Bill > A00259

This bill amends the New York State tax law to gradually increase the tax exemption for pensions and annuities for individuals who are fifty-nine and one-half years of age or older. Specifically, the bill raises the annual exemption from the current limit to $25,000 in 2027, $30,000 in 2028, $35,000 in 2029, and $40,000 for each subsequent year. The exemption applies to periodic payments from employer-employee relationships, retirement plans, individual retirement accounts, and self-employed retirement plans. The bill covers various types of retirement income, including distributions from retirement accounts, but excludes lump-sum distributions. For married couples filing joint tax returns, the exemption will be calculated as if they were filing separate returns. The law also ensures that if a retiree passes away, their beneficiary can still receive the pension or annuity with the same tax exemption. This change aims to provide additional tax relief for retirees by increasing the amount of pension and annuity income that is exempt from state income tax.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A259