Pennsylvania Retirement Income Tax 2025
See how Pennsylvania treats Social Security, private pensions, annuities, and IRA distributions for a full-year resident, then run the official-source estimate with your own income.
Social Security
Social Security payments are not taxable as Pennsylvania compensation.
Pension and IRA income
Eligible retirement-plan distributions after the plan retirement age are generally exempt; an IRA commonly qualifies at age 59½ when no early-withdrawal penalty applies.
Estimated 2025 state tax
$461Resident return; local taxes and unmodeled credits excluded.
Modeled state taxable income
$15,000Retirement-income subtraction
$65,000Social Security payments are not taxable as Pennsylvania compensation.
Eligible retirement-plan distributions after the plan retirement age are generally exempt; an IRA commonly qualifies at age 59½ when no early-withdrawal penalty applies.
Scope: The calculator uses age 59½ as a proxy for eligible private pension and IRA distributions. Employer-plan retirement criteria, disability, death, early distributions, previously taxed contributions, and commercial annuity cost recovery require the Pennsylvania instructions.
Pennsylvania worked example
For a single filer age 68 with $80,000 of federal AGI, including $15,000 of federally taxable Social Security, $30,000 of pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income:
Retirement subtraction
$65,000
Modeled state taxable income
$15,000
Estimated 2025 state tax
$461
This is an illustration, not a tax return. Local taxes, credits, and unmodeled state adjustments are excluded.
What this model does not include
The calculator uses age 59½ as a proxy for eligible private pension and IRA distributions. Employer-plan retirement criteria, disability, death, early distributions, previously taxed contributions, and commercial annuity cost recovery require the Pennsylvania instructions. Review the official instructions before filing.
Review the full Pennsylvania income tax guide →Pennsylvania retirement income tax FAQs
Does Pennsylvania tax Social Security benefits in 2025?
Social Security payments are not taxable as Pennsylvania compensation.
Does Pennsylvania tax pensions and IRA withdrawals?
Eligible retirement-plan distributions after the plan retirement age are generally exempt; an IRA commonly qualifies at age 59½ when no early-withdrawal penalty applies.
What does the Pennsylvania retirement tax example include?
The example uses a single filer age 68 with $80,000 of federal AGI, $15,000 of federally taxable Social Security, $30,000 of private pension income, $20,000 of IRA distributions, and $15,000 of other state-taxable income.
Is this a complete Pennsylvania resident return?
No. The estimate focuses on retirement-income treatment and the state rate schedule. It excludes local income tax and does not reproduce every deduction, credit, addition, subtraction, or special pension rule. The calculator uses age 59½ as a proxy for eligible private pension and IRA distributions. Employer-plan retirement criteria, disability, death, early distributions, previously taxed contributions, and commercial annuity cost recovery require the Pennsylvania instructions.
Sources
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