PENNSYLVANIA RETIREMENT INCOME TAX · TAX YEAR 2026
Does Pennsylvania tax Social Security and retirement income?
Pennsylvania does not tax Social Security benefits. Pennsylvania exempts pensions from eligible employer plans after retirement and IRA withdrawals from age 59 1/2. A single 67-year-old with $24,000 of Social Security, a $20,000 private pension and $10,000 of IRA withdrawals pays no Pennsylvania income tax for 2026.
Your estimate
- Pennsylvania income tax
- $0.00
- Federal income tax
- $1,810.00
- Total income tax
- $1,810.00
Subtracted from Pennsylvania income
- Social Security (not Pennsylvania income)
- $11,300.00
- Retirement income exemption
- $30,000.00
Pensions are treated as paid by an eligible Pennsylvania plan after retirement from that employer at its retirement age; otherwise they are taxable above contributions. IRA withdrawals before 59 1/2 are treated as taxable in full (no contribution basis).
Pennsylvania tax at different retirement incomes
Pennsylvania 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 | $0 | $0 |
| $60,000 | $0 | $0 |
| $100,000 | $0 | $0 |
| $150,000 | $0 | $0 |
Does Pennsylvania tax Social Security?
No. Social Security and railroad retirement benefits are never taxable in Pennsylvania.
Of the single 67-year-old's $24,000 in benefits, $11,300 is federally taxable and Pennsylvania taxes none of it. Of the couple's $40,000, $28,100 is federally taxable and Pennsylvania taxes none of it.
Does Pennsylvania tax pensions?
No. A pension or 401(k) payout from an eligible Pennsylvania retirement plan is exempt once you have retired from that employer after meeting the plan's age or service requirement. Pennsylvania state, school and municipal plans and federal civil service pensions qualify, and military retired pay is exempt. Payouts before that, or from plans that do not qualify, such as ESOPs and profit-sharing plans with no annuity option, are taxed to the extent they exceed contributions already taxed.
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 Pennsylvania exempts.
| Pension | Excluded | State tax |
|---|---|---|
| Private | $20,000 | $0 |
| Pennsylvania government | $20,000 | $0 |
| Federal civil service | $20,000 | $0 |
| Military | $20,000 | $0 |
Does Pennsylvania tax IRA and 401(k) withdrawals?
No. Traditional and Roth IRA withdrawals are exempt from age 59 1/2. An earlier withdrawal is taxed only to the extent it exceeds contributions you already paid tax on.
With $24,000 of Social Security, $20,000 of IRA withdrawals and no other income, a single 67-year-old pays no Pennsylvania income tax for 2026.
At what age do retirement tax breaks start in Pennsylvania?
At 59 1/2, for IRA withdrawals; the calculator uses age 60. Pensions are exempt at the plan's own retirement age, and Pennsylvania has no extra exemption or credit at 65.
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 |
|---|---|---|
| 59 | $307 | $614 |
| 60Retirement income exemption | $0 | $0 |
What the calculator leaves out
Pensions are treated as paid by an eligible Pennsylvania plan after retirement from that employer at its retirement age; otherwise they are taxable above contributions. IRA withdrawals before 59 1/2 are treated as taxable in full (no contribution basis).
- IRA distributions are exempt from 59 1/2; the calculator uses age 60 by December 31.
- Tax Forgiveness eligibility income is taken as Pennsylvania taxable income; it also counts some nontaxable income.
The calculator uses Pennsylvania 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.