Retirement Tax
Calculator
Federal + state income tax + Medicare IRMAA surcharges — all in one number. See what retirement actually costs by state at your income.
Your retirement income
Portfolio & Life
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
PA: Great retirement state but 4.5% inheritance tax to children from dollar one. Your heirs will owe this.
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
State tax
None
Federal
$7K
SS: 85% taxed
Medicare
$4K
Base
Total/yr
$12K
Take home
$7,529/mo
Years
11.1
Withdrawal Order Strategy
Alabama: SS Is State Tax-Free
Maximize SS, Delay IRA
Social Security is state tax-free here. Maximize SS income and delay IRA withdrawals to reduce state taxable income in high-income years. Consider Roth conversions in low-income years.
Roth Conversion Window
Convert traditional IRA to Roth before age 63. Roth distributions don't count toward MAGI or IRMAA. Low-income years between retirement and RMDs are the ideal window.
IRMAA Lookback Rule
IRMAA is based on income 2 years prior. Plan large IRA distributions now for 2026. A one-time spike can cost $1,400-$5,000 extra per year in Medicare premiums.
Strategies reflect the top-ranked state for your current income profile. Sequence changes as withdrawals shift your MAGI. Consult a tax professional before large Roth conversions or distribution changes.
What is IRMAA?
IRMAA stands for Income-Related Monthly Adjustment Amount.It's a Medicare surcharge that most people never hear about until it hits them.
Everyone on Medicare pays a base Part B premium (~$175/mo in 2024). But if your income exceeds certain thresholds, Medicare charges you extra — on top of that base. A lot extra. Up to $420/mo more per person at the highest tier.
For a married couple both on Medicare at the highest tier, that's $10,000/year in extra premiums — on top of regular Medicare costs.
The 2024 IRMAA tiers (single filer)
Married thresholds are double these amounts.
The Cliff Problem
IRMAA tiers are cliffs, not ramps. One extra dollar of income can jump you to the next tier and cost $840–$2,400 more per year. This is why careful IRA withdrawal planning matters so much in retirement.
It Uses 2-Year-Old Income
Medicare looks at your tax return from 2 years ago to set your premium. A one-time income spike (selling a house, large IRA withdrawal) can hit you 2 years later. Plan large distributions carefully.
How to Reduce It
Roth conversions before 63 avoid future IRMAA. Qualified Charitable Distributions (QCDs) from IRAs don't count toward MAGI. Municipal bond income doesn't count. Strategic withdrawal sequencing matters enormously.
Want the full breakdown? Read our guide on IRMAA and how to avoid the cliffs.
Read the guide →How this works: Federal income tax uses 2024 brackets with standard deduction (including age 65+ addition). Capital gains use preferential 0%/15%/20% LTCG rates, stacked on top of ordinary income. NIIT (3.8%) applied on investment income above $250K (married) / $200K (single). Roth withdrawals are excluded from AGI and IRMAA MAGI — tax-free. SS taxation uses the provisional income formula — up to 85% may be federally taxable. State income tax uses actual bracket data at your income level. Medicare IRMAA uses 2024 CMS tables. IRMAA is based on income from 2 years prior. Portfolio longevity assumes level monthly spending equal to net take-home. Does not include property tax, sales tax, or long-term care costs. Not financial advice — consult a tax professional.