New York retirement income tax (2026)

How New York taxes retirement income

New York taxes income in 9 brackets for a married couple filing jointly, from 3.9% to 10.9%; the top rate starts at $25,000,000 of taxable income^[1]. For the example couple below, the last dollar of taxable income falls in the 3.9% bracket.

Before the rate applies, the simulator subtracts a standard deduction of $16,050 on a joint return ($8,025 single). It applies no personal exemption.

Social Security benefits are exempt from New York income tax: none of the benefit enters the state base, as in 22 of the 24 states covered here that tax income.

From age 60, each person can exclude up to $20,000 a year of IRA, 401(k) and pension distributions, so a couple can exclude up to $40,000 when each spouse has that much. In the worked examples the couple’s distributions are split evenly between the spouses, so each spouse’s cap applies to half.

Long-term capital gains and qualified dividends are taxed as ordinary income, at the same rates.

For single filers the simulator halves the joint deduction and exemption but keeps the joint bracket widths. Where New York’s real single brackets are narrower, that understates a single filer’s tax.

Put together, the example couple below owes $154 in New York, the 9th lowest of the 24 states covered here that tax income.

2026 brackets

Bracket thresholds are held at these values in every simulated year. The simulator does not index state amounts for inflation.

Worked example

A retired couple, both 67, filing jointly, with $48,000 of Social Security, $40,000 of IRA withdrawals and a $20,000 pension. The figures are computed when the page is built, by the same state-tax function the simulator runs.

The couple’s next $1,000 of IRA withdrawals would add $39 of New York tax.

A single retiree, 67, with half those amounts ($24,000 of Social Security, $20,000 of IRA withdrawals, a $10,000 pension) owes $77, 0.14% of gross income, against the couple’s 0.14%.

Age matters here: if both spouses were 58, below the exclusion age of 60, the same income would owe $2,041, which is $1,887 more than at 67.

As IRA withdrawals rise

The same couple, with Social Security and the pension unchanged, taking more from their IRAs (a larger withdrawal, a required minimum distribution or a Roth conversion all count as distributions here):

Neighbouring states

The example couple’s state tax in New York and in the neighbouring states covered here, same income and ages:

Against New York, the couple would pay more in New Jersey (+$847), Connecticut (+$966), Massachusetts (+$2,406); less in Pennsylvania (−$154). With $200,000 of IRA withdrawals instead of $40,000, they would owe $8,533 in New York, against New Jersey ($9,844), Pennsylvania ($0), Connecticut ($9,280), Massachusetts ($10,560).

What this page leaves out

What the simulator does and does not handle for New York, item by item^[1]:

• Tax year 2026 married filing jointly rate schedule (3.9%–10.9%: lower five rates cut for 2026, thresholds as in the 2025 IT-201), $16,050 married filing jointly standard deduction (2025 figure, 2026 not confirmed).
• Supplemental-tax recapture for AGI > $107,650 and NYC/Yonkers local taxes ignored.
• Social Security exempt.
• $20,000/person pension-and-annuity exclusion at 59½+ (modeled as 60+).
• Gains taxed as ordinary income.

In every state the simulator also leaves out credits, itemized deductions, deductions that phase out with income, local income taxes, surtaxes and any deduction for federal tax paid. It holds state amounts fixed and does not index them for inflation.

See it over a full plan

Related

• All 33 states compared
• State taxes in retirement: the exemptions that change the map
• The Social Security tax torpedo
• The RMD bomb: how pre-tax savings become forced income
• Roth ladder: how a Roth conversion ladder works
• Taxes in retirement: the topic guide
• Marginal-rate map (federal and state tax on the next dollar)