Retirement - United States

    Pension Tax Calculator

    Estimate federal tax impact from pension or annuity distributions using taxable portion assumptions.

    Tax year: 2026Last updated: May 23, 2026Taxable portion input supportedFederal bracket layeringPension withholding comparison

    IRS Publication 575 - Pension and Annuity Income

    Tax treatment of pension and annuity distributions.

    IRS Topic 410 - Pensions and annuities

    General pension taxation and withholding references.

    Inputs

    Configure your scenario

    Enter pension details and filing status to estimate tax impact.

    Gross monthly

    $3,500

    Pension tax

    $5,020

    Taxable portion

    $42,000

    Breakdown

    Detailed estimate

    Taxable pension income (annual)
    $42,000
    Taxable pension income (monthly)
    $3,500
    Estimated federal tax from pension
    $5,020
    Withholding difference (due/refund)
    $1,020
    Gross monthly pension
    $3,500

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    FAQ

    Pension tax - quick answers

    Why can pension taxable percentage be less than 100%?+

    If you have after-tax basis in the plan, part of each payment may be a non-taxable return of basis.

    Does this include Social Security taxability?+

    No. This page isolates pension/annuity tax effects. Combine with total-return modeling for full retirement tax view.

    Official references

    Sources & Act Reference

    Pension tax references

    Taxable part concept

    Only the taxable portion of pension/annuity payments is included in federal taxable income.

    Withholding comparison

    Federal withholding on pension can be compared against estimated pension-driven tax to check under/over withholding.

    Rule Trace

    Applied rule and official references

    Applied rule: incremental tax from taxable pension portion layered over other taxable income

    Official quick links

    Publication 575

    Primary IRS pension/annuity publication.

    Topic 410

    Pension and annuity topic summary.

    Compliance checklist

    Use actual Form 1099-R taxable amount and basis allocation method from Publication 575 for filing precision.

    Smart Insight

    Estimated federal tax attributable to pension income is $5,020.

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