California Retirement Income Tax Calculator
California never taxes Social Security, but it does tax pensions, IRA and 401(k) withdrawals. Here is what you would owe the state.
California does not tax Social Security or Railroad Retirement benefits. It does tax pensions (including CalPERS and CalSTRS), annuities, and IRA and 401(k) withdrawals at regular income tax rates. Seniors 65+ get an extra exemption credit, and up to $20,000 of military retirement pay is excluded for tax years 2025–2029 for incomes under the limit.
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Retirement Income Tax Calculator
Estimated California Income Tax
Social Security excluded
Income CA taxes
Share of all income
How this is calculated
What California taxes. Pensions (public and private, including CalPERS and CalSTRS), annuities, and traditional IRA, 401(k) and 403(b) withdrawals are taxed at California's regular 1%–12.3% rates after the standard deduction. Roth withdrawals that are qualified are not taxed.
What California does not tax. Social Security benefits are fully exempt. So is Railroad Retirement Tier 1 and Tier 2.
Credits for tax year 2025. Each filer gets a personal exemption credit of $153, and each filer 65 or older gets an extra senior exemption credit of $153. The credits shrink by $6 for every $2,500 of income over $252,203 (single) or $504,411 (joint).
Early withdrawals. On top of regular tax, California adds its own 2.5% tax on early IRA or 401(k) distributions that are subject to the federal 10% penalty.
Military retirement. For tax years 2025 through 2029, up to $20,000 of uniformed-services retirement pay (or Survivor Benefit Plan annuity) is excluded if federal AGI is at or under $125,000 ($250,000 joint). Above the limit, none is excluded. The calculator checks the limit against your income excluding Social Security.
Frequently Asked Questions
Does California tax Social Security?
No. California fully exempts Social Security benefits from state income tax, as well as Railroad Retirement benefits.
Does California tax pensions and 401(k) withdrawals?
Yes. Pensions, annuities and traditional IRA, 401(k) and 403(b) withdrawals are taxed as ordinary income at California's regular rates, including CalPERS and CalSTRS pensions. Qualified Roth withdrawals are not taxed.
Is military retirement pay taxed in California?
Partly. For tax years 2025 through 2029, up to $20,000 of uniformed-services retirement pay is excluded from California income if federal AGI is $125,000 or less ($250,000 for joint filers). The rest is taxed as regular income.
Will I owe California tax if I retire to another state?
Generally no. Federal law (4 U.S.C. 114) bars states from taxing pension and retirement plan income of people who no longer live there. California taxes your retirement income only while you are a California resident.
What tax breaks do California seniors get?
An extra $153 senior exemption credit for each filer 65 or older (tax year 2025), the full Social Security exclusion, and property tax programs such as Prop 19 base-year transfers for homeowners 55 and older.
This tool provides an educational estimate of California income tax only and is not tax advice. It assumes the standard deduction and does not include itemized deductions, other credits or the taxable part of lump-sum distributions. Consult a tax professional or the FTB for your situation.