Question 1

Does New York tax Social Security benefits?

Accepted Answer

No — whatever amount of Social Security is taxable federally is subtracted in full on the New York return under §612(c)(3-c), regardless of income level. Federal taxation of benefits does not carry into New York. (Sources: Tax Law § 612; IT-201-I (2025 instructions).)

Question 2

Is my government pension taxed?

Accepted Answer

New York State and local government pensions, and federal government pensions (including military), are FULLY exempt under §612(c)(3) — no dollar cap. This covers NYSLRS, TRS, ERS and federal civil-service/military retirement. (Sources: Tax Law § 612.)

Question 3

What about private pensions, 401(k)s and IRAs?

Accepted Answer

Once you are 59½ or older, up to $20,000 per person per year of private pension, annuity, 401(k) and IRA distributions is excluded under §612(c)(3-a). Married couples can exclude up to $20,000 EACH from their own retirement income (the exclusion is per-taxpayer, not per-return, and cannot be shared). (Sources: Tax Law § 612; IT-201-I (2025 instructions).)

New York never taxes Social Security — and the first $20,000 of private retirement income can be free too.