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.
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, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
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, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $0 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $307 | $307 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. 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 pension, $20,000 401(k)/IRA, 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 .