California retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | No | Not taxed, with no income test. Railroad retirement is exempt too. |
| IRA withdrawals | Yes | Fully taxable. Before 59½ California adds its own 2.5% tax on early distributions, on top of the federal 10%. |
| 401(k), 403(b) and 457(b) | Yes | 401(k), 403(b) and 457(b) payouts are fully taxable. |
| Private pensions | Yes | Fully taxable; no pension exclusion. |
| Government pensions | Yes | State, local and federal civil service pensions (CalPERS, CalSTRS, FERS, CSRS) are fully taxable. |
| Military retirement pay | Partly | Up to $20,000 of military retired pay excluded for 2025 to 2029 (SB 132), and separately up to $20,000 of Survivor Benefit Plan annuity, when federal AGI is $125,000 or less ($250,000 joint). A cliff: one dollar over and none is excluded. |
| Roth conversions and Roth withdrawals | Partly | Conversions are taxable like federal; qualified Roth withdrawals are not. |
What retirees pay in California
Five households, priced on the same 2026 tax engine Killion’s planner uses: Social Security plus withdrawals from a traditional IRA, the standard deduction, and every age break the state and federal returns give. Estimates for planning, not tax advice.
| Household | Social Security | IRA withdrawals | California tax | Federal tax |
|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $0 (0.0%) | $0 |
| Single, 67 | $30,000 | $50,000 | $815 (1.0%) | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $0 (0.0%) | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $1,630 (1.1%) | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $1,573 (2.6%) | $5,020 |
California compared with other states
The same two households in each state we cover. In the nine states with no income tax (Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming) both pay $0 of state tax.
| State | Married, 67: $42,000 Social Security, $40,000 IRA | Single, 67: $30,000 Social Security, $50,000 IRA |
|---|---|---|
| Arizona | $0 | $646 |
| California | $0 | $815 |
| Colorado | $0 | $1,139 |
| Maryland | $0 | $964 |
| Massachusetts | $1,490 | $2,245 |
| Michigan | $0 | $0 |
| North Carolina | $579 | $1,486 |
| Ohio | $347 | $682 |
| Pennsylvania | $0 | $0 |
| Virginia | $0 | $1,325 |
2026 rates and senior breaks
California’s rate: 1% to 12.3% in nine brackets, plus 1% on taxable income over $1 million.
| Rate | Single, over | Married filing jointly, over |
|---|---|---|
| 1% | $0 | $0 |
| 2% | $11,456 | $22,912 |
| 4% | $27,157 | $54,314 |
| 6% | $42,861 | $85,722 |
| 8% | $59,498 | $118,996 |
| 9.3% | $75,197 | $150,394 |
| 10.3% | $384,109 | $768,218 |
| 11.3% | $460,927 | $921,854 |
| 12.3% | $768,213 | $1,000,000 |
| 13.3% | $1,000,000 | $1,536,426 |
- Senior exemption credit of $158 per person 65 or older in 2026, on top of the $158 personal credit.
- No deduction for retirement income and no conformity to the federal senior deduction.
Local taxes: No local income tax on retirement income.
What people get wrong about California
- Pensions and IRA withdrawals received after you move out of California are not California income: federal law (4 U.S.C. 114) bars a state from taxing a nonresident’s retirement income.
- An IRA withdrawal before 59½ costs 2.5% more in California than the federal penalty alone.
Tax on a 401(k) withdrawal in California
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | California |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $109 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $973 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $4,911 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $14,211 |
Social Security across all fifty states, including the eight that can tax it, is on which states tax Social Security. Required minimum distributions add to this income from 73: see the RMD on $1 million.
The retirement tax calculator, set to California
Set to a married couple, both 67, with $42,000 of Social Security and $40,000 of IRA withdrawals. Change any input, including the state.
On $82,000 of income, the 2026 tax is about $1,295: $1,295 federal and $0 California. $20,450 of your Social Security is taxable. The next $1,000 you withdraw from an IRA would cost $185 in tax.
This year’s income sets your Medicare premiums for 2028. See your IRMAA tier.
Figures checked on against FTB Publication 1001 (2025), California adjustments (PDF), FTB Form 3805P instructions, early distributions (PDF), FTB Publication 1032, military retirement exclusion (PDF) and FTB Tax News, 2026 inflation adjustments (October 2026).