How much tax will I pay if I convert my IRA to a Roth?

The amount of tax you pay on a Roth IRA conversion depends on your total income for the year and your marginal federal (and state) income tax rates, because the converted amount is treated as ordinary income.

How the Tax Is Calculated

The IRS adds the taxable portion of your conversion to your other income for that year. If your traditional IRA consists entirely of pre-tax contributions and earnings, 100% of the converted amount is taxable. If you have made nondeductible (after-tax) contributions to any traditional IRA, the IRS pro-rata rule applies across all your IRAs to determine what portion is taxable.

Once the taxable amount is established, it is stacked on top of your wages, Social Security, pensions, and other income. The result is taxed at your ordinary federal income tax brackets (10%, 12%, 22%, 24%, 32%, 35%, or 37% in 2026). A Roth conversion is not a capital gain and carries no special conversion rate. Importantly, a properly executed conversion is also not subject to the 10% early withdrawal penalty, even if you are under age 59½.

Other Factors That Affect Your Total Tax Bill

Beyond the straightforward bracket calculation, a large conversion can trigger additional costs worth planning around:

Pushing income into a higher federal bracket, so part of the conversion is taxed at a rate above your baseline
Medicare IRMAA surcharges, which increase Part B and D premiums when your modified adjusted gross income crosses certain thresholds
Phaseout of deductions and credits tied to adjusted gross income
State income tax, since many states treat the conversion as ordinary income as well

Because the year you convert matters significantly, running the numbers before you act is worth the effort. You can get a quick estimate with our IRA Conversion Tax Calculator, and if your IRA holds privately held assets such as LLC interests or private company shares, visit our Roth IRA Conversion Appraisal page to learn how a qualified Fair Market Value appraisal establishes the correct taxable amount for your conversion.