Retirement Tax
Calculator
Federal + state income tax + Medicare IRMAA surcharges — all in one number. See what retirement actually costs by state at your income.
Your retirement income
Portfolio & Life
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
PA: Great retirement state but 4.5% inheritance tax to children from dollar one. Your heirs will owe this.
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
$225
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
+$225
Take home
$7,510/mo
Years
11.1
State tax
$934
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$13K
+$934
Take home
$7,451/mo
Years
11.2
Withdrawal Order Strategy
Alaska: No State Tax on Retirement Income
Draw IRA / 401K Freely
No state income tax drag on withdrawals here. Prioritize Roth conversions before 63 to reduce future IRMAA. Sequence: taxable accounts first, then traditional IRA/401K, Roth as last resort.
Roth Conversion Window
Convert traditional IRA to Roth before age 63. Roth distributions don't count toward MAGI or IRMAA. Low-income years between retirement and RMDs are the ideal window.
IRMAA Lookback Rule
IRMAA is based on income 2 years prior. Plan large IRA distributions now for 2026. A one-time spike can cost $1,400-$5,000 extra per year in Medicare premiums.
Strategies reflect the top-ranked state for your current income profile. Sequence changes as withdrawals shift your MAGI. Consult a tax professional before large Roth conversions or distribution changes.
What is IRMAA?
IRMAA stands for Income-Related Monthly Adjustment Amount. It's a Medicare surcharge that most people never hear about until it hits them.
Everyone on Medicare pays a base Part B premium (~$175/mo in 2024). But if your income exceeds certain thresholds, Medicare charges you extra — on top of that base. A lot extra. Up to $420/mo more per person at the highest tier.
For a married couple both on Medicare at the highest tier, that's $10,000/year in extra premiums — on top of regular Medicare costs.
The 2024 IRMAA tiers (single filer)
Married thresholds are double these amounts.
The Cliff Problem
IRMAA tiers are cliffs, not ramps. One extra dollar of income can jump you to the next tier and cost $840–$2,400 more per year. This is why careful IRA withdrawal planning matters so much in retirement.
It Uses 2-Year-Old Income
Medicare looks at your tax return from 2 years ago to set your premium. A one-time income spike (selling a house, large IRA withdrawal) can hit you 2 years later. Plan large distributions carefully.
How to Reduce It
Roth conversions before 63 avoid future IRMAA. Qualified Charitable Distributions (QCDs) from IRAs don't count toward MAGI. Municipal bond income doesn't count. Strategic withdrawal sequencing matters enormously.
Want the full breakdown? Read our guide on IRMAA and how to avoid the cliffs.
Read the guide →How this works: Federal income tax uses 2024 brackets with standard deduction (including age 65+ addition). Capital gains use preferential 0%/15%/20% LTCG rates, stacked on top of ordinary income. NIIT (3.8%) applied on investment income above $250K (married) / $200K (single). Roth withdrawals are excluded from AGI and IRMAA MAGI — tax-free. SS taxation uses the provisional income formula — up to 85% may be federally taxable. State income tax uses actual bracket data at your income level. Medicare IRMAA uses 2024 CMS tables. IRMAA is based on income from 2 years prior. Portfolio longevity assumes level monthly spending equal to net take-home. Does not include property tax, sales tax, or long-term care costs. Not financial advice — consult a tax professional.
How the take-home number is computed
Enter what you expect to receive each year from Social Security, a pension, traditional IRA or 401(k) withdrawals, Roth withdrawals and investment income, and the calculator works out three bills for every state and subtracts them from the gross. Federal income tax follows the IRS 2025 brackets and standard deduction, with Social Security taxed at none, half or 85 percent of the benefit depending on combined income, long-term capital gains at their own rates, and the 3.8 percent net investment income tax above its threshold. State income tax uses each state's own brackets and its rules on retirement income: whether it taxes Social Security, how much pension income it exempts, and whether it exempts retirement income altogether. Medicare premiums use the CMS 2025 Part B and Part D tables, so the IRMAA surcharge appears once your modified adjusted gross income crosses a tier, and the page shows how many dollars you are from the next one.
State rules are tax year 2026 law, last checked 2026-09-14. In the current data, 42 states do not tax Social Security benefits and 8 do (Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah, Vermont); 9 states have no income tax at all. Roth withdrawals are counted as income you receive but not as taxable income or as part of MAGI. Property tax, sales tax and the cost of housing are outside this calculator; the state cost of living calculator covers those.