent of seniors, about 51.4 million people, will not pay taxes on their Social Security benefits, up from 64 percent under previous law, as their income exceeds taxable Social Security income.

About 7 million higher-income seniors will stay pay taxes on their benefits.

The claim that the Big Beautiful Bill eliminates taxes for most Social Security beneficiaries is potentially misleading. It’s the effect of a deduction, not the direct repeal of taxes on Social Security benefits.

The deduction doesn’t benefit lower-income seniors who already pay no taxes, those under 65 receiving disability or survivor benefits, or high earners above the thresholds of the deduction.