Guide
How much tax will I pay on a Roth conversion?
By Secure Retirement PlannerUpdated
If you convert to a Roth, you pay ordinary income tax on it for the year you convert, at your regular federal rates. For 2026 those run from 10% to 37%. Your converted amount sits on top of your other income, so it is taxed at your highest rate. If you get Social Security, a conversion can also make more of your benefits taxable. That pushes your real cost above your bracket rate.
You pay no special conversion tax and no 10% penalty on the conversion itself. Any after-tax money (basis) in your IRAs comes out tax-free under the pro-rata rule.
This page shows you the 2026 brackets and how to estimate your bill. It also has a worked example where a 12% bracket retiree pays about 21% on her conversion.
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The short version
- Your conversion is added to your other 2026 income and taxed at your normal rates.
- If it fits inside your current bracket, each $10,000 converted costs $1,200 at 12% or $2,200 at 22%.
- If you get Social Security, each extra dollar of income can make up to 85 cents of benefits taxable too.
- If you're 65 or older, a conversion can shrink the new $6,000 senior deduction.
- Paying the tax from your savings, not from your IRA, keeps more of your money in the Roth.
How is a Roth conversion taxed?
The IRS treats your conversion like a withdrawal from your traditional IRA or 401(k). Whatever would have been taxable if you'd spent it is taxable when you convert it. It shows up on your Form 1040 as an IRA or pension distribution.
It does not get its own tax rate. It is simply more income for your year. If you once made after-tax (nondeductible) IRA contributions, part of your conversion is tax-free. Our guide to Roth conversion rules explains that pro-rata rule.
What tax bracket will my Roth conversion be taxed in?
It depends on your taxable income before you convert. Taxable income is your income after your standard deduction. Start at that number, then add your conversion. Each part of your conversion is taxed at the rate of the bracket it lands in.
Here are the 2026 federal brackets, with your tax on each $10,000 that falls inside each one.
| Rate | Single | Married filing jointly | Tax on each $10,000 converted in this bracket |
|---|---|---|---|
| 10% | $0 to $12,400 | $0 to $24,800 | $1,000 |
| 12% | $12,400 to $50,400 | $24,800 to $100,800 | $1,200 |
| 22% | $50,400 to $105,700 | $100,800 to $211,400 | $2,200 |
| 24% | $105,700 to $201,775 | $211,400 to $403,550 | $2,400 |
| 32% | $201,775 to $256,225 | $403,550 to $512,450 | $3,200 |
| 35% | $256,225 to $640,600 | $512,450 to $768,700 | $3,500 |
| 37% | Over $640,600 | Over $768,700 | $3,700 |
How do I estimate the tax on my Roth conversion?
Use your tax return from last year as your starting point. Adjust it for any changes in your 2026 income, like a new pension or the end of a job. Find your taxable income, then see how much room is left in your bracket.
Multiply your conversion by your bracket rate for a first estimate. Then check the side effects below, because they can add to your bill. Our Roth conversion tax calculator does this math with your own numbers.
Why can my real tax rate be higher than my bracket?
In retirement, your extra income can trigger other tax rules at the same time. When that happens, your conversion can cost you more than your bracket rate suggests.
- Social Security: add your other income to half your benefits. If that is over $25,000 (single) or $32,000 (joint), part of your benefits becomes taxable. Above $34,000 (single) or $44,000 (joint), each extra dollar can make 85 cents more taxable, up to 85% of your benefits. See Conversions and Social Security.
- Senior deduction: you get an extra $6,000 deduction for each person 65 or older (2025 to 2028). It shrinks by 6% of your income above $75,000 single or $150,000 joint. If you and your spouse both qualify, that is 12 cents lost per extra dollar.
- Capital gains: in 2026, your long-term gains and qualified dividends are taxed at 0% up to $49,450 of taxable income (single) or $98,900 (joint). A conversion can push your gains above that line, where they're taxed at 15%.
- Medicare: a 2026 conversion raises the income used for your 2028 Part B and Part D premiums. Check the surcharge lines with 2026 IRMAA brackets and checker.
Do I pay state income tax on a Roth conversion?
Usually yes, if your state has an income tax. Many states start from your federal income, so your conversion is included. If you live in a state with no broad income tax, such as Florida or Texas, it isn't taxed.
Some states exempt part or all of your retirement income. The rules differ on whether a conversion counts. Check your state revenue department, or our state guides, before you convert.
What is the best way to pay the tax on a Roth conversion?
Paying from your savings or a brokerage account is usually best. Your full amount reaches the Roth and keeps growing tax-free.
You can also have tax withheld from your conversion. IRA firms withhold 10% by default unless you choose a different rate, including 0%, on Form W-4R. Withheld money never reaches your Roth. If you're under 59½, it is also a withdrawal that can owe the 10% penalty.
If you pay in too little tax during the year, you may owe an underpayment penalty. If your conversion is larger, you may need an estimated tax payment. Or you can add withholding to your pension or IRA withdrawal.
A common approach
You can raise the withholding on your regular IRA withdrawal or pension late in the year. That can cover your December conversion. The IRS treats withholding as paid evenly through the year.
Example: a single retiree in the 12% bracket who pays about 21%
Joan is 67, single and retired. In 2026 she gets $30,000 of Social Security and takes $25,000 from her IRA. Before converting, only $9,600 of her benefits is taxable. She gets her $16,100 standard deduction, $2,050 extra for being 65 or older, and the $6,000 senior deduction. That leaves her taxable income at $10,450. Her federal tax is $1,045.
If she converts $20,000, her taxable income rises by $35,900, not $20,000. That's because the extra income makes another $15,900 of her Social Security taxable. Her federal tax goes up by $4,269. That's about 21% of the conversion, even though her top bracket is 12%.
At $30,000, her income passes $75,000 and the senior deduction starts to shrink. Some of the conversion also reaches the 22% bracket. Once her benefits are 85% taxable, each further dollar costs her bracket rate plus any senior deduction lost.
If you get Social Security and your bracket looks low, like Joan's, your true cost to convert may be well above your bracket rate. Run your own numbers before you decide how much to convert.
| Conversion | Taxable Social Security | Taxable income | Federal tax | Added tax | Added tax as % of conversion |
|---|---|---|---|---|---|
| $0 | $9,600 | $10,450 | $1,045 | $0 | 0% |
| $10,000 | $18,100 | $28,950 | $3,226 | $2,181 | 21.8% |
| $20,000 | $25,500 | $46,350 | $5,314 | $4,269 | 21.3% |
| $30,000 | $25,500 | $56,680 | about $7,182 | about $6,137 | 20.5% |
Hypothetical example using 2026 federal brackets and deductions (IRS Rev. Proc. 2025-32), the IRS Publication 915 method for taxable Social Security, and the Schedule 1-A senior deduction phase-out. It assumes no other income, no itemized deductions and no state tax. Your numbers will differ.
Common questions
Is a Roth conversion taxed as a capital gain?
No. It is taxed as ordinary income at your regular rates, even if the money in the IRA came from stock gains.
Do I pay the 10% early withdrawal penalty on a conversion?
No, as long as your full amount goes into the Roth. Tax withheld from your conversion when you're under 59½ can owe the penalty, because it didn't reach the Roth.
Can I spread the tax on one conversion over several years?
No. Your conversion is taxed in the year it's done. To spread your tax, split your conversion into smaller amounts over several years.
Does a Roth conversion count as income for Social Security?
Yes, for figuring how much of your benefits is taxable. More of your benefits can become taxable, up to 85%.
Will a Roth conversion raise my Medicare premiums?
It can, two years later. Medicare uses your income from two years earlier. So your 2026 conversion affects your 2028 premiums if it pushes you over a surcharge line.
Should I have taxes withheld from my Roth conversion?
Paying from your savings usually leaves more in your Roth. Withholding is simpler but shrinks your Roth. If you're under 59½, the withheld part can owe a 10% penalty.
Where do I report a conversion on my tax return?
On Form 1040 as an IRA distribution, using Form 8606, Part II, for conversions from an IRA. Your IRA firm sends Form 1099-R in January.
Sources
Facts on this page were last checked on November 9, 2026.
- IRS Rev. Proc. 2025-32 (2026 inflation adjustments) · 2026 brackets, standard deduction, extra deduction at 65, 0% capital gains thresholds. Read Nov 9, 2026.
- IRS Publication 915 (2025), Social Security and Equivalent Railroad Retirement Benefits · Base amounts ($25,000 single, $32,000 joint) and the method for taxable benefits. Read Nov 9, 2026.
- IRS Schedule 1-A (Form 1040), Additional Deductions · Senior deduction of $6,000, reduced by 6% of MAGI over $75,000 ($150,000 joint), per qualifying person. Read Nov 9, 2026.
- IRS Publication 590-A (2025), Contributions to IRAs · Conversion income rules and no 10% penalty on a timely conversion. Read Nov 9, 2026.
- IRS Form W-4R (2026) · 10% default withholding on nonperiodic IRA payments, 0% allowed. Read Nov 9, 2026.
- CMS: 2026 Medicare Parts A & B premiums and deductibles · IRMAA uses income from two years earlier. Read Nov 9, 2026.
Who wrote this
This guide was written and fact-checked by the Secure Retirement Planner editorial team using IRS, CMS and Social Security sources listed above. We update guides when the law or yearly limits change. How we research.