Does New York tax military retirement pay?
Not taxed
No. New York says military pension payments to retirees or their beneficiaries are totally exempt from state, New York City and Yonkers income taxes.
In the state's own words
Copied word for word from the official document linked below each quote:
“Military pension payments you receive as a retired military personnel or as their beneficiary are totally exempt from New York State, New York City, and Yonkers income taxes.”
Other retirement income in New York
Partly. Pensions from New York State, its local governments and the federal government are fully subtracted at any age. Other pensions, annuities and IRA withdrawals qualify for an exclusion of up to $20,000 per person from age 59½. The New York pension page has the details, and the New York Social Security page covers Social Security. No. The Social Security in your federal adjusted gross income is subtracted when you figure New York income.
Before you file or move
This page is about state income tax only. Your federal return has its own rules for military retired pay, and VA disability compensation is a separate benefit from retired pay. State rules change, and the details (age, years, which kinds of pay qualify, survivor benefits) matter. Check with the New York State Department of Taxation and Finance before you file or move.
Other states in the same group
Check our work
The answer above comes from this document. Follow the link and compare.
- Information for military personnel and veteransNew York State Department of Taxation and Finance. Read on November 13, 2026.