Did you retire early last year? If so, congratulations.

You probably worked hard for many years so that you could begin the next phase of your life earlier than most people do. But before you head for the golf course or get on that cruise ship, below are some taxes you should know about.

Also here are tax tips for you to keep more of your money.

Read This: How Boomers Can Claim a $6,000 Extra Deduction This Year 

See Next: 9 Low-Effort Ways To Make Passive Income (You Can Start This Week) 

You’ll pay federal income taxes — and state income taxes if you live in a state that levies them — as long as you have income, regardless of your employment status. In retirement, distributions from your qualified retirement accounts are taxed as income, so you’ll pay taxes on those.

One thing some early retirees are surprised by is the amount of income tax they are liable for when they leave the office for the last time. Your exit from the workplace can come with a little boost of income, from things like accrued vacation time or stock options.

Here’s another thing that can come as a surprise to the newly retired: If you took out a loan against your 401(k) and you leave your job before the loan is fully paid back, any remaining balance will be considered a taxable distribution, per the IRS. So that $5,000 loan balance is treated like income to you and is taxed as such.

Check Out: Maximize Your Tax Refund by Avoiding This Common Mistake 

If you have income from investments that exceeds your investment losses, you may be subject to a 3.8% Net Investment Income Tax (NIIT). Net investment income includes capital gains, interest, dividends, passive income like rental and royalty income and nonqualified annuities. It doesn’t include Social Security benefits, employment income, alimony or unemployment compensation, nor does it include the gain on the sale of your primary residence.

The NIIT is levied on the amount of your net investment income. Or if your MAGI is above the following amounts:

$200,000 if you’re single or head of household

$125,000 if you’re married filing separately

$250,000 and you’re married filing jointly or a qualifying widow(er) with a child

It may be based on the amount of income above those amounts, if that amount is less than your net investment income. In other words, it’s the lesser of your net investment income or the amount of your MAGI that’s greater than the amounts listed, according to the IRS.

There’s another tax that some retirees will have to understand if it applies to them. Per the IRS, the Additional Medicare Tax is a tax of 0.9% that applies to railroad retirement (RRTA) compensation, as well as Medicare wages and self-employment income, that exceeds the following thresholds:

$200,000 if you’re single or head of household

$125,000 if you’re married filing separately

$250,000 and you’re married filing jointly or a qualifying widow(er) with a child

Retirement can be a time of less worry and stress, but there will always be taxes. Knowing what they might be ahead of time can make them a little easier to manage.

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This article originally appeared on GOBankingRates.com: If You Retired Early in 2025, What Taxes Do You Have To Worry About?