How much federal tax a 401(k) withdrawal costs in 2026
A pre-tax 401(k) or IRA payout is ordinary income: the 2026 standard deduction comes off first, then the brackets start at 10 %.
Federal tax on this withdrawal
$3,820
7.6 % of it.
| Income tax | $3,820 |
| 10 % additional tax | $0 |
| Top bracket reached | 12 % |
| Withheld at payout (20 %) | $10,000 |
Worked out by Radif Partners · How we calculate · figures read on irs.gov and healthcare.gov · not personal financial advice
Money taken from a traditional 401(k), 403(b), 457(b) or IRA is taxed as ordinary income in the year you receive it, at the same brackets as a salary. For 2026, Rev. Proc. 2025-32 sets the standard deduction at $16,100 for a single filer and $32,200 for a married couple filing jointly, then 10 % on the first $12,400 of taxable income for a single filer ($24,800 joint), 12 % up to $50,400 ($100,800 joint), then 22 %. A retiree with no other income who takes $50,000 pays $3,820 of federal tax, an average of 7.6 % although the top dollar is taxed at 12 %. Before 59½, unless an exception applies, the 10 % additional tax comes on top: the same $50,000 at 52 costs $8,820. The calculator above adds your other income and shows the bracket the withdrawal reaches.
The same withdrawal, different bills
What a withdrawal costs depends less on its size than on what else lands on the same return. In early retirement there is often no salary, so the first dollars fall into the standard deduction and the 10 % bracket. In the last year of work, the same withdrawal sits on top of a full salary and is taxed at the marginal rate of that salary. The table compares the federal tax on withdrawals of several sizes for a single filer and a married couple with no other income in 2026.
| Withdrawal | Single: tax | Single: average | Joint: tax | Joint: average |
|---|---|---|---|---|
| $20,000 | $390 | 2.0 % | $0 | 0.0 % |
| $40,000 | $2,620 | 6.6 % | $780 | 2.0 % |
| $60,000 | $5,020 | 8.4 % | $2,840 | 4.7 % |
| $80,000 | $8,770 | 11.0 % | $5,240 | 6.6 % |
| $120,000 | $17,570 | 14.6 % | $10,040 | 8.4 % |
For a couple, $80,000 of withdrawals costs $5,240: the joint deduction and the wider 10 % and 12 % brackets keep the average rate low. That is the arithmetic behind the advice, common in early retirement circles, to draw pre-tax money every year in modest amounts rather than in a few large ones.
Your withdrawal on top of other income
Federal tax on this withdrawal
$6,600
| Income tax | $6,600 |
| 10 % additional tax | $0 |
| Top bracket reached | 22 % |
| Withheld at payout (20 %) | $6,000 |
Marginal rate, average rate
The marginal rate is what the next dollar costs; the average rate is the whole bill divided by the withdrawal. They answer different questions. To decide whether to take an extra $10,000 this year or next, look at the marginal rate. To budget a year of spending, look at the average. Someone already earning $90,000 who takes $30,000 at 60 pays $6,600 on it, 22.0 %, because the whole amount falls in the 22 % bracket.
One big year or several small ones
Because the deduction and the low brackets come back every January, the timing of withdrawals changes the total bill. A single retiree who needs $120,000 over two years pays $17,570 by taking it all in one year, and $10,040 by taking $60,000 in each year: the second plan uses the deduction and the 10 % and 12 % brackets twice. The gap grows with the amount. The same logic explains why people who stop working at 50 often draw or convert a little pre-tax money every year from the start, instead of letting the 401(k) grow untouched until required distributions force large withdrawals in their seventies.
A lump-sum payout is the extreme case. Some plans pay a former employee only the whole balance; the full amount then lands on one return. Rolling it to an IRA by direct rollover keeps it untaxed until you withdraw it, at the cost, before 59½, of the rule of 55 on that money.
The brackets for 2026
| Rate | Single, taxable income over | Joint, taxable income over | Head of household, over |
|---|---|---|---|
| 10 % | $0 | $0 | $0 |
| 12 % | $12,400 | $24,800 | $17,700 |
| 22 % | $50,400 | $100,800 | $67,450 |
| 24 % | $105,700 | $211,400 | $105,700 |
| 32 % | $201,775 | $403,550 | $201,750 |
| 35 % | $256,225 | $512,450 | $256,200 |
| 37 % | $640,600 | $768,700 | $640,600 |
What is withheld is not what is owed
A 401(k) payout made to you rather than rolled over has 20 % withheld for federal tax (Publication 575). For a retiree with no salary the real bill is often well below that, and the difference comes back as a refund; for someone with a high salary it can be above, and the balance is due in April. The withholding calculator compares the two.
Before 59½: the 10 % comes on top
The additional tax is 10 % of the taxable amount and is not affected by the brackets. At 52, with no exception, $50,000 costs $3,820 of income tax plus $5,000 of additional tax. The exceptions that remove it (rule of 55, 72(t) payments, a governmental 457(b)) leave the income tax unchanged.
State tax, the other line
Most states tax the withdrawal again, a few exclude it by age, Illinois at any age, and California adds 2.5 % before 59½. The state comparison applies each rule we have read. The state that counts is the one where you live when you receive the money, which is why some early retirees move before their withdrawal years begin.
What this page leaves out
Credits, the alternative minimum tax and the 3.8 % net investment income tax are not modeled. Roth money withdrawn under the rules is not taxed at all, and long-term gains from a brokerage account follow their own 0 % and 15 % rates, explained on the 0 % capital gains page.