Pension Lump Sum Tax Calculator

Estimate the tax and withholding on a lump-sum pension payout, and what actually lands in your pocket.

Lump sum amount ($)The gross payout before tax Your federal tax rate (%)Your top marginal bracket, e.g. 22 or 24 Your state tax rate (%)0 if your state has no income tax

Mandatory 20% withheld now
Estimated federal tax
Estimated state tax
Net in your pocket
Still owed at tax time

Educational estimate only, not tax advice. Ignores bracket stacking, deductions, and early-withdrawal penalties. Consult a tax professional.

How it works

A lump-sum pension paid directly to you usually has a mandatory 20% federal withholding taken up front, but your actual tax depends on your bracket — the lump sum stacks on top of your other income and can push you higher. This estimates the federal and state tax, what's withheld now, and the gap you may still owe or get back at filing.

Rolling the lump sum directly into an IRA avoids the 20% withholding and defers the tax, keeping the whole amount working.

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Social Security Taxation → Guide: How SS Is Taxed → Net Worth → 401(k) Growth → Traditional IRA → 72(t) SEPP → FIRE Number → Guide: Tax on 401(k) Withdrawal → Guide: When Should You Retire → Fixed Annuity → Deferred Annuity → Annuity vs CD → Guide: Immediate Annuity Income → Guide: Should You Take a Buyout → Guide: SS Spousal Benefits → Guide: Pension COLA Raises → Guide: How Much to Retire → Guide: How a Lump Sum Is Calculated → Guide: Lump Sum vs Monthly → Guide: How to Calculate Your RMD → Guide: Early Withdrawal Penalty → Interest Rate Impact on Lump Sum → Early Retirement Reduction → Roth Conversion → Inherited IRA (10-Year Rule) → TSP (Thrift Savings Plan) → Cash Balance Pension → QDRO / Divorce Pension Value → Pension Lump Sum vs Monthly → Pension Buyout / Commuted Value → Pension Survivor Benefit → Pension COLA → Immediate Annuity Payout → Annuity vs Lump Sum → Annuity Present Value → How Long Savings Last → Withdrawal Rate → How Much to Retire → Income Gap → Inflation Impact → Social Security Break-Even → RMD (Required Minimum Distribution) → Social Security Spousal Benefit → Pension vs 401(k) Rollover → Early Withdrawal Penalty → Pension Maximization → 403(b) Retirement Calculator → 457(b) Retirement Calculator → Rule of 55 Calculator → Backdoor Roth IRA Calculator → Social Security Claiming Age Optimizer → Federal Pension (FERS) Calculator → Net Unrealized Appreciation (NUA) →