A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.

Sponsor: John Kennedy (Republican-LA)July 22, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Read twice and referred to the Committee on Finance.

Adjusts Social Security tax rules for inflation, potentially lowering taxes for some retirees.

This bill would change how some Social Security money is taxed. Right now, the income limits for taxing Social Security do not rise with living costs. This bill would raise those limits for inflation starting in 2027, which could mean less of your Social Security money is taxed.

What Would Change

Today, the income levels that determine if your Social Security benefits are taxed stay the same year after year. This bill would change that, making sure these income levels are adjusted annually for inflation starting with the 2027 tax year. This means the amount of your Social Security benefits subject to tax would better reflect the true value of your income.

Key Provisions

Adjusts the income levels that determine if Social Security benefits are taxed to keep up with inflation.
Starts these inflation adjustments for the tax year beginning after 2026 (the 2027 tax year).
Rounds any inflation-adjusted income level up to the nearest $100.

View on Congress.gov

S 5084 · 119th Congress · July 22, 2026 · AI Summary by gemini-2.5-flash · 10/10

A bill to amend the Internal Revenue Code of 1986 to apply inflation adjustments to the base amount and adjusted base amount for purposes of determining taxable social security benefits.

What Would Change

Key Provisions

Lobbying Activity