Retiring in New York: how your income is taxed
New York is fairly tax-friendly for retirees. On a typical retirement income it ranks #30 of 51 for the lowest state income tax.
The rules in New York
- Social Security: Social Security included in federal AGI is fully subtracted on the NY return, at any income level.
- Pensions: Private pensions and annuities: up to $20,000 per person is excluded at age 59½ and older, and 401(k)/IRA withdrawals count toward the same $20,000. New York State and local government and federal (including military) pensions are fully exempt at any age.
- 401(k), 403(b) and IRA withdrawals: 401(k) and IRA withdrawals count toward the same $20,000 pension and annuity exclusion at 59½ and older. Amounts above that are taxed at New York's regular rates.
Calculate your New York retirement taxes
State income tax in New York: $488 a year
In New York, the 401(k)/IRA amount counts as IRA withdrawals, which don't qualify for the pension exclusion. Enter withdrawals from employer plans such as a 401(k) or 403(b) as pension.
In New York you'd pay about $488 in state income tax and $4,336 in federal income tax on $70,000 of retirement income, keeping $65,176 (6.9% total).
New York ranks #30 of 51 for the lowest state tax on this income. 19 states charge no state income tax on this income.
What retirees pay in New York
| Retirement income | State tax (single) | State tax (married) | Federal tax (single) |
|---|---|---|---|
| $24,000 Social Security, $12,000 401(k)/IRA | $0 | $0 | $0 |
| $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA | $488 | $0 | $4,336 |
| $40,000 Social Security, $40,000 pension, $50,000 401(k)/IRA, $10,000 other income | $3,723 | $2,041 | $19,812 |
Age 67 or older, 2026 rules including the federal senior deduction. For married couples, income is the household total and both spouses are 67 or older. State estimates apply New York's main exclusions and may differ for income-tested credits.
States with lower retirement taxes
Moving to New York in retirement?
Compare the tax on your Social Security, pension and 401(k)/IRA income, and typical living costs, with the state you'd leave. These are the states most households moving to New York come from (IRS migration data, 2022–2023).
- New Jersey to New York
- Florida to New York
- California to New York
- Pennsylvania to New York
- Massachusetts to New York
- Connecticut to New York
Frequently asked questions
Does New York tax Social Security?
Not taxed. Social Security included in federal AGI is fully subtracted on the NY return, at any income level.
Does New York tax pensions?
Partly taxed. Private pensions and annuities: up to $20,000 per person is excluded at age 59½ and older, and 401(k)/IRA withdrawals count toward the same $20,000. New York State and local government and federal (including military) pensions are fully exempt at any age.
Does New York tax 401(k) and IRA withdrawals?
Partly taxed. 401(k) and IRA withdrawals count toward the same $20,000 pension and annuity exclusion at 59½ and older. Amounts above that are taxed at New York's regular rates.
Is New York a good state to retire for taxes?
For a single retiree with $30,000 Social Security, $20,000 pension, $20,000 401(k)/IRA, New York charges about $488 in state income tax, ranking #30 of 51 (lowest tax first).
Related
Sources: tax.ny.gov, nysenate.gov, kiplinger.com. Rules reviewed .