"The One Big Beautiful Bill Act introduced a new $6,000 senior tax deduction. Thanks to that tax break, the majority of Social Security recipients no longer have to pay federal taxes on their monthly benefits."
"However, there are still a number of states that impose their own taxes on Social Security benefits. It's important to know which states tax Social Security in the course of planning for your retirement."
"If you don't like the idea of having to pay state taxes on your Social Security benefits, you may be inclined to relocate before claiming them. But before you make plans to uproot your life, it's worth taking a pause."
The One Big Beautiful Bill Act introduces a $6,000 tax deduction for seniors, allowing many Social Security recipients to avoid federal taxes on their benefits. While this deduction is temporary and set to expire in 2028, some states still impose their own taxes on Social Security. Eight states continue to tax these benefits, but exemptions may apply for moderate and lower earners. Seniors considering relocation should evaluate their state's exemption limits and compare living costs before making decisions.
Read at 24/7 Wall St.
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