Pennsylvania retirement tax calculator

What Pennsylvania actually takes from a 401(k) withdrawal, a pension, and Social Security — in dollars, against the state’s own brackets and exclusions rather than a yes-or-no list.

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Retiring in Pennsylvania: What the State Actually Takes

  • On $95,000 of retirement income a single filer pays $0 in Pennsylvania state income tax, an effective rate of 0%.
  • The income tax, property tax and insurance together come to $6,465, which ranks Pennsylvania 17th of 50 on what retiring there actually costs.
  • Property tax runs about $4,420 a year on the state's $340,000 median home, and average home insurance $2,045.

On the ordinary retirement profile — $34,000 of Social Security and $61,000 of plan distributions — Pennsylvania takes $0 a year in state income tax.

That is the number people compare, and it is the smallest of three. Property tax adds about $4,420 on the state's $340,000 median home, and insurance another $2,045. The three together come to $6,465, placing Pennsylvania 17th of 50.

A note before you start. This is general education, not tax advice. Every Pennsylvania figure comes from this site's own fifty-state income-tax dataset and its retirement tax engine, computed for a single filer aged 70 unless stated otherwise; property tax, median home price and insurance figures come from the site's core state dataset. Rates are for tax year 2026. Property tax is assessed locally in most states, so the effective rate here is a statewide figure rather than your county's.

1. What Pennsylvania takes from retirement income

On Social Security. Pennsylvania does not tax Social Security, and the mechanism is structural rather than a deduction. Pennsylvania taxes eight enumerated classes of income and Social Security is in none of them; the Department of Revenue's PA Personal Income Tax Guide lists 'Social Security payments' and 'railroad retirement benefits' among income that is not taxable. There is no threshold, no age condition, and no phase-out, and the exemption does not depend on how much other income the taxpayer has — a Pennsylvania retiree with $500,000 of other income still pays nothing on benefits.

On 401(k) and IRA distributions. Exempt, but on conditions — and the conditions are the part every summary drops, so they are the substance of this entry. Pennsylvania does not tax distributions from an 'eligible Pennsylvania retirement plan' paid to a person who has retired after meeting the plan's age or years-of-service conditions. Two separate tests apply depending on the kind of plan. For an employer plan (401(k), 403(b), defined benefit), a distribution is exempt only if both (1) the plan is an eligible Pennsylvania retirement plan and (2) the taxpayer retired after meeting the plan's age conditions or years-of-service conditions. For a non-employer plan such as an IRA, where there are no plan-specific retirement criteria, the Department treats distributions as exempt retirement income 'so long as the taxpayer is not required to pay a penalty for early withdrawal' — for example after retirement, death, disability, separation from service, unforeseeable emergency, or attaining age 59 1/2. The early-distribution edge, stated exactly: distributions from an eligible Pennsylvania retirement plan taken before retirement age or before the years-of-service condition is met are taxable in the year received, but only to the extent they exceed previously taxed contributions, and they are deemed to come from those previously taxed contributions first under the cost recovery method.

Read the full Pennsylvania guide →19 min read · Updated 2026-09-03