Bill > A02017

This bill amends the New York State tax law to expand the pension and annuity tax exemption for individuals who have reached the age of 59.5 years old. Currently, such individuals can exclude a certain amount of pension income from their state taxes, and this bill gradually increases that exemption amount from $20,000 to $100,000 over several years, starting in 2027. Specifically, the exemption will rise to $40,000 in 2027, $60,000 in 2028, $80,000 in 2029, and $100,000 in 2030. Additionally, the bill introduces an annual adjustment mechanism tied to the consumer price index, which means the exemption amount will be automatically increased each year based on inflation, as measured by the U.S. Department of Labor's consumer price index for urban consumers. The bill also expands the definition of exempt income to explicitly include "other retirement plans" and updates language to use gender-neutral terms like "their" instead of "his". The changes apply to individuals receiving periodic payments from employer-employee relationships, retirement plan contributions, individual retirement accounts, and self-employed retirement plans, though lump-sum distributions remain excluded from the exemption.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A2017