Tax year 2026  ·  Reviewed October 7, 2026  ·  By Nazim Lokhandwala

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Printable checklist for your desk

Print this tax map, fill in your expected income by source, and bring it to your tax preparer.

Download the PDF (large print) Retirement income tax map  ·  Opens in any PDF viewer  ·  No sign-up needed

The short version. Different dollars of retirement income are taxed differently. Knowing which is which helps you see why two people with the same income can owe very different amounts.

Source by source

SourceHow it is generally taxed
Traditional IRA, 401(k), 403(b)Withdrawals are ordinary income, except any after-tax basis. A 10% additional tax may apply before 59½.
Roth IRA or Roth 401(k)Qualified withdrawals are tax-free (five-year rule plus age 59½, death, or disability). Otherwise, earnings are taxed.
PensionFully taxable if you did not contribute after-tax money. If you did, part of each payment is tax-free under the Simplified Method.
Social SecurityUp to 85% can be taxable, depending on other income.
WagesOrdinary income, plus Medicare tax, and an additional 0.9% above $200,000 (single) or $250,000 (joint).
InterestTaxable, except municipal bond interest, which is federally tax-free but still counts for Social Security, Medicare, and marketplace thresholds.
DividendsOrdinary dividends are ordinary income. Qualified dividends use the lower capital gains rates.
Long-term capital gains (held over a year)0%, 15%, or 20%, depending on taxable income.
Rental incomeTaxable, with deductions such as depreciation. Profits may also face the 3.8% net investment income tax.
HSAQualified medical withdrawals are tax-free. See our HSA guide.
Reverse mortgage proceedsThe IRS treats them as loan advances, not income.

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2026 brackets

Taxable income where each rate begins
RateSingleMarried filing jointly
10%$0$0
12%$12,400$24,800
22%$50,400$100,800
24%$105,700$211,400
32%$201,775$403,550
35%$256,225$512,450
37%$640,600$768,700

Standard deduction for 2026: $16,100 single, $32,200 married filing jointly, $24,150 head of household. Age 65 or older adds $1,650 ($2,050 if unmarried). The 2025 to 2028 senior deduction of $6,000 per person is separate. [9, 10]

2026 capital gains thresholds (taxable income)

RateSingleMarried filing jointly
0% up to$49,450$98,900
15% up to$545,500$613,700
20% above$545,500$613,700

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Ideas to explore with your tax professional

  • Which accounts you draw from first changes your bracket each year.
  • Tax-free sources, such as Roth withdrawals, do not count toward Social Security taxation or Medicare thresholds the way pre-tax withdrawals do.
  • A year with lower income may be a good year for gains or conversions. See our conversion guide.
  • Where thresholds cluster, a small change in income can have a large effect. See our AGI and MAGI guide.

Questions worth asking

  • What is my expected taxable income each year of retirement?
  • Which sources are most tax-efficient to use first, and which to preserve?
  • How do my tax-free and taxable sources interact with Social Security and Medicare?

Plan a conversation

Frequently asked questions

Are all retirement withdrawals taxed the same?

No. Traditional account withdrawals are ordinary income, qualified Roth withdrawals are tax-free, and Social Security can be up to 85% taxable depending on other income.

How are long-term capital gains taxed?

At 0%, 15%, or 20%, depending on taxable income, for assets held over a year.

Why can two people with the same income owe different tax?

Because different sources of income are taxed differently.

General education, not individualized investment, tax, or legal advice. Discuss tax decisions with your tax professional, and recheck annual limits before using this page for another tax year.

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