Do Seniors Ever Stop Filing Taxes?

As tax season approaches, many seniors find themselves wondering if they will ever stop filing taxes. Some seniors may qualify for a tax exemption. Meanwhile, others may still need to submit a tax return to claim certain benefits or credits. Understanding the specific requirements and thresholds can help seniors determine their tax obligations. For example, Social Security benefits may or may not be taxable, depending on other income sources. Additionally, seniors who have income from investments, pensions, or part-time work may still need to file.

A financial advisor can help you prepare for retirement and create a personalized tax strategy that’s best for you. 

At What Age Can You Stop Filing Taxes?

Taxes aren’t determined by age, so you will never age out of paying taxes. People who are 65 or older at the end of 2025 have to file a return for that tax year (which is due in 2026) if their gross income is $16,550 or higher. ¹ If you’re married filing jointly and both 65 or older, that amount is $32,300. If you’re married filing jointly and only one of you is 65 or older, that amount is $30,750. For the 2026 tax year, seniors can also claim a new temporary bonus deduction created under the One Big Beautiful Bill Act (OBBA).

That said, there is one situation in which you can kiss taxes goodbye. If your only income is Social Security payments, you won’t owe taxes. And you probably won’t need to file a tax return. However, it’s a good idea to consult with a tax professional before knowing how your personal situation applies to anything related to tax liability.

Common Taxes Seniors Pay

If you’re 65 or older, you might also be retired or partially retired and taking distributions from your retirement savings. Retirement savings and investments can have more complex tax rules than other income, where the taxes deducted automatically from each paycheck are reflected in your W-2 at the end of each year. Here are some of the more common taxes retirees face and how they work.

1. Social Security Taxes

If you have significant retirement income other than Social Security, you might have to pay income tax on your Social Security benefits. The percentage of your Social Security benefits that are taxable depends on your combined income. Combined income is defined as your adjusted gross income plus nontaxable interest plus half of your Social Security benefits.

If you file taxes as an individual and your combined income is between $25,000 and $34,000, you may owe income taxes on up to 50% of your Social Security benefits ² . If your combined income is higher than $34,000, up to 85% of your benefits may be taxed.

If you file a joint return and you and your partner’s combined income is between $32,000 and $44,000, you may owe income taxes on up to 50% of your Social Security benefits. If that number is more than $44,000, up to 85% of your benefits may be taxed.

2. Common Retirement Accounts

IRAs, 401(k) plans and other popular retirement savings vehicles have different tax treatments. Generally speaking, some are pre-taxed and some are taxed at withdrawal. For example, IRAs that are funded by money that was already taxed – say you take $1,000 from a paycheck and put it in a Roth IRA – won’t be taxed when you withdraw that money in retirement as long as you follow the IRA withdrawal rules from the IRS.

On the other hand, traditional 401(k) plans are funded with pre-tax money, so withdrawals are generally taxed as income in the year you take them, and you can choose to have taxes withheld from those distributions.

3. Pension Taxes

Like 401(k) plans, pensions are usually funded by pre-tax money, so you’ll owe federal income taxes on withdrawals in the year you take them. If you take a lump-sum payment rather than annual or periodic payments, you will owe the total tax bill in the year you receive that payment. In many cases, your employer, through which you have the pension, will withhold taxes as your pension payments are disbursed, which can help mitigate the tax bill.

State Taxes in Retirement

Federal taxes often get the most attention, but state taxes can have just as much impact on your finances in retirement. Each state sets its own rules for taxing income, property and sales. These rules can make a big difference in how far your savings go.

Nine states have no income tax, which means retirement income from pensions, 401(k) withdrawals and IRAs is not taxed at the state level. However, those states may rely more heavily on sales taxes or property taxes to raise revenue. And this can still affect your overall cost of living.

Other states do collect income taxes but may offer special breaks for retirees. For example, a state may exempt all or part of Social Security benefits, pensions, or military retirement pay. In contrast, a handful of states tax Social Security benefits using their own thresholds. This can increase the tax burden for residents with a higher retirement income.

Property and estate taxes can also shape your retirement planning. Even if a state has low or no income tax, high property taxes could erode your budget. Estate or inheritance taxes, which are separate from federal estate tax, may also apply in certain states and can reduce the amount your heirs ultimately receive.

When reviewing the best states to retire in, it helps to look at the entire tax picture, not just income tax. Comparing how different states treat retirement income, property ownership, and sales taxes can give you a clearer view of your potential costs. Because tax laws change over time, checking the latest rules is an important step before making long-term plans.

Bonus Deduction and Updated Standard Deduction for 2026

For the 2026 tax year, older taxpayers gain access to a temporary deduction created under the One Big Beautiful Bill Act. ³ This new provision allows qualifying individuals to subtract up to $6,000 from their taxable income. Couples who file jointly can claim as much as $12,000 if both people meet the age requirement. Eligibility for the full amount decreases once modified adjusted gross income rises above $75,000 for single filers and $150,000 for joint filers, and the deduction phases out entirely at $175,000 and $250,000.

Alongside this new benefit, seniors will still receive an extra standard deduction that adjusts annually for inflation. In 2026, that additional amount is $2,050 for single filers and heads of household. It increases to $4,100 for anyone who is age 65 or older and also blind. For married couples, the extra amount is $1,650 for each qualifying spouse, or $3,300 if a spouse is both 65 or older and blind.

These deductions work together with the regular standard deduction for 2026, creating a higher total deduction for older taxpayers. A single filer who is 65 or older can reduce taxable income by as much as $24,150 when eligible for both senior-related deductions. A married couple in which both spouses qualify can reduce their taxable income by up to $47,500.

How to Minimize Taxes as a Senior

Seniors often have different income sources, such as Social Security benefits, pensions and retirement account withdrawals. All of which can affect their tax liabilities. Knowing which tax bracket you fall into helps you make informed decisions about when and how much to withdraw from your retirement accounts. This knowledge can also guide you in timing your income to potentially lower your tax rate,. And help you keep more of your hard-earned money. Here are a few ways to save on your taxes:

• Take advantage of the tax credit for the elderly. The Credit for the Elderly and Disabled is worth between $3,750 and $7,500, and the IRS has an online tool to check eligibility. You generally must be 65 or older and meet income limits, which include both adjusted gross income and a portion of nontaxable income. For single filers and heads of household, the limits are $17,500 in AGI plus up to $5,000 of nontaxable income; for married couples filing jointly, the limits are $20,000 if one spouse is 65 or older and $25,000 if both spouses are 65 or older, plus up to $7,500 of nontaxable income.
• Use your bigger standard deduction. If you’re 65 or older and you don’t itemize deductions, you are entitled to a higher standard deduction. A single filer over 65 gets an extra $2,000 deduction. Meanwhile, a couple filing jointly gets an extra $1,600 for each partner who is 65 or older. So if only one spouse is 65 or older, the extra deduction amount is $1,600. But if both are 65 or older, it’s $3,200. For 2026, seniors also qualify for an additional $2,050 standard deduction per eligible individual ($4,100 if age 65+ and blind), or $1,650 per qualifying spouse ($3,300 if age 65+ and blind), based on annual inflation adjustments.
• New bonus deduction for 2025 through 2028. Beginning in 2025, seniors can also claim a temporary bonus deduction of up to $6,000 per person. Or up to $12,000 for a married couple filing jointly if both spouses qualify. This deduction is available whether you take the standard deduction or itemize. It begins phasing out when modified adjusted gross income exceeds $75,000 for single filers or $150,000 for joint filers and phases out completely at $175,000 and $250,000, respectively.
• People 50 or older can make “catch-up” contributions to their retirement accounts. The 2025 contribution limit for a traditional or Roth IRA is $7,000, and the 2026 IRA limit increases to $7,500. But if you’re 50 or older, you can contribute an extra $1,000 in 2025 and $1,100 in 2026. The 2025 contribution limit for a 401(k) plan is $23,500, and the 2026 401(k) limit increases to $24,500. Those 50 and older can contribute an extra $7,500 in 2025 and $8,000 in 2026. However, in 2025, people between the ages of 60 and 63 can make a super catch-up contribution of $11,250. And this higher $11,250 limit also applies for 2026.

Bottom Line

Unless you have no income outside of Social Security payments, you’ll probably have to keep paying taxes in your elder years. The good news is that there are tax credits and other strategies you can use to help you keep that tax bill low. You may want to work with a financial advisor to make sure you have a clear tax strategy during retirement. 

Tips for Saving on Taxes in Retirement

• A financial advisor can help you build a retirement income plan with tax efficiency in mind. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. You can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• Use SmartAsset’s retirement calculator to make sure your retirement savings will carry you through – or learn how you need to adjust your saving strategy to make your plan work.
• Taxes aren’t the only surprise expense in retirement – be sure to account for your Medicare costs as you plan out your retirement income too. Check out SmartAsset’s guide to Medicare Part A, Part B, Part C and Part D.

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