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Kiplinger
Kiplinger
Business
Kate Schubel

California Retirement Tax 2026: Is the 'Social Security Shield' Enough?

California Road sign with the state name and "The Golden State" against a blue sky .

Many California retirees may feel like they're living the dream: Mild, sunny weather, access to high-quality healthcare, and endless cultural activities. Though for most, high taxes remain a pain point.

Not only does the Golden State tax pension income, individual retirement account (IRA) distributions, and even some retirement military pay, but high housing costs and sales taxes may make retiring in California feel less affordable.

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