Pennsylvania retirement taxes at a glance
| Income | Taxed? | How |
|---|---|---|
| Social Security | No | Not taxable, with no income test. |
| IRA withdrawals | Partly | Exempt from 59½. Before then, taxable only on the part above contributions you already paid Pennsylvania tax on. |
| 401(k), 403(b) and 457(b) | Partly | Exempt when the plan is an eligible Pennsylvania plan and you retired after meeting its age or years-of-service rule. In-service and early payouts are taxed above your contributions. |
| Private pensions | No | Exempt after retirement from an eligible plan, same test. |
| Government pensions | No | SERS, PSERS, PMRS and federal civil service pensions are not taxable. |
| Military retirement pay | No | Not taxable, with no cap or age test. |
| Roth conversions and Roth withdrawals | No | A conversion moved directly, or redeposited in full within 60 days, is not taxable at any age. |
What retirees pay in Pennsylvania
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 | Pennsylvania tax | Federal tax |
|---|---|---|---|---|
| Single, 67 | $24,000 | $20,000 | $0 (0.0%) | $0 |
| Single, 67 | $30,000 | $50,000 | $0 (0.0%) | $6,016 |
| Married, both 67 | $42,000 | $40,000 | $0 (0.0%) | $1,295 |
| Married, both 67 | $50,000 | $100,000 | $0 (0.0%) | $10,904 |
| Single, 62, before Social Security | $0 | $60,000 | $0 (0.0%) | $5,020 |
Pennsylvania 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
Pennsylvania’s rate: Flat 3.07%, with no standard deduction or personal exemption.
- No age deduction, but Tax Forgiveness (Schedule SP) can wipe out the tax at low incomes, and it leaves Social Security and exempt retirement income out of the income test.
Local taxes: Local earned income taxes do not apply to Social Security, pensions or retirement distributions.
What people get wrong about Pennsylvania
- Pennsylvania taxed your 401(k) contributions when you made them, which is why early payouts are taxed only above them.
- A commercial annuity you bought yourself is taxed as interest, not as a retirement benefit.
Tax on a 401(k) withdrawal in Pennsylvania
A single filer aged 60 with no other income, taking one withdrawal in 2026:
| Withdrawal | Federal | Pennsylvania |
|---|---|---|
| Tax on a $25,000 401(k) withdrawal | $890 | $0 |
| Tax on a $50,000 401(k) withdrawal | $3,820 | $0 |
| Tax on a $100,000 401(k) withdrawal | $13,170 | $0 |
| Tax on a $200,000 401(k) withdrawal | $36,734 | $0 |
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 Pennsylvania
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 Pennsylvania. $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 PA-40 instructions (2025) (PDF), Pennsylvania Personal Income Tax Guide, gross compensation (PDF) and Pennsylvania Department of Revenue, personal income tax.