Retirement Taxes in New York (2026)
New York taxes income at an effective 6.50%, exempts Social Security entirely, and exempts the first $20,000 of pension income. On our standard retiree profile it ranks 43 of 50 for total state tax burden at $15,772 a year, with property tax at an effective 1.57% and combined sales tax at 8.54%.
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New York at a glance
State income tax
6.50%
After a $8,000 standard deduction
Social Security
Fully exempt
State treatment only; federal rules still apply
401(k) / IRA withdrawals
First $20,000 exempt
Pension income
First $20,000 exempt
Effective property tax
1.57%
$7,830 on a $500,000 home
Combined sales tax
8.54%
State plus average local rate
Homeowners insurance
$1,628/yr
Average annual HO-3 premium
Cost index (goods & services)
105.5
US average = 100, BEA 2024. Housing excluded.
Estate / inheritance tax
Estate tax above $7,160,000
Cost index compares goods and services only — housing is excluded because it's captured separately in property tax. Source: BEA Regional Price Parities, 2024, US average = 100.
Rankings and dollar figures on this page use one documented profile: $126,000 of gross retirement income ($36,000 Social Security, $45,000 in 401(k)/IRA withdrawals, $18,000 pension, $12,000 dividends, $15,000 part-time earnings), a $650,000 home, and $32,000 of taxable annual spending. It is the same profile the calculator loads with, so you can reproduce every number here.
Where New York ranks
New York places 43 of 50 states by total state tax burden on the standard profile — $15,772 a year against a $10,910 50-state average, or 45% above the 50-state average.
- State income tax rate6.50%50% above the 50-state average
- Effective property tax rate1.57%73% above the 50-state average
- Combined sales tax rate8.54%28% above the 50-state average
- Homeowners insurance premium$1,628/yr9% above the 50-state average
- Cost of goods & services105.56% above the 50-state average
Comparisons are unweighted averages across the 50 states on our standard retiree profile, not population-weighted national figures.
How it compares to its peers
The states closest to New York on total burden, using the same profile:
Wisconsin
Rank 41 · $13,694/yr
$2,078 less than New York
California
Rank 42 · $15,357/yr
$415 less than New York
New Jersey
Rank 44 · $16,019/yr
$248 more than New York
New Jersey retirement taxesWhat this means for a move
On the standard profile, 65% of the $15,772 annual burden in New York is property tax — $10,179, against $2,860 of income tax and $2,733 of sales tax. Raising or lowering taxable withdrawals changes the 6.50% income tax line directly, so the total is sensitive to how much you draw each year.
Every $100,000 of home value costs $1,566 a year in New York property tax, so a $500,000 house carries roughly $7,830. Average homeowners insurance runs $1,628 a year, 9% above the 50-state average. Goods and services price 5.5% above the US average (BEA 2024, housing excluded), which sits on top of the tax figure rather than inside it.
This page covers income, property and sales tax while you're living. For what happens at death — exemptions, rates, and which heirs pay — read the full estate and inheritance detail for New York.
New York retirement tax FAQ
Does New York tax Social Security benefits?
No. New York does not tax Social Security benefits at the state level. Federal taxation of benefits still applies based on your combined income.
How does New York tax 401(k) withdrawals and pension income?
401(k) and IRA withdrawals: first $20,000 exempt. Pension income: first $20,000 exempt. Anything left over is taxed at an effective 6.50%.
What is the property tax rate in New York?
New York's effective property tax rate is 1.57% of home value — 73% above the 50-state average. On a $500,000 home that is about $7,830 a year.
Where does New York rank for retirement taxes?
New York ranks 43 of 50 states, lowest total burden first, on our standard retiree profile: $15,772 a year in combined state income, property and sales tax, versus a $10,910 unweighted average across the 50 states.
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