Retirement taxes by state
How California taxes retirement income in 2026
California's income tax rates run from 1% to 13.3%. Here's how California treats Social Security, retirement-account withdrawals, pensions and Roth conversions in 2026 — and what that means in dollars: a retired couple, both 67, with $98,000 of income pays nothing in California income tax.
Updated October 2026 · 2026 tax year
California at a glance
- Income tax from 1% to 13.3%.
- Social Security isn't taxed.
- Extra $153 tax credit per person from age 65.
California retirement tax questions
Does California tax Social Security?
No. Social Security isn't taxed.
Does California tax 401(k) and IRA withdrawals?
Yes, at the state's regular income tax rates. California has no special exclusion for retirement-account withdrawals. Also: extra $153 tax credit per person from age 65.
Does California tax pensions?
Yes, at the state's regular income tax rates. California has no special pension exclusion.
Does California tax Roth conversions?
Yes. A Roth conversion counts as income in California in the year you convert, taxed at the state's regular rates. Qualified Roth withdrawals later aren't taxed.
What is California's income tax rate in 2026?
California's income tax rates run from 1% to 13.3%.
What retirees actually pay in California: three examples
Calculated with Retirology's tax engine under 2026 law, using each state's standard deduction, its retirement breaks and the 2026 federal rules for how much Social Security is taxable. That couple would owe nothing in California — one of 24 states (counting DC) where they'd pay $0.
| Household | Total income | California tax | Share |
|---|---|---|---|
| Retired couple, both 67 $48,000 of Social Security, $40,000 drawn from IRAs and 401(k)s, and $10,000 of qualified dividends | $98,000 | $0 | 0.0% |
| Single retiree, 70 $30,000 of Social Security, a $25,000 pension and $15,000 of IRA withdrawals | $70,000 | $436 | 0.6% |
| Early-retired couple, both 56, converting to Roth A $60,000 Roth conversion and $20,000 of long-term gains and qualified dividends, living on savings | $80,000 | $1,179 | 1.5% |
State income tax only — before local taxes, property tax relief and credits not listed above. Federal income tax is extra and the same in every state.
California income tax brackets (2026)
Rates apply to California taxable income, after the state's deductions and the retirement breaks above. Brackets are adjusted for inflation each year.
| Single | Rate | Married filing jointly | Rate |
|---|---|---|---|
| Up to $11,079 | 1% | Up to $22,158 | 1% |
| $11,079 – $26,264 | 2% | $22,158 – $52,528 | 2% |
| $26,264 – $41,452 | 4% | $52,528 – $82,904 | 4% |
| $41,452 – $57,542 | 6% | $82,904 – $115,084 | 6% |
| $57,542 – $72,724 | 8% | $115,084 – $145,448 | 8% |
| $72,724 – $371,479 | 9.3% | $145,448 – $742,958 | 9.3% |
| $371,479 – $445,771 | 10.3% | $742,958 – $891,542 | 10.3% |
| $445,771 – $742,953 | 11.3% | $891,542 – $1,000,000 | 11.3% |
| $742,953 – $1,000,000 | 12.3% | $1,000,000 – $1,485,906 | 12.3% |
| Over $1,000,000 | 13.3% | Over $1,485,906 | 13.3% |
Details and limits
2025 indexed brackets (2026 not yet published). Includes the 1% Mental Health Services Tax over $1M (shown as the 12.3%/13.3% steps). Retirement income is fully taxable.
Sources
Rates and rules for the 2026 tax year, from Retirology's state tax data (reviewed October 2026):
This page explains state tax rules in general terms. It isn't tax advice — check your state's official instructions or a tax professional for your situation.