What the House actually voted on

In 2024, the House of Representatives passed H.R. 7666, the "No Taxes on Social Security Act," on September 18 by a vote of 330–101. The bill would prevent the federal government from taxing Social Security benefits for any recipient, regardless of their income level.

This is different from current law. Right now, if your combined income (adjusted gross income plus half your Social Security benefits) exceeds certain thresholds—$25,000 for single filers or $32,000 for married couples filing jointly—the federal government taxes up to 85 percent of your benefits. The bill would eliminate that tax entirely.

However, passing the House is not the same as becoming law. The bill still needed to move through the Senate and receive the President's signature. As of early 2025, the Senate has not voted on it, so it has not become law.

Key Takeaways

  • The House passed H.R. 7666 in September 2024, which would stop all federal taxation of Social Security benefits.
  • Current law taxes Social Security benefits for people whose combined income exceeds $25,000 (single) or $32,000 (married filing jointly).
  • A bill passing the House does not make it law—it must also pass the Senate and be signed by the President.
  • The Senate has not yet voted on this bill, so Social Security taxation rules remain unchanged for now.

How Social Security is taxed under current law

The taxation of Social Security benefits has been part of federal tax law since 1983. The IRS uses a formula based on your "combined income," which includes your adjusted gross income, tax-exempt interest, and half of your Social Security benefits.

If you are single and your combined income is between $25,000 and $34,000, you may owe federal income tax on up to 50 percent of your benefits. If it exceeds $34,000, you may owe tax on up to 85 percent of your benefits. For married couples filing jointly, the thresholds are $32,000 and $44,000.

These income thresholds have not changed since 1983, even though inflation has risen significantly. This means more retirees fall into the taxable range each year, even if their actual purchasing power has not increased.

What H.R. 7666 would change

If the bill becomes law, no portion of your Social Security benefits would be subject to federal income tax, no matter how much other income you have. This would affect roughly 11 million Social Security recipients who currently pay federal tax on their benefits.

The bill would not affect state income taxes on Social Security. Thirteen states currently tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia. Those state taxes would continue under the bill.

The bill also would not change how Social Security benefits are calculated or how much you receive each month. It only changes whether the federal government taxes the money you already receive.

Why the House passed it and why it matters

Supporters of the bill argue that Social Security recipients already paid taxes on the income they earned while working, and that taxing benefits amounts to double taxation. They also point out that the income thresholds have not been adjusted for inflation in over 40 years, pulling more middle-income retirees into the tax system.

Opponents argue that removing the tax would reduce federal revenue and primarily benefit higher-income retirees who have other sources of income. The Congressional Budget Office has not published a formal cost estimate for this specific bill, so the exact revenue impact is unclear.

The bill passed with bipartisan support, meaning both Republicans and Democrats voted for it. However, Senate passage is not may provide, and the bill's fate depends on whether the Senate brings it to a vote.

What happens next in Congress

After passing the House, H.R. 7666 was sent to the Senate. The Senate can vote on the bill, amend it, or let it sit without action. If the Senate passes a different version, the two chambers would need to reconcile their versions before sending it to the President.

Senate action on tax bills can move slowly, especially when they involve revenue questions. The Senate may prioritize other legislation or may not bring this bill to a vote in the current session.

If the Senate does pass the bill and the President signs it, the change would typically take effect in the tax year following the law's enactment. The IRS would issue updated guidance on how to report Social Security income on tax returns.

How to learn about this bill becomes law

You can track the status of H.R. 7666 on Congress.gov, which shows the bill's current location in the legislative process, all votes, and any amendments. The site updates in real time as bills move through Congress.

Your elected representatives' websites also often have information about bills they have voted on or are tracking. If you want to contact your Senator about this bill, their office can tell you their position and whether they plan to vote on it.

For now, if you are currently paying federal tax on your Social Security benefits, you should continue to do so. The current tax rules remain in effect until and unless Congress passes a new law and the President signs it.

Frequently Asked Questions

If this bill passes, when would it take effect?

Tax bills typically take effect in the tax year following enactment, though Congress can specify a different date. If signed into law in 2025, it would likely explore to 2025 or 2026 tax returns. The IRS would issue guidance once the bill becomes law.

Would this bill affect my state income taxes on Social Security?

No. H.R. 7666 only addresses federal income tax. If you live in one of the 13 states that tax Social Security benefits, you would still owe state tax on your benefits even if this bill passes.

How much money would this save me if it becomes law?

That depends on your combined income, filing status, and tax bracket. The IRS worksheet on Form 1040 instructions shows how much of your benefits are currently taxable. If the bill passes, that amount would drop to zero for federal purposes.

Does passing the House mean this will definitely become law?

No. Many bills pass one chamber and do not pass the other. The Senate must vote on this bill, and it must receive the President's signature to become law. As of now, the Senate has not voted on it.

Can I stop paying taxes on my Social Security benefits right now?

No. Current law requires you to pay federal income tax on your benefits if your combined income exceeds the thresholds. You must follow the current rules until Congress changes the law and it takes effect.