Does New York tax pensions and retirement income?
Taxed, with a retirement exclusion
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.
In the state's own words
Copied word for word from the official document linked below each quote:
“If you received a pension or other distribution from a New York State or local government pension plan or federal government pension plan, you may subtract the amount of distribution that was included in your federal adjusted gross income, regardless of your age or of the form the payment(s) take.”
“If you were age 59½ or older for the entire tax year, you may exclude up to $20,000 of your qualified pension and annuity income from your federal adjusted gross income for purposes of determining your New York adjusted gross income.”
And Social Security?
No. The Social Security in your federal adjusted gross income is subtracted when you figure New York income. The New York Social Security page quotes the rule.
Federal tax still applies
Whatever New York does, pensions, annuities and traditional IRA or 401(k) withdrawals are generally taxable on your federal return. See the federal tax brackets and, if you are 73 or older, the required minimum distribution calculator.
State rules change, and the details (age limits, income limits, which plans qualify) 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 retired personsNew York State Department of Taxation and Finance. Read on November 12, 2026.