Is Social Security Taxed in New York in 2026?
Is Social Security taxed in New York in 2026? No. Social Security is 100% exempt from New York State income tax. Other retirement income is taxed at progressive rates up to 10.9%, though retirees age 59½+ can exclude up to $20,000 in qualifying pension/annuity income under NY Tax Law § 612(c)(3-a). Property tax averages 1.30%.
Income thresholds shown adjust annually for inflation. Figures reflect the most recently available data — always confirm the current-year threshold with your state's Department of Revenue before filing.
Understanding New York's 2026 Retirement Tax Landscape
New York State completely exempts Social Security benefits from state and local income tax (deducted on Form IT-201). However, other retirement income is subject to New York's progressive tax brackets ranging from 4% to 10.9% (plus up to 3.876% in New York City local tax). Under official New York Tax Law § 612(c)(3-a) and Dept. of Taxation and Finance Publication 36, qualifying filers aged 59½ and older can exclude up to $20,000 per year of pension and annuity distributions from traditional retirement plans. New York property taxes average an effective 1.30%, though the School Tax Relief (STAR) program provides partial school property tax relief.
New York 2026 Retirement Tax Profile
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Compare With Other Major Retirement States
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Frequently Asked Questions (New York)
Is Social Security taxed in New York State?
No. New York State and New York City do not tax Social Security retirement benefits. You subtract federal taxable Social Security benefits on Form IT-201 Line 27.
What is New York's $20,000 pension exclusion for retirees?
Under official NY Tax Law § 612(c)(3-a) and NY Dept. of Taxation & Finance Publication 36, individuals aged 59½ or older can exclude up to $20,000 of qualifying pension and annuity income (including 401(k) and IRA distributions) from state taxable income each year.
Do New York City residents pay local tax on Social Security?
No. New York City adheres to New York State's tax treatment of Social Security, meaning NYC residents pay $0 city income tax on their Social Security benefits.