Ready to Retire

Retirement income is not all taxed the same way — or the same in every state.

Enter Social Security, pension income and retirement withdrawals once. MFA estimates federal tax, then runs the same retirement-income mix through all 50 states so you can see how state treatment changes the result.

Build your retirement-income picture

years
years
$

Enter total household Social Security if filing jointly.

$

Use the taxable portion if part of the pension is a return of after-tax basis.

$
$

This field assumes the Roth distribution is qualified. Nonqualified Roth IRA distributions require contribution/conversion-basis ordering that is not inferred here.

Early-withdrawal additional-tax check

The regular income tax above is separate from the additional early-distribution tax.

No additional early-distribution tax modeled

Owner is at least age 59½, so the general early-distribution additional tax does not apply.

Common IRS exceptions to review
  • Death / beneficiary distribution
  • Total and permanent disability
  • Terminal illness exception
  • Substantially equal periodic payments (72(t)/SoSEPP)
  • Certain unreimbursed medical expenses
  • Qualified reservist / disaster / emergency exceptions where applicable
  • Qualified birth or adoption distribution (limit applies)
  • Domestic-abuse distribution (limit applies)
  • QDRO for a qualified employer plan (not an IRA)
  • IRA-only exceptions can include qualified higher education, first-home and certain unemployed health-insurance premiums
$

Examples: interest, wages, taxable annuity income or other ordinary income.

$

Municipal-bond interest can still affect whether Social Security is federally taxable.

2026 federal estimate

Annual cash income

$115,400

Regular federal income tax

$6,745

After federal tax + early tax

$108,655

Monthly after federal

$9,055

Social Security taxed federally$42,840 (85%)
Adjusted gross income$107,840
Standard + senior deductions$47,500
Federal taxable income$60,340
Early-distribution additional tax$0
Total federal tax modeled$6,745
Effective federal outflow on cash flow5.8%
Important: “85% of Social Security can be taxable” does not mean an 85% tax rate. It means up to 85% of the benefit can be included in taxable income, then normal tax brackets apply.
Retirement guides

Understand the retirement-income decisions behind the map.

Social Security timing, mandatory distributions, Medicare surcharges and IRA tax treatment can change the same retirement-income scenario in very different ways.

All MFA Guides
Interactive retirement tax map

Run this income across all 50 states

This is a retirement income-tax comparison. It does not rank property tax, sales tax, housing costs, health care or quality of life. Tap a state on the map or use the state selector.

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Selected state

New York

#19 of 50

Ranked by estimated state income tax for your retirement-income mix.

Total retirement income$115,400
Regular federal income tax$6,745
Early-distribution tax$0
State income tax$349
After federal + state$108,306
Monthly after both$9,026
Effective state rate on cash flow0.30%
Social Security

Social Security exempt

Pension

Partial retirement exclusion modeled

Traditional IRA / 401(k)

Partial retirement exclusion modeled

Model notes

Social Security exempt from state income tax in this model.

New York: up to $20,000 of qualifying pension/annuity income per taxpayer age 59½+ is modeled; government-pension exemptions can be more favorable.

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Lowest state income tax

Highest modeled state income tax

Retirement by ZIP

Add the local-tax layer.

ZIP resolves the city and state. MFA automatically models local retirement-income tax only where the rule is sufficiently clear, including New York City resident income tax and the Yonkers resident surcharge.

Local-tax rules are highly jurisdiction-specific. A $0 automatic result means “not automatically modeled,” not a guarantee that no local tax exists.

Enter a ZIP to add state + detected local retirement income tax to this same scenario.

Social Security

For 2026, most states exempt Social Security. Eight states can still tax benefits for some residents: Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont. MFA models their published age/income rules where practical.

Pension + Traditional accounts

Pension and IRA/401(k) rules vary dramatically. The map includes no-income-tax states, the nationally documented full exemptions, and several major age/income-based exclusions. Source-specific government and military pension rules can be more favorable.

Roth withdrawals

Qualified Roth withdrawals are modeled as spendable cash without federal or state ordinary-income tax. That can change both the federal result and which states look most attractive for your specific withdrawal mix.

How to read the state rank

The rank compares estimated state individual income tax on the retirement-income scenario you entered. It is not an overall retirement-state score. Property tax, sales tax, housing costs, estate/inheritance taxes, local income taxes, Medicare premiums, health-care access and lifestyle can easily change the broader decision.

The 2026 model uses Tax Foundation state rates/brackets, AARP's current national retirement-tax reviews, and selected official state retirement exclusions. Some states have pension-source, disability, military, public-safety, birth-year or other specialized rules that are not fully modeled. When a rule requires a state-specific worksheet, MFA uses a clearly labeled approximation rather than pretending the result is exact.

MFA Takeaway

Where you retire can change the tax result — but the income mix matters first.

A state that is excellent for pension income may be less special if most of your money comes from a Roth account. A state that normally taxes retirement withdrawals may still give a large age-based exclusion. Change the income mix and ages above and watch the map and ranks update.