Here Is What No Tax on Social Security Really Means

The 2026 State of the Union address was delivered by Donald Trump on Feb. 24, but some of his claims during his speech have folks wondering if what he claimed about no taxes on Social Security is actually true. Trump's aversion to the truth is well-known by now to most, and his statements at the SOTU address were fact-checked. Not surprisingly, Trump told some tall tales during his speech, especially about his plans for Social Security.

"Under this administration, we will always protect Social Security and Medicare," Trump claimed, per Fortune. "We will always protect Social Security, Medicare, and Medicaid."

However, Trump has actually "drastically shortened" the financial life spans of Social Security, as well as Medicaid, despite his false claims. So, what about his no tax on Social Security claim? Is it true? Not really.

Trump claimed that his One Big, Beautiful Bill Act of 2025 eliminated taxes on Social Security during his speech. "With the great ‘big, beautiful bill,’ we gave you no tax on tips, no tax on overtime, and no tax on Social Security,” he claimed.

However, the no tax on Social Security only pertains to some people. The bill only allows for a temporary $6,000 annual tax deduction for individuals who are 65 and up and make $75,000 or less per year. The deduction for married couples is $12,000.

Millions of Social Security recipients who are 65 and older will still have to pay taxes on their benefits, and the new deduction expires in 2028. The deduction also doesn't pertain to folks under 65 collecting Social Security.

Trump also slashed more than $900 billion in Medicaid funding, per CNN, and the Congressional Budget Office says the cuts will raise the number of uninsured Americans by 7.5 million in 2034. The temporary tax reduction on Social Security benefits is also depleting the reserves more quickly.

The Congressional Budget Office reports that the Hospital Insurance (HI) Trust Fund that funds Medicare Part A will now run out by 2040 instead of 2052 due to Trump's One Big, Beautiful Bill.

According to Financial Buzz, the Social Security benefits for single filers making under $25,000 in benefits are not taxed. Those making between $25,000 and $34,000 may have their benefits taxed up to 50 percent. Those making more than $34,000 can be taxed up to 85 percent.

For married couples filing jointly, those making under $32,000 in benefits are not taxed, but those earning between $32,000 and $44,000 can be taxed up to 50 percent, and those earning more than $44,000 can have up to 85 percent of their Social Security taxed.

The lead U.S. economist at Oxford Economics, Bernard Yaros, says that the Trump Administration's funding of Social Security and Medicare with general revenue could increase interest rates in the bond market, and that could force legislators to make big cuts to nondiscretionary programs, leading to a full-blown fiscal crisis.