New York retirement taxes in 2026: what retirees pay

New York taxes income on a graduated scale, but retirees often find the state gentler than its reputation. Social Security benefits aren't taxed here at all. On top of that, each person who has reached the qualifying age can set aside a portion of their retirement income, such as pension payments or retirement account withdrawals, before the brackets apply. For a couple, that exclusion counts once for each spouse. What's left over is taxed under the regular brackets, the same way as other income. The examples below show how those pieces fit together.

New York retirement taxes at a glance (2026)

New York income tax rates for 2026

Single filers 1:

Married couples filing jointly 1:

Already in law for 2027: 9 brackets from 3.8% to 10.9% 1.

How New York treats retirement income

Each person 59½ or older may exclude up to $20,000 of retirement income. 3 (The age in the law is 59½. Monte Climb's tables count whole years and apply it from 60, which changes none of the examples here.) 3

What three retirees would pay in New York

These are estimates from Monte Climb's planner on 2026 law, for three example households. They start, as the app does, from federal taxable income: the 2026 standard deduction plus the extra amount at 65 4, the taxable part of Social Security 5 and the senior deduction 6. Those federal deductions are already taken off, and most states allow less of their own, so New York's real bill can be higher than shown.

• A single retiree, 67 with $54,000 of income would owe about $0 to New York, after $20,000 of retirement income is excluded and $11,300 of taxable Social Security is left out.
• A married couple, both 67 with $106,000 of income would owe about $0 to New York, after $40,000 of retirement income is excluded and $35,700 of taxable Social Security is left out.
• A married couple, both 62, before Social Security with $76,000 of income would owe about $148 to New York, after $40,000 of retirement income is excluded.

The same couple next door

The married couple, both 67, with $106,000 of income, in New York and the states around it:

Every figure here starts from federal taxable income, as above, so a state whose own deductions are smaller can tax more than shown.

What these estimates leave out

• New York's own standard deduction, exemptions and credits: the estimate starts from federal taxable income instead, which takes off the larger federal deductions.
• City income taxes, and capital gains rules a state applies apart from its rate.
• Rules for military and public-employee pensions that some states treat separately.

What this means for your plan

In New York, how much you owe depends on how your income is split. Social Security stays out of the state's reach, and the per-person exclusion covers a share of other retirement income. Anything above that goes through the brackets, so the size of your withdrawals and when you take them can change the result. Monte Climb runs these New York rules on your own plan, year by year, so you can see how the exclusion and the brackets play out with your real numbers.

Sources

1. New York income tax for 2026 (Monte Climb's audit grades it high)
2. New York: a further official source for the 2026 tables
3. New York's retirement-income rule: NY Tax Law §612(c)(3-a)
4. Rev. Proc. 2025-32 §4.14(1) and §4.14(3): the 2026 standard deduction and the additional amount at 65
5. IRC §86 and IRS Publication 915: how much of Social Security is taxable (thresholds set by statute, not indexed)
6. P.L. 119-21 (One Big Beautiful Bill Act) §70103: the $6,000 deduction for each person 65 or older, 2025–2028

Figures computed by code from Monte Climb's 2026 state tables (snapshot f024e17). An illustration, not tax advice.

Frequently asked questions

Does New York tax Social Security?

In 2026, Social Security is not taxed in New York.

What is New York's income tax rate in 2026?

New York has 9 brackets from 3.9% to 10.9% for 2026.

How much state tax would a retired couple pay in New York?

A married couple, both 67, with $106,000 of Social Security, pension and IRA income would owe about $0 to New York in 2026, by Monte Climb's estimate.