Retiring in Pennsylvania: how your income is taxed
Pennsylvania is very tax-friendly for retirees. On a typical retirement income it ranks tied for #1 of 51 with 18 other states for the lowest state income tax.
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 Pennsylvania
- Social Security: Social Security is never taxable for Pennsylvania personal income tax.
- Pensions: Pensions from eligible plans are exempt once paid after retirement age or the plan's required years of service. Government and military pensions are also exempt.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals are exempt after retirement age; for IRAs that is 59½, when federal early-withdrawal penalties stop. Early withdrawals are taxed on the amount above contributions you already paid tax on.
Calculate your Pennsylvania retirement taxes
State income tax in Pennsylvania: $0 a year
In Pennsylvania, 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 Pennsylvania you'd pay about $0 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,664 (6.2% total).
Pennsylvania ranks tied for #1 of 51 with 18 other states for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in Pennsylvania
| 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 | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 private defined-benefit pension, $50,000 traditional IRA withdrawals, $10,000 other income | $307 | $307 | $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 Pennsylvania's main exclusions and may differ for income-tested credits.
Moving to Pennsylvania 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 Pennsylvania come from (IRS migration data, 2022–2023).
- New York to Pennsylvania
- New Jersey to Pennsylvania
- Florida to Pennsylvania
- Maryland to Pennsylvania
- Virginia to Pennsylvania
- California to Pennsylvania
Frequently asked questions
Does Pennsylvania tax Social Security?
Not taxed. Social Security is never taxable for Pennsylvania personal income tax.
Does Pennsylvania tax pensions?
Not taxed. Pensions from eligible plans are exempt once paid after retirement age or the plan's required years of service. Government and military pensions are also exempt.
Does Pennsylvania tax 401(k) and IRA withdrawals?
Not taxed. 401(k) and IRA withdrawals are exempt after retirement age; for IRAs that is 59½, when federal early-withdrawal penalties stop. Early withdrawals are taxed on the amount above contributions you already paid tax on.
Is Pennsylvania 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, Pennsylvania charges about $0 in state income tax, ranking tied for #1 of 51 with 18 other states (lowest tax first).
Related
Sources: pa.gov. Rules reviewed .