Florida retirees keep $4,000–$14,000 more per year than those in high-tax states like Minnesota or California on the same income. Enter your actual Social Security, pension, and 401(k)/IRA to compare real after-tax take-home in any two states — calculated using the correct IRS formula, not a flat rate approximation.
Sources: IRS Publication 915 · IRS Publication 554 · IRS OBBBA Guidance
The three cases below are calculated using the same engine as the interactive tool. All use 2026 federal brackets, standard deductions, and state-specific retirement exemption rules.
| Profile | Income Mix | State A | State B | Annual After-Tax Difference |
|---|---|---|---|---|
| Single, age 65+, $72,000/yr | SS $24k + pension $30k + 401k $18k | Florida — no state income tax | Minnesota — taxes SS + full retirement income | ~$5,000–$7,000 more in Florida |
| MFJ, both age 65+, $55,000/yr | SS $30k + 401k $25k | Texas — no state income tax | Oregon — taxes 401k at full OR brackets | ~$1,500–$2,000 more in Texas |
| Single, age 65+, $120,000/yr | SS $35k + 401k $60k + Roth $25k | California — full CA brackets on 401k; SS exempt | Nevada — no state income tax | ~$2,200–$2,800 more in Nevada (CA taxes 401k only; SS/Roth exempt) |
Estimates based on 2026 rules. OBBBA enhanced senior deduction applied where MAGI ≤ $75,000. Federal tax identical in all cases — only state tax differs. Enter your own figures in the calculator above for a personalised result.
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This calculator uses a deterministic engine — every number comes from official IRS and state revenue rules, not an AI-generated estimate. Here's exactly what it computes:
Provisional income = pension + Traditional 401k/IRA + other income + 50% of Social Security. Roth distributions do NOT count toward provisional income.
The exact taxable amount uses the IRS Pub 915 worksheet formula — not a simple percentage. The thresholds have never been inflation-adjusted, so most retirees with Social Security plus other income end up with 85% of their SS taxable federally.
Applied using full 2026 graduated brackets (10/12/22/24/32/35/37%) on the resulting taxable income. Identical for both states — the state comparison affects step 4 only.
Each state has its own rules for what portion of retirement income is taxable. The calculator applies:
As of 2026, only 8 states tax Social Security benefits. Several recent exemptions: West Virginia fully phased out SS taxation in 2026; Nebraska, Kansas, and Missouri eliminated SS taxes in 2024. The 8 remaining SS-taxing states are:
| State | Rule | Income Threshold |
|---|---|---|
| Colorado | Age 65+: fully exempt. Age 55–64: exempt if AGI ≤ threshold | Age 55–64: ≤ $75,000 single / $95,000 MFJ |
| Connecticut | Fully exempt below threshold; 25% taxable above threshold | ≤ $75,000 single / $100,000 MFJ = fully exempt |
| Minnesota | Tiered exemption that phases out as provisional income rises | Fully exempt below ~$78,000 (single) / ~$100,000 (MFJ) provisional income |
| Montana | Mirrors federal SS taxation exactly (up to 85%) | Same as federal thresholds ($25k–$34k single / $32k–$44k MFJ) |
| New Mexico | Age 65+: fully exempt below threshold; mirrors federal above | Age 65+: ≤ $100,000 single / $150,000 MFJ = fully exempt |
| Rhode Island | Exempt if at full retirement age (65+) AND income below threshold | ≤ $95,800 single / $119,750 MFJ |
| Utah | 4.55% flat tax; mirrors federal SS inclusion (low-income credit available) | Credit available for lower incomes — see tax.utah.gov |
| Vermont | Fully exempt below threshold; phases out above; mirrors federal at highest incomes | Fully exempt: ≤ $65,000 single / $85,000 MFJ AGI |
All other 42 states + DC do not tax Social Security benefits. Sources: each state's Department of Revenue, verified June 2026.
Nine states have no state income tax at all, making all retirement income tax-free at the state level: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. Additionally, several income-tax states fully exempt retirement income: Illinois exempts all retirement income, Iowa exempts retirement income for age 55+, Mississippi exempts all retirement income, and Pennsylvania exempts normal retirement income. Colorado (as of 2026) exempts all pension and annuity income following SB25-136. You still owe federal income tax in all these states.
Most states do not tax Social Security — as of 2026, only 8 states tax SS benefits: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont. Each has different rules and income thresholds. For example, Colorado fully exempts SS for age 65+; Rhode Island exempts SS if you're at full retirement age and your income is below $95,800 (single) / $119,750 (MFJ); Vermont exempts SS if your AGI is below $65,000 (single) / $85,000 (MFJ). The other 42 states plus DC do not tax Social Security at all.
The IRS uses a 'provisional income' formula to determine how much of your Social Security is taxable federally. Provisional income = your other income (pension, 401k withdrawals, interest) + 50% of your Social Security benefit. If provisional income is below $25,000 (single) / $32,000 (MFJ), none of your SS is taxable. Between $25,000–$34,000 (single) / $32,000–$44,000 (MFJ), up to 50% is taxable. Above $34,000 (single) / $44,000 (MFJ), up to 85% is taxable. These thresholds have never been inflation-adjusted since they were set in 1983 and 1994, so most retirees with moderate income have 85% of their SS taxable.
It depends heavily on the state. No-income-tax states (Florida, Texas, etc.) don't tax 401(k) withdrawals. States like Illinois, Iowa (age 55+), Mississippi, and Pennsylvania fully exempt retirement income including 401(k)/IRA withdrawals. New York exempts the first $20,000. Georgia exempts up to $65,000 for age 65+. High-tax states like California, Oregon, and Minnesota tax 401(k) withdrawals as ordinary income at full graduated rates with no special retirement exemption. Traditional 401(k) and IRA withdrawals are pre-tax money — they're always taxable federally. Roth IRA and Roth 401(k) qualified distributions are tax-free at both the federal and state level in most states.
The One Big Beautiful Bill Act (OBBBA) introduced an additional $6,000 deduction per eligible person for taxpayers age 65 or older, effective for tax years 2025 through 2028. This is in addition to — not a replacement for — the existing additional standard deduction for age 65+ (approximately $2,000 for single filers, $1,600 per spouse for MFJ). The OBBBA deduction phases out for taxpayers with MAGI above $75,000 (single) / $150,000 (MFJ). For a married couple both age 65+ with MAGI under $150,000, total deductions can increase by $12,000 compared to prior law, significantly reducing federal taxable income.
No — qualified Roth IRA and Roth 401(k) distributions are entirely tax-free at the federal level under IRC §408A(d)(1). To qualify, the account must be at least 5 years old and you must be age 59½ or older. Most states follow the federal treatment and also exempt Roth distributions. Roth income does not count toward the IRS provisional income formula for Social Security taxation, so it won't cause more of your Social Security to become taxable. This makes Roth accounts particularly valuable in retirement — enter your Roth withdrawals separately in this calculator to see the correct, tax-free treatment.
It can — but the savings depend entirely on your income mix. On $60,000 of retirement income (Social Security + 401k), a retiree in a high-tax state like Minnesota or Oregon might owe $4,000–$8,000 more in annual tax than the same retiree in Florida or Texas. Over 20 years, that's $80,000–$160,000. However, other factors matter: property taxes in Texas are very high (average ~1.74% effective rate vs Florida's ~0.89%), healthcare access, cost of living, and proximity to family. Use this calculator to quantify the income tax difference for your specific situation, then factor in the full picture.
Required Minimum Distributions (RMDs) are mandatory annual withdrawals from Traditional IRA, 401(k), and most other pre-tax retirement accounts. Starting at age 73 (as of 2023 SECURE 2.0 Act changes), the IRS requires you to withdraw a minimum amount each year based on your account balance and life expectancy. RMDs are fully taxable as ordinary income — enter your total annual Traditional IRA/401(k) withdrawal amount (including your RMD) in the 'Traditional IRA/401(k) withdrawals' field of this calculator. Roth accounts are NOT subject to RMDs during the original owner's lifetime. If RMDs push you into a higher bracket, consider Roth conversion strategies before age 73.
Most retirement tax tools apply a single state tax rate to total income, which significantly overstates tax for most retirees. This calculator applies full graduated bracket calculations for major progressive-rate states (California, New York, Minnesota, Oregon, Vermont, and others), applies state-specific retirement income exemptions (New York's $20,000 exemption, Georgia's $65,000 age-65+ exemption, etc.), handles state-specific Social Security rules for all 8 SS-taxing states, and correctly treats Roth distributions as tax-free. The result is a substantially more accurate comparison — the difference can be $2,000–$5,000+ per year in states with generous retirement exemptions.
No. Retirement income — Social Security benefits, pension payments, IRA/401(k) withdrawals, and investment income — is not subject to FICA payroll taxes (Social Security and Medicare). FICA only applies to earned income from wages or self-employment. Medicare Part B and Part D premiums (IRMAA surcharges) also depend on your income but are not income taxes and are not included here. The calculator shows federal income tax, state income tax, and total estimated tax burden only. For a complete retirement budget, factor in Medicare premiums separately.
Disclaimer: This calculator is for educational and informational purposes only. It does not constitute tax, legal, or financial advice. Results are estimates based on 2026 federal and state rules. Actual tax liability depends on your full tax situation including deductions, credits, local taxes, and factors not captured here. State rules are subject to change. The OBBBA enhanced senior deduction phase-out mechanics are based on best available IRS guidance as of June 2026 and may be clarified by future IRS guidance. Capital gains, qualified dividends, and RMD calculations are not included. Always consult a qualified CPA, enrolled agent, or tax attorney before making relocation or financial decisions.
Authored by: CountryTaxCalc Research Team | Last Updated: June 2026
Primary sources: IRS Publication 915 (SS taxation) · IRS Publication 554 (seniors) · IRS Rev. Proc. 2025-32 (2026 brackets)