NOTE: If your only source of retirement income is Social Security, then most likely you will pay no taxes in retirement. If you have other sources of income, a portion of your Social Security income is likely to be taxed. The amount of tax is determined by a formula. The result of the formula is that you may have to include up to 85% of the Social Security benefits as taxable income on your tax return. The amount that is taxable (anywhere from zero to eighty-five percent) depends on how much other income you have in addition to Social Security. Retirees with almost no income other than Social Security will likely receive their benefits tax-free and pay no income taxes in retirement. Most withdrawals from retirement accounts are taxed in retirement. This means IRA withdrawals as well as withdrawals from 401(k) plans, 403(b) plans, 457 plans, etc., are reported on your tax return as taxable incomeMost people will pay some tax when they withdraw money from their IRA or other retirement plans.
The amount of tax you pay depends on the total amount of income and deductions you have and what tax bracket you are in for that year