Retirement Tax Estimate Calculator
Last updated July 2, 2026
Last reviewed July 8, 2026
Retirement income is taxed in ways that catch many people off guard, because different sources face entirely different treatment. Withdrawals from traditional 401(k) and IRA accounts are taxed as ordinary income — the same rates that apply to wages. Roth account withdrawals are generally tax-free if the account has been open at least five years. Social Security benefits are taxable at the federal level at rates of 50 to 85 percent of the benefit, depending on your combined income, a calculation that adds your adjusted gross income, nontaxable interest, and half your Social Security benefit. Required Minimum Distributions from tax-deferred accounts start at age 73 and stack on top of other income, potentially pushing retirees into higher brackets than expected.
The sequencing of withdrawals has meaningful tax consequences. Drawing from taxable accounts first while allowing tax-deferred accounts to continue growing is one common strategy. Roth conversions during low-income years between retirement and RMD age can reduce future tax exposure. Qualified Charitable Distributions allow people over 70½ to direct up to $108,000 directly from an IRA to charity in 2026, satisfying RMD requirements without the income showing up on the tax return. Coordinating Medicare Part B premiums adds another tax-adjacent consideration: premiums are income-adjusted under IRMAA, and a single high-income year — from a Roth conversion or large withdrawal — can increase Medicare costs for the following two years.
Building a tax estimate into your retirement income plan before you retire, not after. Know which accounts produce taxable versus tax-free income, model how your Social Security becomes taxable as other income rises, and identify whether the years between retirement and RMD age offer Roth conversion opportunities that reduce your lifetime tax bill.