Florida’s retirees—among the largest senior populations in the U.S.—are expected to see major financial gains starting in 2026 thanks to the One Big Beautiful Bill.
Passed under the Trump administration, the legislation introduces a senior deduction that exempts most Social Security benefits from federal income tax.
In a state where housing affordability and home insurance rates have become pressing issues for older homeowners, this change could offer significant relief.
A national tax shift for retirees
The big beautiful bill passed by Congress raises the share of seniors who owe no federal income tax on Social Security from 64% to 88%, according to the White House. That’s an increase of 14.2 million retirees gaining tax exemption.
Central to the law is a $6,000 senior tax deduction for individuals and $12,000 for married couples, stacked on top of existing deductions.
“This amounts to the largest tax break in history for America’s seniors,” the administration declared in its official summary.
A closer look at Florida’s senior population
Florida has the second largest senior population in the country, second only to California. As of 2023, approximately 4.9 million Floridians are aged 65 or older—making up 21.75% of the state’s population and more than 8% of the entire U.S. senior demographic, according to the most recent census data.
According to the White House, 4.8 million of those seniors are expected to benefit from the new tax-free status of Social Security income.
Florida residents, which include seniors still working, are also projected to see real-wage increases ranging from $4,400 to $7,800, and real take-home pay gains between $8,300 and $11,800, senior or otherwise.
The state is scheduled to gain 18,800 new Opportunity Zone housing units, designed to support underserved areas and seniors with limited mobility.
Who benefits—and who misses out
If the White House’s numbers are correct, while nearly 98% of the seniors in the state will benefit from these change, there are still some that do not qualify. The senior deduction phases out at $75,000 for individuals and $150,000 for married couples. It disappears entirely at $175,000 and $250,000. Because the deduction is not refundable, low-income seniors who already owe no federal income tax will not see additional savings.
That positions middle-income retirees as the primary beneficiaries. For these homeowners, the senior deduction could help cover these growing expenses, especially when combined with the bill’s quadrupling of the SALT deduction cap—from $10,000 to $40,000.
In a state where property taxes are moderate but homeowners insurance rates have surged, the ability to reduce taxable income could help more Floridians age in place. Tools like a property tax calculator can help estimate how these changes affect overall household budgets, while the retirement planning guide outlines financial considerations for seniors managing long-term housing costs.
What comes next?
The senior deduction is only guaranteed through the 2028 tax year. Unless Congress renews the provision, the tax break could expire—potentially reinstating the federal tax burden on Social Security income for millions, including 4.8 million in Florida.
Until then, the new tax benefits under the One Big Beautiful Bill provide significant breathing room for Florida’s older adults—especially those hoping to remain in their homes while navigating the realities of fixed income and rising costs.
This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.