What the bill proposes and where it stands

The No Tax on Social Security Act is a bill introduced in Congress that would remove federal income tax from Social Security benefits. If passed, it would let people keep all of their Social Security payments without paying federal income tax on any portion of them.

As of now, the bill has been introduced but has not passed both chambers of Congress. Its status changes with each legislative session. You can check the current status by searching the bill number (H.R. or S. followed by a number, depending on which chamber introduced it) on Congress.gov, which tracks all federal legislation in real time.

The bill does not address state income tax. Some states tax Social Security benefits and some do not, regardless of what happens at the federal level. A change to federal tax law would not automatically change how your state treats your benefits.

Key Takeaways

  • The No Tax on Social Security Act would eliminate federal income tax on all Social Security benefits if it becomes law, but it has not passed Congress yet.
  • You can verify the bill's current status by searching Congress.gov with the bill number, which updates as votes and committee actions occur.
  • State income tax on Social Security is separate from federal tax and would not change unless your state passes its own law.
  • Social Security benefits are currently taxable at the federal level for people whose combined income exceeds certain thresholds, which this bill would change.

How Social Security is taxed now

Under current federal tax law, Social Security benefits may be taxable depending on your total income. The IRS uses a formula based on your combined income, which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.

If your combined income is below a certain threshold, none of your benefits are taxed. If it is above that threshold, up to 50 percent or up to 85 percent of your benefits may be subject to federal income tax. The exact percentage depends on how far your combined income exceeds the threshold. These thresholds have not changed since 1984 and do not adjust for inflation.

The thresholds are $25,000 for single filers and $32,000 for married couples filing jointly. These amounts explore to your 2024 tax year and remain the same for 2025. Married couples filing separately face a threshold of zero, meaning any combined income can trigger taxation of benefits.

What would change if the bill passes

If the No Tax on Social Security Act becomes law, you would report your Social Security benefits on your tax return but would not owe federal income tax on them. This differs from the current system, where the amount of tax you owe depends on your other income sources.

The change would affect people across all income levels. Someone with $50,000 in combined income and someone with $150,000 in combined income would both pay zero federal tax on their Social Security under this bill, whereas both currently may owe tax on a portion of their benefits.

The bill would not change how Social Security benefits are calculated, when you can claim them, or how much you receive each month. It affects only the tax treatment of benefits you already receive.

Who this would affect most

People with income from sources other than Social Security would see the largest change. This includes people who work part-time or full-time, receive pension income, have investment income, or are married and file jointly with a spouse who has earned income.

People whose only income is Social Security currently pay no federal tax on their benefits in most cases, because their combined income stays below the threshold. The bill would not change their tax situation, since they already owe no tax.

Married couples filing jointly are affected differently than single filers. A married couple with $40,000 in combined income currently may owe tax on part of their benefits, while a single person with the same income would not. The bill would remove this tax for both groups.

State tax considerations

Thirteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. The rules vary by state — some tax all benefits, others only for higher-income residents, and some offer partial exemptions.

A federal change would not automatically change state tax law. Each state would continue to follow its own rules unless it passes a separate law. If you live in one of these states and the federal bill passes, you would still owe state income tax on your benefits.

If you live in a state that does not tax Social Security, the bill would have no additional effect on your state taxes, though you would still benefit from the federal tax removal.

How to track the bill's progress

Congress.gov is the official source for tracking federal legislation. Search for "No Tax on Social Security Act" or search by bill number if you know it. The site shows you whether the bill is in committee, has been voted on, or has moved to another chamber.

You can also set up an email alert on Congress.gov to receive updates whenever the bill's status changes. This is useful if you want to know when ready when a vote is scheduled or when the bill moves to a new stage.

Your representative and senators' websites also track bills they have introduced or co-sponsored. If you know who introduced the bill, their office website may have additional information about their position and timeline.

What happens after a bill passes one chamber

If the bill passes the House of Representatives, it moves to the Senate. If it passes the Senate, it moves to the President for signature or veto. If the President signs it, it becomes law. If the President vetoes it, Congress can override the veto with a two-thirds majority in both chambers, though this is rare.

A bill can also die in committee, fail to pass a vote, or be amended significantly before passage. Congress.gov shows all of these steps as they happen, so you can see exactly where the bill is in the process.

Frequently Asked Questions

Would this bill affect Medicare premiums?

No. Medicare premiums are based on your modified adjusted gross income, which is calculated separately from the Social Security tax rules. Removing federal income tax on Social Security would not change how Medicare calculates your premiums or what you pay each month.

If the bill passes, do I need to do anything to my tax return?

You would still report your Social Security benefits on your tax return, but you would not owe federal income tax on them. Your tax software or tax preparer would handle this change automatically once the law takes effect. No action is required on your part beyond filing as usual.

Would this bill help people who already pay no tax on Social Security?

No. People whose combined income is below the current threshold already pay no federal tax on their benefits. The bill would not change their tax situation, since they owe no tax now and would owe no tax after the bill passes.

Can I claim a refund for taxes I already paid on Social Security?

That would depend on the bill's language if it passes. Some bills include retroactive provisions that allow refunds for prior years, while others explore only to future tax years. Congress.gov shows the full text of the bill, which would specify whether refunds are available.

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

You would still owe state income tax on your benefits under your state's current law. The federal bill would remove only federal income tax. Your state would need to pass its own law to remove state tax on Social Security.