Bill > S02571

This bill amends the New York State tax law to gradually increase the tax exemption for pensions and annuities for individuals aged fifty-nine and one-half or older. Specifically, the bill raises the tax-exempt amount from the current $20,000 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 also updates language to use "spouses" instead of "husband and wife" when filing joint tax returns. This change aims to provide additional tax relief for retirees by allowing them to exclude more of their pension and annuity income from state income tax, potentially helping seniors manage their financial burdens as they age. The bill will take effect immediately upon passage.

Government Affairs

https://www.nysenate.gov/legislation/bills/2025/S2571