Senate Proposes $6,000 Tax Deduction for Seniors in Revised GOP Tax Bill

The Senate has unveiled its version of the One Big Beautiful Bill Act, proposing a temporary $6,000 tax deduction for seniors aged 65 and older—an increase from the $4,000 deduction passed by the House.

The deduction, described by lawmakers as a “senior bonus,” is intended to offer targeted relief to middle-income retirees and replaces earlier GOP campaign proposals to eliminate taxes on Social Security benefits, a move deemed too costly under current budget rules.

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The proposed deduction would apply to individual taxpayers with modified adjusted gross incomes up to $75,000 and to married couples filing jointly with incomes up to $150,000. The benefit would phase out at a rate of 6% for incomes above these thresholds—faster than the 4% phase-out rate in the House version.

“For people who would be eligible for the full proposed senior deduction, the Senate’s $6,000 version is more generous,” said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center. However, he noted, the faster phase-out rate reduces the benefit more quickly as income rises.

Unlike the previous Social Security tax elimination proposal, which would have largely aided higher-income earners, the new deduction is designed to help middle-income seniors more directly. “It’s better because it helps the people who need the help more,” Gleckman added.

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To qualify, all taxpayers—and their spouses, if filing jointly—must have Social Security numbers. The deduction would be effective from tax years 2025 through 2028.

The House passed its version of the bill on May 22. A final version will require reconciliation between the two chambers before being sent to President Trump for approval.