Retirement income tax calculator
In retirement, tax comes from three places at once: withdrawals from traditional 401(k)s and IRAs (ordinary income), Social Security (up to 85% taxable, depending on the other income), and required minimum distributions, which force withdrawals whether they are needed or not. Then the state adds its own tax. Coastline's engine computes all of it the way a return does; the tables below are that engine for 2026, with the 65+ standard deduction and the senior deduction applied.
Federal tax on four retired households, 2026
| Household | Taxable SS | AGI | Deductions | Federal tax | Share of income |
|---|---|---|---|---|---|
| Single, 67 · $30,000 SS · $40,000 IRA | $22,350 | $62,350 | $24,150 | $4,336 | 6.2% |
| Couple, 67 · $50,000 SS · $60,000 IRA | $40,850 | $100,850 | $47,500 | $5,906 | 5.4% |
| Couple, 70 · $60,000 SS · $150,000 IRA | $51,000 | $201,000 | $41,380 | $24,540 | 11.7% |
| Couple, 75 · $60,000 SS · RMD on $1.5M | $45,929 | $106,905 | $47,500 | $6,633 | 5.5% |
Deductions are the standard deduction, the extra deduction for each spouse 65 or older, and the senior deduction (reduced above $150,000 of MAGI on a joint return). How much of the benefit is taxable is worked out first, from provisional income; the Social Security tax calculator shows that step on its own.
Required minimum distributions
At 75, the required withdrawal from $1,500,000 of traditional accounts is $60,976 (the balance divided by the IRS life-expectancy factor of 24.6). With $60,000 of Social Security, $45,929 of the benefit becomes taxable and the couple's federal tax is $6,633, whether or not they spend the money. Roth conversions in the years before RMDs begin are the usual way to make them smaller; the Roth conversion calculator runs that.
State tax on the same households
State tax on the same 2026 income, in four states that do not tax Social Security. Texas stands for the states with no income tax. States that exempt part of retirement-plan withdrawals are left out of this table because the projection does not model those exclusions; the states that tax Social Security itself are in states that tax Social Security in 2026.
| State | Couple, 67, $60k IRA | Couple, 70, $150k IRA | Couple, 75, RMD |
|---|---|---|---|
| Texas | $0 | $0 | $0 |
| Arizona | $290 | $2,693 | $314 |
| North Carolina | $1,377 | $4,968 | $1,415 |
| California | $138 | $5,243 | $158 |
Educational, not tax advice. 2026 federal brackets and deductions; Social Security taxed under §86; state figures are the engine's state rules for 2026 (state standard deductions, exemptions, credits and brackets), with no local income tax. Each household's only income is Social Security and the traditional-account withdrawal. The full calculator adds pensions, brokerage gains, Roth accounts, IRMAA and every later year.
Common questions
How are retirement withdrawals taxed?
Withdrawals from a traditional 401(k) or IRA are ordinary income, taxed at the same federal brackets as wages, and they also count toward the provisional income that decides how much of Social Security is taxable. Qualified Roth withdrawals are tax-free, and brokerage sales are taxed only on the gain, at capital-gains rates.
How much tax will I pay on $110,000 of retirement income?
It depends on the mix. In the engine's 2026 figures, a couple at 67 with $50,000 of Social Security and a $60,000 IRA withdrawal pays $5,906 of federal tax, 5.4% of the total, because part of the benefit is untaxed and the 65+ deductions are large.
Are required minimum distributions taxed?
Yes, as ordinary income, and they count toward provisional income. In the example, a $60,976 RMD at 75 with $60,000 of Social Security means $6,633 of federal tax.
Which states do not tax retirement income?
States with no income tax do not tax withdrawals or Social Security. Most other states tax 401(k) and IRA withdrawals, some exempt part of them, and only a few still tax Social Security benefits.