Pennsylvania Retirement Tax Calculator
PA's hidden retirement gem: $0 state tax on SS, pensions, 401(k), IRA after 59½.
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How to Use This Calculator
Tax on My Retirement Income tab
Enter your Social Security, pension income, 401(k)/IRA withdrawals, and any W-2 wages you still earn. Set your age and filing status. The calculator shows exactly how much PA state tax you owe on each income source. If you are over 59½ with no wages, the answer is almost certainly $0.
What's Exempt? tab
A quick reference showing which retirement income sources are fully exempt in PA and which are still taxed. Social Security is always exempt. Pensions, 401(k), and IRA are exempt after 59½. Military retirement is exempt at any age. Only W-2 wages and self-employment income are taxed at 3.07%.
Compare States tab
See how PA stacks up against Florida, Texas, and California on a typical $65,000 retirement income. PA matches FL and TX at $0 — with advantages like lower property taxes than TX and no hurricane risk compared to FL.
Share your result
All inputs are encoded in the URL. Click Share to send your exact scenario to a spouse, financial advisor, or anyone considering retirement in PA.
Pennsylvania Retirement Tax Rules
Pennsylvania is one of the most retirement-friendly states in the country. After age 59½, virtually ALL standard retirement income is exempt from PA state income tax:
Private pensions → $0 tax (after 59½)
Government pensions → $0 tax (after 59½)
401(k) withdrawals → $0 tax (after 59½)
IRA distributions → $0 tax (after 59½)
Military retirement → $0 tax (any age)
W-2 wages / self-employment → 3.07% flat rate (any age)
Interest & dividends → 3.07% flat rate
The key age threshold is 59½. Before that age, pension and 401(k)/IRA distributions are taxed at the standard 3.07% flat rate. After 59½, they become fully exempt. Pennsylvania does not use graduated tax brackets — the 3.07% flat rate applies to all taxable income regardless of amount.
Most PA municipalities also exempt retirement income from local earned income tax (EIT). Only wages and self-employment income are typically subject to local EIT of 1-3%.
Example
David — Retired teacher, age 68, single filer
David retired from teaching in Pennsylvania. He receives Social Security, a state pension, and takes 401(k) withdrawals. He also works part-time at a hardware store.
Income and PA state tax
David pays $0 in PA state tax on $65,000 of retirement income. Every dollar of his Social Security, pension, and 401(k) is fully exempt because he is over 59½.
Now add part-time wages
Even with $20,000 in part-time wages, David pays only $614/year in PA state tax on $85,000 total income — an effective rate of just 0.72%. The same income in California would result in roughly $1,800+ in state tax.