A viral headline claims that former President Donald Trump just signed a new law ending Social Security taxes for millions of Americans. While the story has captured attention, the truth is more nuanced. Social Security remains a tax-funded program, and no law has eliminated payroll contributions. However, there are ongoing proposals about changes to how benefits are taxed in retirement.
What the Headline Refers To
The rumor stems from recent discussions about ending federal income tax on Social Security benefits. Currently, retirees with certain income levels may pay federal tax on up to 85% of their benefits. Proposals supported by Trump and other lawmakers aim to eliminate this tax burden, letting seniors keep more of their monthly checks. Importantly, this is about the taxation of benefits, not payroll contributions that fund the system.
Social Security Payroll Taxes Still Apply
All workers and employers continue to contribute to Social Security through payroll taxes (FICA):
- 6.2% of wages paid by employees
- 6.2% matched by employers
- Self-employed workers pay the full 12.4%
These contributions remain the foundation of the program and have not been repealed. Workers will still pay Social Security taxes in 2025 and beyond.
Potential Relief for Retirees
If legislation to end federal income tax on Social Security benefits passes, retirees could see higher net payments. For example, seniors who currently lose hundreds or thousands of dollars annually to benefit taxation would keep that money. This change is particularly meaningful as living costs rise faster than annual Cost-of-Living Adjustments (COLA).
What This Means Going Forward
No law eliminating payroll taxes has been signed. Instead, current proposals focus on ending the taxation of Social Security benefits for retirees. The measure is still under debate and has not yet become permanent law. Seniors should stay tuned for updates, as Congress will ultimately decide whether the change becomes reality.
Conclusion: The claim that Trump “just signed” a law ending Social Security taxes is misleading. Workers will still pay payroll contributions, but retirees may see relief if proposals to end benefit taxation are approved. For now, Social Security remains tax-funded, and beneficiaries should follow official updates to see how future laws might impact their checks.
Disclaimer: This article explains the status of Social Security tax proposals as of September 2025. No law has eliminated payroll taxes, though changes to the taxation of benefits are under discussion. For accurate updates, consult the Social Security Administration (SSA) or IRS guidance.
Read More:
- Trump Tariffs Ruled Illegal: Will You Get a Refund?
- Big Update! $4,196 VA Disability Payment Approved for 2025 – Check If You Qualify
- USA Senior Driving License Changes Effective September 2025 – Key Details Explained
- SSI Payment For September Comes Early – No Deposit This Month
- Selected Families Could Receive Up to $298 Per Child – See Your Upcoming Payment Date
