State retirement tax · New York
Retirement tax rules for New York residents (2026 guide)
New York's effective income-tax rate at retirement-bracket income is approximately 6.00%. Here's what it taxes, what it exempts, and how the worked numbers shake out.
Last reviewed July 17, 2026
Editorial review pending — see editorial process
Rate on retirement income
2.67%*
Taxes Social Security?
No
Approx. tax on $90k retirement income
$2,400
Pension carve-outs
Yes
*Effective rate for a single filer with $90k of income ($30k of it Social Security), after New York exempts Social Security and excludes the first $20,000 of retirement income per person. A retiree whose withdrawals stay under the exclusion owes about $0; a married couple excludes roughly twice as much. See the note below for the age rules.
New York's headline income-tax rate is about 6.00%, but retirees rarely pay it on their full income. New York excludes the first $20,000 of retirement income per person, and Social Security is fully exempt — so a retiree whose withdrawals stay under that exclusion owes close to $0, and one above it pays the rate only on the excess. A married couple can exclude roughly twice as much. The state note below has the age rules and exactly what qualifies.
What New York taxes (and what it doesn’t)
New York taxes 401(k)/IRA withdrawals and pension income at the state's rate — but only AFTER excluding the first $20,000 of retirement income per person, and Social Security is fully exempt. So a retiree whose taxable withdrawals fall under the exclusion pays $0 in state income tax; above it, the roughly 6.00% rate applies to the excess. Taxable brokerage, rental, and wage income don't qualify for the exclusion. See the state note for the age requirement and specifics.
State-specific note
New York excludes up to $20,000 of private pension/IRA/401(k) income PER PERSON at 59½+, and Social Security plus NYS/local/federal government pensions are FULLY exempt (no cap). A retiree on Social Security + a government pension often owes $0; private-plan income above $20k is taxed at graduated rates (~6% effective at retiree income).
A worked example
Worked example. A New York retiree with $60,000 of pension and IRA withdrawals plus $30,000 of Social Security: Social Security is exempt, and New York excludes the first $20,000 of retirement income per person — so only about $40,000 is taxed at roughly 6.00%, on the order of $2,400/year ($200/month). A married couple can exclude about twice as much, often owing $0.
Should you relocate?
New York's high effective rate is the most-cited reason retirees consider relocating. Before moving, model both your before-tax cost of living and the tax-bracket arbitrage carefully — a $15K/year tax saving can be eaten by a $1.5M home purchase in the destination market.
See how New York state tax shapes your retirement plan
The calculator's Taxes tab uses the 6.00% effective rate above and the SS-exemption flag automatically. Run your specific numbers and see the year-by-year tax forecast.
Run my numbersFrequently asked
Does New York tax my Social Security?
No. New York fully exempts Social Security benefits. You'll only owe state tax on other retirement income above the exclusion described below.
How much retirement income can I exclude in New York?
Up to $20,000 per person — about $40,000 for a married couple where both qualify. It covers pension and IRA/401(k) income; see the state note above for the age requirement and exactly what counts. Income above the exclusion is taxed at about 6.00%.
What's the effective state tax rate on my retirement income in New York?
Much lower than the headline rate for most retirees. On $90,000 of income (with $30,000 of it Social Security), a single filer would owe roughly $2,400 — an effective rate of about 2.67% — because Social Security is exempt and the first $20,000 of other retirement income is excluded. A retiree whose withdrawals stay under the exclusion owes $0.
Should I relocate to New York for retirement?
It depends on the size of your retirement income, the destination state, and your moving costs — the state-tax differential alone is rarely decisive for normal-income retirees. New York's exclusion already zeroes out state income tax for many retirees, so property and sales taxes are usually the numbers that actually differ between states.
Does this apply to property tax too?
No — this page covers state INCOME tax only. Property and sales taxes vary widely and property tax is set locally; check your county assessor for your own number.
Primary sources
Effective-rate and SS-taxation flags above are derived from these sources. We re-verify each annually.
Related reading
California retirement tax rules
Comparable effective rate on retirement income (6.00% vs 6.00%).
Arizona retirement tax rules
For perspective from a different tax tier.
Vermont retirement tax rules
An example of a state that DOES tax Social Security.
Run my numbers
The calculator's Taxes tab uses the same per-state effective rate.
How the Monte Carlo actually works
2,000-word methodology page — covers state tax modelling.