Bill > S05113

This bill amends the New York State tax law to expand and gradually increase the tax exemption for retirement income for individuals who are at least 59.5 years old. Currently, the exemption covers pensions and annuities, but the bill extends this to include other retirement plans. The exemption amount will be incrementally raised from $40,000 in 2027 to $100,000 in 2030, with subsequent annual adjustments based on the consumer price index (CPI) - a measure of the average change in prices paid by urban consumers for goods and services. The bill applies to periodic payments from employer-employee relationships or contributions to retirement plans that are tax-deductible, and specifically includes distributions from individual retirement accounts (IRAs), individual retirement annuities, and self-employed retirement plans. The exemption also covers payments received by a beneficiary if the original account holder has passed away. When spouses file a joint tax return, the exemption will be calculated as if they were filing separately. This change aims to provide greater tax relief for retirees by allowing them to exclude more of their retirement income from state income tax.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S5113