CA · Tax Year 2026
How California taxes Social Security, pensions, 401(k)/IRA withdrawals, and military retirement pay in 2026.
No general retirement exclusion; military retirement exclusion up to $20,000
Military exclusion has no age requirement
Additional Notes
Military exclusion subject to income limits of $125,000 single/HOH and $250,000 joint
Does California tax Social Security benefits?
No. California does not tax Social Security retirement benefits.
Does California tax pension income?
Yes. California generally taxes pension income, though some credits or deductions may apply.
Does California tax 401(k) and IRA withdrawals?
Yes, traditional 401(k) and IRA withdrawals are generally taxable in California. However, exclusions or credits may apply depending on your age and income — review the details above.
Is California a tax-friendly state for retirees?
It depends on your income mix. California offers some retirement income relief, but the rules vary by income type and eligibility. Review the details above and consider consulting a tax professional for your specific situation.
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Data Source
Official California state tax authority guidance. Tax year 2026. Some annually indexed thresholds may not yet be finalized — confirm with the state revenue department before filing.
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Data reflects tax year 2026 rules sourced from official California state tax authorities. This page is for informational purposes only — always confirm current rules with the state revenue department or a qualified tax professional before making financial or relocation decisions.