![\"Several](\"https:\/\/www.europesays.com\/us\/wp-content\/uploads\/2025\/09\/iStock-1479769978-2.jpg\")
<\/p>\n <\/p>\n
\n eric1513 \/ Getty Images <\/p>\n
Commitment to Our Readers<\/p>\n
GOBankingRates’ editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services – our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines<\/a> and our products and services review methodology<\/a>.<\/p>\n 20 Years<\/strong> Trusted by<\/strong> A few new Social Security<\/a> rules have been introduced in 2025. If you\u2019re one of the nearly 69 million<\/a> Americans that receive these benefits, keeping tabs on the latest happenings is essential.<\/p>\n This will ensure you understand what\u2019s behind any changes to your benefits this year \u2014 i.e., increases \u2014 and know how to properly file your taxes. Keep reading to learn about four Social Security changes that have been implemented in 2025<\/a>.<\/p>\n Implementation of the Social Security Fairness Act<\/p>\n A major win for millions of Americans, the Social Security Fairness Act<\/a> became a law on Jan. 5, 2025. The Act abolished the Windfall Elimination Provision and the Government Pension Offset, which lowered or eliminated Social Security benefits for those who receive a pension from work not covered by Social Security \u2014 i.e., they didn\u2019t pay Social Security taxes<\/a>.<\/p>\n<\/p>\n Some of the professions that may receive a benefit hike due to the Act include teachers, firefighters and police officers \u2014 in a variety of states \u2014 federal employees covered by the Civil Service Retirement System and those whose work fell under a foreign Social Security system.<\/p>\n The amount this will increase an eligible person\u2019s benefit varies, according to the Social Security Administration (SSA). Some people may receive more than $1,000 extra per month, while others only realize a slight increase.<\/p>\n Maximum Taxable Earnings Increase<\/p>\n In 2025, the Social Security maximum taxable earnings<\/a> increased to $176,100. This marks a 4% increase from the 2024 limit of $168,600.<\/p>\n Cost of Living Adjustment<\/p>\n Social Security recipients received a 2.5% cost of living adjustment<\/a> (COLA) in 2025. This increase appeared in payments starting in January 2025.<\/p>\n That same month, the average monthly Social Security retirement benefit was $1,976, according to the SSA<\/a>. Do note, this average changes on a monthly basis.<\/p>\n Social Security benefits comprise approximately 31% of the income of the over 65 population, per the SSA<\/a>. Therefore, a COLA is important<\/a>, to help this group keep up with inflation.<\/p>\n<\/p>\n No Federal Income Tax on Benefits for Most Recipients<\/p>\n As part of President Trump\u2019s \u201cOne Big Beautiful Bill<\/a>,\u201d 90% of Social Security recipients are now exempt from paying taxes on their benefits. This allows them to keep more of their hard-earned money<\/a>, instead of having to hand it over to Uncle Sam.<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-20.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Helping You Live Richer<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon-experts-review.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n![\"\"](\"https:\/\/cdn.gobankingrates.com\/wp-content\/uploads\/2023\/11\/icon__trusted.svg?webp=1&quality=75\"){kind=icon}
<\/p>\n
Millions of Readers<\/p>\n