President Donald Trump has said that under his second term he would look to eliminate taxes on Social Security income for seniors, which at first glance sounds like a good thing for folks who

Social Security payments have been helping seniors supplement their retirement income since the Social Security Administration was created in 1935. With the decline of employer pension plans, workers have become increasingly responsible for building their own retirement savings nest eggs.

Social Security beneficiaries may face taxes if they have additional income sources or due to the COLA increase. Here's how to determine if you're affected.

You can avoid paying taxes on your retirement account withdrawals if you have enough deductions to offset the amount you take from your accounts. In 2025, the standard deduction for a couple age 65 or older is $33,200.

On the state level, though, the rules are different. A total of 41 states don't tax benefits, but nine do. If you live in one of them, you may need to make some plans to avoid owing money to the government. Here are the nine states that tax Social Security benefits in 2025:

In 2025, nine states will impose taxes on Social Security benefits, understanding the specific rules and income thresholds in these states is crucial for reduce.

The big problem with Trump's proposal to eliminate Social Security's income taxes on benefits is that those taxes are one of just three critical funding sources for the program. The other two are the payroll taxes that workers pay and the interest income on the program's trust funds.

Social Security benefits are a vital source of income for many retirees in the United States. However, depending on where you live and your income level, you may have to pay taxes on these benefits. In 2025,