Tool · Investor Sam Retirement

Retirement Tax-Bracket Planner

July 1, 2026 • By the Investor Sam Editorial Team • Reviewed by Berly Sam Varghese, Editor
Retirees often assume they will pay less tax than during their working years — and are blindsided when RMDs, SS taxability, and capital gains push them into the 22% or 24% bracket. This planner assembles all your retirement income sources, applies 2025 federal tax rules (including SS taxability), and shows your real effective rate and after-tax income so you can plan Roth conversions, QCDs, and withdrawal sequencing proactively.

Example: Annual Social Security benefit: 24000 $ · Annual pension income: 0 $ · Annual traditional IRA/401(k) withdrawal: 36000 $ · Annual Roth withdrawal (tax-free): 10000 $ · Annual long-term capital gains/dividends: 5000 $ · Filing status (0=single, 1=married): 0

After-tax annual income$70,174
Estimated federal income tax$4,826
Effective federal tax rate6.40%
Taxable portion of Social Security$16,150

Worked example

A single retiree with $24,000 SS, $36,000 traditional IRA draw, $10,000 Roth, and $5,000 capital gains: combined income is $47,000, exceeding the $34,000 SS threshold. About $11,050 of SS becomes taxable. Gross taxable income after the $15,000 standard deduction is roughly $23,050. Federal tax is approximately $2,543 — a 3.4% effective rate on $75,000 total income, with $72,457 after-tax.

Frequently asked questions

How much of my Social Security is taxable?

Up to 85% of SS benefits are taxable if your combined income (AGI + nontaxable interest + half of SS) exceeds $34,000 for singles or $44,000 for married couples filing jointly. Below those thresholds, 0–50% is taxable. This tool applies the 85% threshold rule for combined income above the upper limit.

Does Roth income count toward SS taxability?

Roth qualified distributions are not included in your AGI and do not count as combined income for SS taxability purposes. This makes Roth withdrawals uniquely tax-efficient in retirement — they are tax-free AND do not trigger additional SS taxation.

What is a Qualified Charitable Distribution and how does it reduce tax?

A QCD allows IRA owners age 70½+ to transfer up to $105,000/year (2025) directly to a qualified charity. It satisfies RMD requirements but is excluded from AGI — directly reducing your combined income and potentially dropping you below the SS taxability thresholds.

Should I do Roth conversions before RMDs kick in?

Many financial planners recommend Roth conversions in the years between retirement and RMD start age (73) when income is lower. Converting enough to fill the 12% or 22% bracket each year reduces future RMD-driven income, lowers SS taxability, and builds a tax-free inheritance for heirs.

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Sources

Berly Sam Varghese · Editor, Investor Sam

Berly Sam Varghese is an engineer who treats money the way he treats any hard problem — something to be engineered, not gambled on. He funded years of education and built real financial stability the patient way, by living below his means and investing rather than borrowing. He writes for the person afraid they started saving too late. He reviews and approves every article on Investor Sam and checks the figures against primary sources before anything is published. More about our standards.