Tax Chic Resolutions LLC

06/13/2026

06/13/2026

The idea that people don't have to pay taxes after age 65 is a very common myth, and it likely comes from a few historical and legal facts that have been misunderstood over time:

1. Social Security was originally tax-free

When Social Security Administration benefits began, they were not subject to federal income tax.

In 1983, Congress changed the law so that some Social Security benefits became taxable for higher-income recipients. Before then, many retirees truly had little or no taxable income.

2. Many retirees had income below filing thresholds

Historically, a large percentage of people over 65 lived primarily on Social Security and modest pensions.

Tax law has long provided a higher standard deduction or additional deductions for seniors, meaning many older adults legitimately did not owe tax or need to file.

People often translated "I don't have to file" into "people over 65 don't pay taxes."

3. The old "65 exemption" rules

Prior tax laws included additional personal exemptions and filing thresholds for taxpayers age 65 or older.

Over time, these rules changed, but the belief remained.

4. Property tax relief programs

Many states and local governments created property tax freezes, homestead exemptions, or tax relief programs for seniors.

Some people mistakenly generalized these benefits into a belief that all taxes disappear at age 65.

5. Retirement and pensions

Certain states exempt some pension, military retirement, or government retirement income from state taxation.

This often gets repeated as "retirees don't pay taxes," which is not the same thing.

The reality today

Turning 65 does not automatically exempt someone from:

Federal income tax

State income tax (where applicable)

Property tax

Capital gains tax

Self-employment tax (if still working)

Taxes on retirement account withdrawals

A 70-year-old with a large pension, IRA distributions, investment income, or business income can owe substantial taxes. Conversely, a 70-year-old whose only income is Social Security may owe little or nothing.

06/10/2026

06/08/2026

06/08/2026

Taxpayers with deferred capital gains in Qualified Opportunity Funds should prepare now for the potential tax liability due in 2026 and explore available tax-saving strategies.

06/08/2026

06/02/2026

Learn how Health Savings Accounts and High-Deductible Health Plans can lower taxes, reduce healthcare costs, and help build long-term savings.

Learn how Health Savings Accounts and High-Deductible Health Plans can lower taxes, reduce healthcare costs, and help build long-term savings

06/02/2026