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New York Pension Tax Exemption 2025-2026

New York exempts pensions paid by New York State and local governments, and by the federal government from state income tax. Legislation in 2025-26 proposes raising the age-based subtraction for private pensions.

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Jan 17, 2026
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How do New York’s rules treat federal and state government pensions differently from private pensions?

New York exempts pensions paid by New York State and local governments, and by the federal government (including military), from state income tax, while private pensions and distributions from IRAs/40...

Feb 5, 2026

How does New York treat lump‑sum retirement distributions for the $20,000 exclusion?

permits residents age 59½ or older to exclude up to $20,000 of qualified pension and annuity income from their New York adjusted gross income, but that exclusion is limited to periodic (pre‑selected) ...