Retiring in California: how your income is taxed
California is fairly tax-friendly for retirees. On a typical retirement income it ranks #26 of 51 for the lowest state income tax.
California retirement income in 2026
California excludes Social Security included in federal AGI. Taxable private pensions and traditional retirement withdrawals are generally taxed at California's regular rates; there is no general retirement-income exclusion.
This estimate uses FTB's October 2026 indexing figures, including the $5,900 single or $11,800 joint standard deduction. FTB says its complete 2026 tax-rate and exemption publication is due in late December. The 2025 forms linked below explain reporting and eligibility; their older indexed amounts are not used for this 2026 estimate.
Full-year California resident, general private pension and traditional IRA income. The military subtraction and higher-income exemption-credit phaseout need separate checking. Sources checked .
Assumptions behind this comparison
The ranking uses a full-year resident, single filer age 67, with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals under 2026 rules. It models a general private pension and traditional IRA withdrawals. Public or military pension exceptions, early-distribution penalties and itemized deductions require separate checking. Maryland and Indiana estimates include an approximate statewide-average county income tax; other local income taxes are not modeled. A state with no income tax differs from a state that exempts only specified retirement income.
The joint table uses two spouses age 67, with each income category split equally between them. Personal exclusions follow each spouse's own eligible income; some states instead allow a joint cap. The calculator initially assigns household income to you and lets you enter your spouse's actual age and share. Read the source instructions for your pension type.
The rules in California
- Social Security: Social Security benefits are fully exempt from California income tax.
- Pensions: All private and government pensions are fully taxed as ordinary income. No general pension exclusion. Military retirement: for 2025-2029, up to $20,000 of military retirement or Survivor Benefit Plan pay can be excluded if federal AGI is $125,000 or less ($250,000 or less joint). Otherwise it is taxed.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are taxed as ordinary income at California's regular rates.
- At 65 and older: Each filer 65 or older can receive a $158 senior exemption credit under the published 2026 indexing. The credit phases out at higher incomes; that reduction is not calculated here.
Calculate your California retirement taxes
State income tax in California: $390 a year
In California, qualifying employer-plan withdrawals can receive the pension exclusion while traditional IRA withdrawals do not. Keep each account in its own field when changing state; the calculator applies the state-specific treatment.
The employer-plan field supports federally taxable private 401(k) / 403(b) retirement distributions owned by someone aged 60 or older. Earlier distributions and Hawaii, Mississippi or Pennsylvania employer-plan scenarios are not calculated; funding or plan retirement eligibility needs a separate check. Enter each amount once; do not include completed rollovers, Roth payments or special public/military plans.
Older shared links did not identify employer-plan withdrawals separately. Pension and IRA amounts have been left unchanged. If an old amount includes 401(k) or 403(b) withdrawals, move that portion into the employer-plan field before comparing states; the tool cannot infer the original account type.
Household totals include taxable private pensions and traditional retirement withdrawals. Other ordinary income means taxable interest and ordinary dividends; capital gains, qualified dividends, tax-exempt interest, wages, Roth distributions and special public or military pension rules need a separate calculation. Disability and survivor eligibility are not assessed by this tool. Age bands represent the listed ages for the full year; midyear eligibility and birth-date exceptions need checking.
Local income taxes are not modeled here, except the approximate statewide-average county rates included when you select Maryland or Indiana.
In California you'd pay about $390 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,274 (6.8% total).
California ranks #26 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in California
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 traditional IRA withdrawals | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals | $390 | $0 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $4,753 | $1,630 | $19,812 |
Age 67, 2026 rules including the federal senior deduction. For the joint column, income is the household total, both spouses are 67, and each owns 50% of every income category. State estimates apply California's main exclusions and may differ for income-tested credits.
Lower-tax states for the age-67 example
The amounts below use the fixed example above. Comparison links carry the last valid household entered in the calculator, including each spouse's income and age; the destination recalculates that household. Finish correcting invalid entries before using a comparison.
Moving to California in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to California come from (IRS migration data, 2022–2023).
- Texas to California
- New York to California
- Washington to California
- Arizona to California
- Nevada to California
- Florida to California
Frequently asked questions
Does California tax Social Security?
Not taxed. Social Security benefits are fully exempt from California income tax.
Does California tax pensions?
Taxed. All private and government pensions are fully taxed as ordinary income. No general pension exclusion. Military retirement: for 2025-2029, up to $20,000 of military retirement or Survivor Benefit Plan pay can be excluded if federal AGI is $125,000 or less ($250,000 or less joint). Otherwise it is taxed.
Does California tax 401(k) and IRA withdrawals?
Taxed. 401(k) and IRA withdrawals are taxed as ordinary income at California's regular rates.
Is California a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 private defined-benefit pension, $20,000 traditional IRA withdrawals, California charges about $390 in state income tax, ranking #26 of 51 (lowest tax first).
Related
Sources: ftb.ca.gov, ftb.ca.gov (2), lao.ca.gov, moaa.org. Rules reviewed .