California Retirement Tax Calculator 2026
CA exempts Social Security — a surprise to many. But pensions and 401(k) are fully taxed up to 13.3%.
How to Use This Calculator
Tab "Tax on My Retirement Income"
Enter your annual Social Security benefit, pension income, 401(k)/IRA withdrawals, and any other income. Select your filing status and age. The calculator applies 2026 California FTB tax brackets (1%–13.3%) to your taxable retirement income. Social Security is automatically excluded since California exempts it entirely. The result shows your total CA state tax, effective rate, and tax attributed to each income source.
Tab "What's Exempt?"
A quick reference table showing which retirement income sources California taxes and which are exempt. The big surprise: Social Security is 100% exempt. Everything else — pensions, 401(k), IRA, military retirement, and investment income — is fully taxed at California's progressive rates. There is no early withdrawal penalty at the state level.
Tab "Compare States"
See how California's retirement tax compares to Florida, Pennsylvania, New York, and North Carolina on the same $65,000 retirement income. California lands in the middle — better than North Carolina but far more than zero-tax states. If your income is mostly Social Security, California is surprisingly competitive.
The Formulas
Taxable = Pension + 401(k)/IRA + Other income (Social Security is excluded — 100% exempt)
Step 2: Subtract standard deduction
Single / HoH: $5,540 · MFJ: $11,080
CA taxable income = Taxable retirement income − Standard deduction
Step 3: Apply CA 2026 progressive brackets
$0–$10,756 at 1%
$10,756–$25,499 at 2%
$25,499–$40,245 at 4%
$40,245–$55,866 at 6%
$55,866–$70,606 at 8%
$70,606–$360,659 at 9.3%
$360,659–$432,791 at 10.3%
$432,791–$721,314 at 11.3%
$721,314–$1,000,000 at 12.3%
$1,000,000+ at 13.3% (includes 1% Mental Health Services Tax)
Important: CA SDI (State Disability Insurance at 1.3%) does NOT apply to retirement income. SDI is only deducted from wages.
Example
$65,000 Total Retirement Income — Single, Age 68
On $65,000 of total retirement income, a single California retiree pays only about $561 per year in state tax. The effective rate is under 1% because the $30,000 Social Security component is entirely exempt. If the same retiree lived in North Carolina, they would pay roughly $888 — about $327 more per year. In Florida or Pennsylvania, they would pay $0.