President Donald Trump’s One Big, Beautiful Bill provides Americans with additional tax breaks for the 2025 tax year, set to last through 2028 and beyond.
According to a new study by SmartAsset, seniors can take advantage of the new $6,000 senior deduction. For many, that deduction translates to more than $1,300 in annual tax savings, but the exact benefit varies by state. This is in addition to savings from the standard deduction, itemized deduction and existing senior deduction. It also accounts for both married couples and single seniors.
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The seniors in these states will see the highest value, according to SmartAsset.
Utah
- Expected value: $1,396.92
Seniors in Utah could see the highest value from the new $6,000 deduction. The study estimates an expected value of nearly $1,400 per senior filer.
The study notes that about 12% of the state’s population is 65 or older, with a median senior income of just over $67,000. At that income level, many retirees fall into the IRS’s 22% tax bracket for 2025.
According to the IRS, the standard deduction will be $15,000 for single filers and $30,000 for married couples. When the new $6,000 senior deduction is added, the additional tax relief reduces the taxable income for both single seniors and married couples.
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Hawaii
- Expected value: $1,388.04
Seniors in Hawaii are expected to save a little over $1,388 from the new $6,000 deduction. And in a state where everyday expenses are higher than most of the country, that extra tax break can go a long way for retirees.
According to the Hawaii State Data Center, about 21.5% of the state’s population was age 65 or older in 2024, up from 19.3% in 2020. This increase is growing faster than the overall population, the state’s Research and Economic Analysis Division reported, which could make Hawaii one of the “oldest” states in terms of population share.
New Jersey
- Expected value: $1,387.08
Seniors in New Jersey are projected to save an average of about $1,387 under the new senior deduction. Roughly 18% of the state’s population is age 65 or older, with a median income of $67,177.
Not all retirees in New Jersey are financially secure, so the added tax savings will provide much-needed breathing room for covering basic essentials. According to America’s Health Rankings 2024 Senior Report, about 10% of adults age 65 and older live below the poverty line, up from 8.8% just a few years ago.
Connecticut
- Expected value: $1,386.60
In Connecticut, retirees could save about $1,386 on average. The median senior income is just over $66,000, which places many older residents — 19% of the state’s population — in the IRS’s 22% tax bracket for 2025. With housing and healthcare costs exceeding the national average, these tax breaks can help alleviate some of the financial strain many Connecticut seniors face in retirement.
California
- Expected value: $1,386.60
SmartAsset found that Californians are expected to receive the highest benefit from the Big, Beautiful Bill, at $2,293, and seniors are also expected to see an average savings of around $1,386. Roughly 16% of the state’s population is already 65 or older, with a median senior income of just over $68,000. By 2040, that share is expected to climb to nearly one in four residents, according to the Public Policy Institute of California.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 5 States Where Seniors Will See the Most Benefits from the Big, Beautiful Bill
