Pension & Retirement Income Tax Calculator (2026)
See how much of your Social Security is actually taxable, and your total federal tax in retirement.
Fully taxable as ordinary income — pension payments, traditional (pre-tax) 401(k)/403(b)/IRA distributions.
Part-time work, interest, dividends, etc.
Pension & Retirement Income Tax Calculator
Retirement income isn’t one thing taxed one way — a pension and a traditional 401(k) withdrawal are fully taxable like a paycheck, Roth withdrawals are entirely tax-free, and Social Security sits in its own strange middle ground where anywhere from 0% to 85% of it might be taxed, depending on everything else you’re bringing in. This calculator walks through all of it for 2026, including the Social Security “provisional income” formula almost nobody gets right by hand, and the new senior bonus deduction most retirees haven’t heard of yet.
How Much of My Social Security Is Actually Taxed?
The IRS uses a number called “provisional income” — your other taxable income plus half your Social Security benefit — to decide. Below $25,000 (single) or $32,000 (married filing jointly), none of your benefit is taxed. Between $25,000-$34,000 (or $32,000-$44,000 married), up to 50% becomes taxable. Above those upper thresholds, up to 85% is taxable — and critically, these dollar figures have never been adjusted for inflation since 1994, which is why more retirees owe tax on their Social Security every year even though the law hasn’t technically changed.
The New Senior Bonus Deduction
For 2025 through 2028, the One Big Beautiful Bill Act added a $6,000 above-the-line deduction for anyone 65 or older ($12,000 on a joint return if both spouses qualify) — on top of the existing age-65 additional standard deduction that’s been around for decades. It phases out at 6 cents per dollar of income above $75,000 (single) or $150,000 (married filing jointly), fully gone $100,000 above that. Unlike itemized deductions, you get it automatically with the standard deduction — no extra paperwork, just a real reduction most retirees haven’t accounted for yet in their planning.
Roth vs. Traditional: The Tax-Free Difference
A Roth 401(k) or Roth IRA withdrawal, once qualified (generally age 59½+ and the account open 5+ years), costs nothing in federal tax — contributions were already taxed going in. Just as importantly, Roth withdrawals don’t count toward the provisional-income calculation above, so pulling from Roth accounts instead of traditional ones in a given year can also help keep more of your Social Security untaxed.
Example: $30,000 Pension, $24,000 Social Security, Single, Age 65+
Provisional income: $30,000 + half of $24,000 ($12,000) = $42,000 — above the $34,000 upper threshold, so the 85% tier applies. But “85% tier” doesn’t mean 85% of the benefit is automatically taxed — working the actual formula caps it lower here: $11,300 of the $24,000 benefit ends up taxable, not the full 85% ($20,400) some quick mental math might suggest. Total ordinary income: $30,000 + $11,300 = $41,300. Standard deduction: $16,100 (base) + $2,050 (age-65 addition) + $6,000 (senior bonus, no phase-out at this income) = $24,150. Taxable income: $17,150, for an estimated federal tax of just $1,810 — far below what taxing the full benefit and income at face value would suggest.
Frequently Asked Questions
Is Social Security taxable?
It depends on your other income. Up to 0%, 50%, or 85% of your benefits can be taxable, based on your “provisional income.” Below $25,000 (single) or $32,000 (MFJ), none is taxed; above $34,000/$44,000, up to 85% is. These thresholds haven’t been adjusted for inflation since 1994.
What is the new senior bonus deduction?
A new $6,000 above-the-line deduction for age 65+ (up to $12,000 if both spouses qualify), from the One Big Beautiful Bill Act for 2025-2028. It phases out at 6 cents per dollar of MAGI above $75,000 (single) or $150,000 (MFJ), and stacks on top of the existing age-65 additional standard deduction.
Are Roth 401(k) and Roth IRA withdrawals taxed?
No, qualified Roth withdrawals are completely tax-free. They also don’t count toward the provisional-income calculation that determines how much of your Social Security is taxable.
Does Married Filing Separately always mean 85% of Social Security is taxed?
If you lived with your spouse at any point during the year, yes — up to 85% is taxable regardless of income, with no 0% or 50% tier. Filing separately while living apart all year uses the normal tiered calculation instead.
This calculator provides a simplified federal-only estimate of 2026 retirement income tax. It does not model state income tax (many states exempt some or all retirement income), Required Minimum Distributions, or itemized deductions. Check a qualified tax professional for your specific situation.
