Retirement tax calculator

Estimated retirement income after tax

Total$72,300
Federal tax
$9,540
State tax
$2,160
Take-home income
$72,300
Estimated retirement income after tax
$72,300

Assumes up to 85% of Social Security is federally taxable, which is typical once other retirement income is counted. Most states exempt Social Security entirely.

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The short answer

Retirement income is not tax-free. Pension payments and traditional 401(k) or IRA withdrawals are taxed as ordinary income, and up to 85% of Social Security can be taxable at federal level. Enter your figures for an estimate.

Which retirement income is taxed

  • Traditional 401(k) and IRA withdrawals — taxed as ordinary income.

  • Pension payments — usually fully taxable.

  • Social Security — 0%, 50% or 85% taxable depending on combined income.

  • Roth withdrawals — tax-free once the account is qualified.

State differences matter

Most states exempt Social Security, and several have no income tax at all. Others tax pension and withdrawal income in full.

The formula

Taxable income = pension + withdrawals + up to 85% of Social Security. Tax = taxable income × (federal effective rate + state rate).

FAQ

What the retirement calculator can estimate

A retirement savings calculator projects how current savings and future contributions might grow under a chosen return assumption. It can also estimate a potential retirement balance or test how long a balance may support planned withdrawals. Because actual investment returns vary, compare several scenarios instead of treating one result as certain. Include workplace accounts such as a 401k, individual accounts, taxable investments, and any pension benefits that apply.

Effective retirement planning also considers inflation, taxes, health expenses, debt, and the timing of Social Security or pension income. Full retirement age is a Social Security term and is not necessarily the age when someone must stop working. An annuity may create a contractual income stream, but fees, guarantees, liquidity restrictions, and insurer claims-paying ability depend on the specific product. Review assumptions regularly as income and expenses change.

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