Does Pennsylvania tax pensions and retirement income?
Most retirement income not taxed
No. Pennsylvania does not tax commonly recognized pension and retirement benefits paid after you are eligible to retire and have retired. Early distributions are taxable.
In the state's own words
Copied word for word from the official document linked below each quote:
“Commonly recognized pension, old age, or retirement benefits paid after becoming eligible to retire, and retiring”
And Social Security?
No. Pennsylvania lists Social Security as income that is not taxable for its personal income tax. The Pennsylvania Social Security page quotes the rule.
Federal tax still applies
Whatever Pennsylvania does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) matter. Check with the Pennsylvania Department of Revenue before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- 2025 PA-40 Personal Income Tax Return InstructionsPennsylvania Department of Revenue. Read on November 12, 2026.