Retirement planning for New York.
Graduated (4% – 10.9%). Start with your situation
Start with your situationNew York at a glance (2026)
- Top combined rate
- 49.68%
- State tax model
- Graduated
- Standard deduction
- $16,100
- RMD start age
- 73
New York income tax rates (2026)
| Rate | Taxable income (single) |
|---|---|
| 4% | up to $8,500 |
| 4.5% | $8,500 – $11,700 |
| 5.25% | $11,700 – $13,900 |
| 5.5% | $13,900 – $80,650 |
| 6% | $80,650 – $215,400 |
| 6.85% | $215,400 – $1,077,550 |
| 9.65% | $1,077,550 – $5,000,000 |
| 10.3% | $5,000,000 – $25,000,000 |
| 10.9% | over $25,000,000 |
State rates apply on top of federal rates (10-37%). Married filing jointly thresholds are typically 2x single.
New York retirement planning insights
- New York doesn't tax Social Security at the state level, and pensions from NY state/local government are also exempt, a big advantage for public-sector retirees
- NYC residents face an additional city income tax (3.078-3.876%) on top of state rates. Moving to Long Island or Westchester eliminates the city tax while staying in the metro area
- New York's $20K pension/annuity exclusion (age 59½+) shelters a meaningful amount of retirement income from state tax
- For high-net-worth retirees, New York's estate tax (with a cliff at 105% of the exemption) makes pre-retirement planning critical. Consider gifting or moving before estates approach the threshold
Frequently asked questions
Does New York tax retirement income?
New York does not tax Social Security benefits. It excludes the first $20,000 of pension/annuity income for residents age 59½+. 401(k) and IRA withdrawals above that exclusion are taxed at state rates (4-10.9%). NYC residents pay an additional 3.078-3.876% city tax.
Should I move out of New York for retirement?
If your retirement income will exceed ~$100,000/year from 401(k)/IRA withdrawals, the savings from moving to a no-tax state can be $5,000-20,000+ annually. cinder.fi can model your specific situation in both states to show the exact dollar difference.
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