Taxes on Retirement Income Calculator

Estimate the taxes you will pay on your retirement income, including income from Social Security, pensions, and withdrawals from retirement accounts like IRAs and 401(k)s. This calculator helps you understand your tax liability in retirement.

Annual Social Security Income ($):

Annual Pension Income ($):

Annual Retirement Account Withdrawals ($):

Other Annual Income ($):

Filing Status:

Understanding Taxes on Retirement Income

In retirement, the amount of taxes you pay on your income depends on your total income from various sources, including Social Security, pensions, withdrawals from retirement accounts, and other investments. Some of this income may be taxable, and your total tax liability will depend on your filing status and income level.

How Taxes on Social Security Work

Up to 85% of your Social Security benefits can be taxable, depending on your overall income. If your income exceeds certain thresholds, a portion of your Social Security benefits will be included in your taxable income. The formula to determine how much of your benefits are taxable is based on your "combined income," which includes your adjusted gross income, nontaxable interest, and half of your Social Security benefits.

How Taxes on Pension Income Work

Most pension income is taxable at ordinary income tax rates, unless you made after-tax contributions to the pension. The tax rate will depend on your total income and your tax filing status.

How Taxes on Retirement Account Withdrawals Work

Withdrawals from traditional IRAs, 401(k)s, and other retirement accounts are generally taxed as ordinary income. If you contributed to these accounts on a pre-tax basis, you will pay income taxes when you withdraw the funds. The amount of tax depends on your total withdrawals and other income in retirement.

Other Income in Retirement

Other types of retirement income, such as rental income, investment income, or dividends, may also be subject to taxes. The tax rates vary depending on the type of income (e.g., capital gains tax for investments).

Tax Rates for Different Filing Statuses

The tax rates you pay in retirement depend on your filing status and total income. Common filing statuses include:

Single: For individuals who are not married and do not qualify for head of household status.
Married: For individuals who are married and file jointly.
Head of Household: For individuals who are unmarried but maintain a home for a qualifying person, such as a dependent child.