CALIFORNIA RETIREMENT INCOME TAX · TAX YEAR 2026
Does California tax Social Security and retirement income?
California does not tax Social Security benefits. California taxes pensions and 401(k) and IRA withdrawals at its regular rates, with no general retirement exclusion. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays $51 in California income tax for 2026.
Your estimate
- California income tax
- $51.44
- Federal income tax
- $1,810.00
- Total income tax
- $1,861.44
Subtracted from California income
- Social Security
- $11,300.00
California credits
- Senior exemption credit
- $158.00
California does not follow the federal senior deduction. The separate $20,000 Survivor Benefit Plan exclusion and the senior head of household credit are not modeled.
California tax at different retirement incomes
California income tax for 2026 on a single 67-year-old with $24,000 of Social Security, and on a married couple, both 67, with $20,000 each. Half the pension and IRA income is a private pension and half IRA withdrawals, all received by one spouse in the couple.
| Pension and IRA income | Single | Married |
|---|---|---|
| $20,000 | $0 | $0 |
| $40,000 | $390 | $0 |
| $60,000 | $1,415 | $103 |
| $100,000 | $4,753 | $1,630 |
| $150,000 | $9,403 | $5,014 |
Does California tax Social Security?
No. California excludes Social Security and equivalent Tier 1 Railroad Retirement benefits from taxable income.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and California taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and California taxes none of it.
Does California tax pensions?
Yes. California taxes private and government pensions as federal law does, with no age or income test. From 2025 through 2029, military retirees with federal AGI of $125,000 or less ($250,000 on a joint return) can exclude up to $20,000 of military retirement pay.
State tax for a single 67-year-old with $24,000 of Social Security, a $20,000 pension of each type and $10,000 of IRA withdrawals. Excluded is the part of the pension California exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $0 | $51 |
| California government | $0 | $51 |
| Federal civil service | $0 | $51 |
| Military | $20,000 | $0 |
Does California tax IRA and 401(k) withdrawals?
Yes. IRA and 401(k) withdrawals are taxed as on the federal return. Qualified Roth IRA withdrawals are not taxed, because they are not in federal income.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no California income tax for 2026.
At what age do retirement tax breaks start in California?
At 65. Each person 65 or older by December 31 gets a senior exemption credit, the same amount as the personal exemption credit, which reduces tax directly. California has no extra standard deduction at 65 and does not follow the new federal senior deduction.
State tax at each age where the rules change. The single filer has $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals; the couple, both that age, has $20,000 of Social Security each and a $30,000 pension and $20,000 of IRA withdrawals.
| Age | Single | Married |
|---|---|---|
| 64 | $209 | $219 |
| 65Senior exemption credit | $51 | $0 |
What the calculator leaves out
California does not follow the federal senior deduction. The separate $20,000 Survivor Benefit Plan exclusion and the senior head of household credit are not modeled.
- The exemption credit phase-out inside the California formula is measured on income after the Social Security subtraction rather than federal AGI.
The calculator uses California rules from the 2025 forms and instructions, the latest published.
Federal tax uses the 2026 brackets, the standard deduction with the extra amount at 65, and the $6,000 senior deduction. Estimates assume no other deductions, credits or local taxes except as noted.