State retirement taxes · 2026
Does New York tax retirement income?
Short answer: Partly. New York does not tax Social Security benefits. Government pensions are fully exempt, and up to $20,000 per person of private pension or IRA income is excluded at 59½+.
What’s taxed in New York
2026 rules.
- Social SecurityNot taxed
- New York does not tax Social Security benefits.
- PensionsPartly taxed
- New York State, local and federal (including military) pensions are fully exempt; up to $20,000 of other pensions is excluded at 59½+.
- IRA & 401(k) withdrawalsPartly taxed
- IRA and 401(k) withdrawals share the same $20,000-per-person exclusion at 59½+; amounts above it are taxed.
- Military retirement payNot taxed
- Military retirement pay is fully exempt as a federal pension, at any age.
- Income tax rate10.9% top
- Nine brackets for 2026 from 3.9% to 10.9%.
Does New York tax Social Security?
New York does not tax Social Security benefits.
Social Security (and Tier 1 Railroad Retirement) included in federal AGI is fully subtracted, with no income or age limit.
Your federal return is a separate question — see how much of your benefit the IRS taxes with the taxable Social Security calculator.
Are pensions taxed in New York?
New York State, local and federal (including military) pensions are fully exempt; up to $20,000 of other pensions is excluded at 59½+.
Pensions from New York State or local governments and from the federal government, including the military, are fully exempt at any age. Private pensions and pensions from other states’ governments qualify for the pension and annuity exclusion: up to $20,000 per person if you are 59½ or older (prorated in the year you turn 59½). Each spouse gets their own $20,000; unused amounts can’t be transferred.
Public vs. private pensions: NY and federal government pensions: fully exempt. Private and out-of-state government pensions: $20,000 exclusion at 59½+.
Are IRA and 401(k) withdrawals taxed in New York?
IRA and 401(k) withdrawals share the same $20,000-per-person exclusion at 59½+; amounts above it are taxed.
Periodic and lump-sum IRA distributions and 401(k), 403(b) and 457 periodic payments qualify, except amounts from contributions made after retirement.
Required minimum distributions (RMDs) are IRA and 401(k) withdrawals, so the same rules apply. Estimate your RMD.
Is military retirement pay taxed in New York?
Military retirement pay is fully exempt as a federal pension, at any age.
What is New York’s income tax rate?
9 brackets, topping out at 10.9%.
Nine brackets for 2026 from 3.9% to 10.9%. The 5.4% rate runs to $80,650 of taxable income single ($161,550 joint) and 5.9% to $215,400 ($323,200 joint); the 9.65%–10.9% rates start above $1,077,550 single. New York City and Yonkers residents pay local income tax on top.
2026 brackets. Each rate applies to taxable income above the amount shown.
| Single | Married, joint | Rate |
|---|---|---|
| $0 | $0 | 3.9% |
| $8,500 | $17,150 | 4.4% |
| $11,700 | $23,600 | 5.15% |
| $13,900 | $27,900 | 5.4% |
| $80,650 | $161,550 | 5.9% |
| $215,400 | $323,200 | 6.85% |
| $1,077,550 | $2,155,350 | 9.65% |
| $5,000,000 | $5,000,000 | 10.3% |
| $25,000,000 | $25,000,000 | 10.9% |
Standard deduction and exemptions
Standard deduction (not indexed): $8,000 single or married filing separately, $11,200 head of household, $16,050 joint or surviving spouse. Dependent exemption: $1,000 each; no personal exemption for you or your spouse, and no extra standard deduction at 65+.
What tax breaks do seniors get in New York?
The $20,000 pension and annuity exclusion at 59½, the full exemption of NY and federal pensions, and the Social Security subtraction. New York starts from federal AGI, so the federal $6,000 senior deduction does not carry over. Real property tax credits and STAR are separate property-tax programs.
What changed for 2026?
The 2025 budget cut the bottom five rates by 0.1 point for 2026 and by another 0.1 point for 2027–2032, and kept the 9.65% / 10.3% / 10.9% top rates through 2032. We found no change to the $20,000 pension exclusion in the FY2027 budget (enacted May 2026).
2026 rates are official (IT-2105-I and Tax Law 601); retirement rules come from the 2025 IT-201 instructions.
How New York compares with its neighbors
Thinking of moving across the line? Here’s how each bordering state treats retirement income in 2026.
- New YorkThis pageVery friendlySocial Security Not taxedTop rate: 10.9% top
- ConnecticutMixedSocial Security Partly taxedTop rate: 6.99% top
- MassachusettsFriendlySocial Security Not taxedTop rate: 9% top
- New JerseyFriendlySocial Security Not taxedTop rate: 10.75% top
- PennsylvaniaVery friendlySocial Security Not taxedTop rate: 3.07% flat
- VermontLess friendlySocial Security Partly taxedTop rate: 8.75% top
State tax is half the picture — check the federal side
New York retirement tax questions
Is New York tax-friendly for retirees?
We rate New York “Very friendly” for 2026. New York does not tax Social Security benefits. Government pensions are fully exempt, and up to $20,000 per person of private pension or IRA income is excluded at 59½+. The top income tax rate is 10.9%.
Are required minimum distributions (RMDs) taxed in New York?
RMDs are withdrawals from IRAs and 401(k)-type plans, so they follow New York’s rules for those accounts. IRA and 401(k) withdrawals share the same $20,000-per-person exclusion at 59½+; amounts above it are taxed.
Is military retirement pay taxed in New York?
No. Military retirement pay is fully exempt as a federal pension, at any age.
What is New York’s income tax rate for 2026?
Nine brackets for 2026 from 3.9% to 10.9%. The 5.4% rate runs to $80,650 of taxable income single ($161,550 joint) and 5.9% to $215,400 ($323,200 joint); the 9.65%–10.9% rates start above $1,077,550 single. New York City and Yonkers residents pay local income tax on top.
Sources for New York
Primary sources only. We re-check them whenever an agency publishes new figures.
- State
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