If you’re 65 or older, there are some major breaks you don’t want to miss. Whether you itemize or take the standard deduction, these new and existing perks could make a serious difference in your refund (or how much you owe). Here’s what you need to know to take full advantage of the latest senior tax benefits.
Read more:
- Here are 10 mistakes that could ruin your retirement.
- Check out these 20 perks for seniors you may be missing.
- See the states that don't tax retirement income.
Higher Standard Deduction
Those 65 and older can take an additional deduction of $1,600 per qualifying individual. This applies to those filing “married filing jointly” or “surviving spouse.” If both spouses are over 65, each one can take the additional deduction, for a total of $3,200 extra.
For those filing single or head of household, you can add an additional $2,000 to the standard deduction.
Here are the 2025 federal tax brackets and standard deduction amounts.
Bonus Deduction for Lower Income Folks
For tax years 2025 through 2028, if your household income is less than $75,000, each spouse who is 65 or older can add $6,000 to the standard deduction. This means if both spouses are over 65, you can take an additional deduction of $12,000, making your total standard deduction $43,500.
You also don't need to claim the standard deduction to take advantage of this perk. You can still deduct up to $12,000 per qualifying couple, even if you itemize.
Here's how to get a bigger tax refund.
Low Income Tax Credit
If you are 65 or older and your adjusted gross income is low enough, you can get a non-refundable tax credit of up to $7,500. The income limits are as follows:
- Single – $17,500
- Married filing jointly with one qualifying spouse – $20,000
- Married filing jointly with two qualifying spouses – $25,000
- Married filing separately – $12,500
Qualifications also depend on your non-taxable income, such as Social Security, disability income, pensions, and annuities. Those limits are as follows:
- Single – $5,000
- Married filing jointly with one qualifying spouse – $5,000
- Married filing jointly with two qualifying spouses – $7,500
- Married filing separately – $3,750
Learn the difference between a tax credit and a tax deduction.
Property Tax Credits on State Returns
Some states offer a property tax credit to seniors. This means that you can deduct up to the full amount, depending on your state rules, from your state taxes. States that offer tax credits are:
- Connecticut
- Delaware
- Idaho
- Kansas
- Maine
- Massachusetts
- Michigan
- Missouri
- Montana
- New Jersey
- New Mexico
- North Dakota
- Pennsylvania
- South Dakota
- Tennessee
- Utah
- West Virginia
- Wisconsin
Even if your state is not on this list, it may still offer tax relief in a different form. Some states offer tax freezes or tax deferrals to seniors.
If you think you're paying too much for property taxes, check out this review of Ownwell. A company that negotiates your property taxes on your behalf.
Car Loan Interest Deduction
For tax years 2025 through 2028, you may be able to claim a deduction of up to $10,000 for the interest you paid on your car loan. You don't have to be over 65 to qualify, but you do need income under $100,000.
To qualify, the car loan must have originated on or after January 1st, 2025, and the vehicle must be new and weigh less than 14,000 pounds. Used cars don't qualify. The car must also have final assembly in the U.S.
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