Have any recent laws changed the percentage of Social Security benefits subject to tax for 2026?
Executive summary
No recent law changed the statutory formulas that determine what percentage (0%, 50% or 85%) of Social Security benefits can be included in federal taxable income for 2026 returns; instead, 2025–2026 legislation created a new senior deduction and state-level moves that can reduce the amount of beneficiaries’ income that is taxable without altering the underlying federal thresholds set decades ago [1] [2] [3]. The practical outcome for many retirees is lower federal tax bills on Social Security in 2026, but that is achieved through deductions and state exemptions, not by changing the percentage rules that govern how much of benefits may be taxed [4] [5].
1. What the question really asks — percentage vs. taxable amount
The phrasing “percentage of Social Security benefits subject to tax” can mean two different things: the statutory maximum percentages used in federal law (0%, 50%, 85% of benefits counted toward “combined income”) or the effective share of a recipient’s benefit that becomes taxable on their federal return after applying income, deductions and credits. Reporting to date shows no change to the statutory calculation that produces those 0/50/85 thresholds for 2026; instead, lawmakers enacted other measures that reduce taxable income for some seniors, which affects how much of benefits are taxable in practice [1] [2].
2. Laws and rules that did change in 2026 — deductions, COLA and wage base, not the percentage formula
Congress and the IRS produced meaningful changes that affect seniors’ tax bills in 2026, including a new federal tax deduction aimed at taxpayers 65 and older that can reduce or eliminate federal taxes on Social Security benefits for many retirees, plus routine Social Security adjustments such as the 2.8% COLA and an increase in the Social Security wage base to $184,500 for 2026 [6] [7] [8] [3]. These are real, documented policy shifts that alter beneficiaries’ net income or how much of their other income is counted, but none of those actions rewrite the 50%/85% statutory ceilings embedded in the federal combined-income test [6] [7].
3. How the new senior deduction changes the practical tax outcome
The One Big Beautiful Bill Act (and related tax code changes implemented for 2025–26) introduced an enhanced federal deduction for taxpayers age 65 and older — commonly described in reporting as up to a $6,000 “senior” deduction — that lowers taxable income and therefore reduces the likelihood that Social Security benefits will be pushed above the threshold where 50% or 85% becomes taxable [4] [2] [3]. Several outlets explain that this deduction can make Social Security effectively tax-free for many seniors in 2026 even though the statutory percentages remain intact; that distinction — deduction versus percentage rule — is central and consistent across reporting [4] [2].
4. State-level rollbacks also change how much of benefits are taxed locally
Separately, some states are changing their treatment of Social Security income: for example, West Virginia completed a phase-out such that Social Security benefits are fully exempt from West Virginia income tax for tax year 2026 (returns filed in 2027) according to multiple reports [5]. State exemptions reduce the overall share of benefits that are taxed by state governments, but this is a state policy change rather than an alteration of the federal 0/50/85 calculation [5].
5. Pending proposals and what would be required to alter the statutory percentages
There are bills and proposals on the table that, if enacted, would more directly change federal taxation of Social Security (for instance proposals to eliminate federal taxation of benefits entirely), but as of reporting those measures were not law and thus had not changed the statutory percentage rules for 2026 returns [1]. Analysts and advisory firms caution that while deductions and other adjustments in 2026 will reduce many seniors’ taxable benefits, wholesale repeal of the percentage rules would require specific, separate congressional action that had not occurred by the time these sources were published [1] [9].
6. Bottom line — practical relief, not a rewrite of the tax formula
The concrete answer: no recent law changed the federal statutory percentages (0/50/85) used to determine how much of Social Security benefits may be taxable for 2026; instead, newly enacted deductions and state-level exemptions will lower the effective taxable amount for many beneficiaries in 2026, producing the practical effect of reduced taxation without rewriting the underlying percentage rules [4] [2] [5]. Reporting is consistent that beneficiaries should watch the new senior deduction, routine COLA and wage-base adjustments, and state tax changes — and consult tax guidance — because those factors will determine how much of an individual’s benefits are taxed in practice even though the federal percentage formula remains unchanged [6] [7] [3].