Bill > A09527

This bill amends New York's tax law to make the first one hundred thousand dollars of an individual's private pension income non-taxable, meaning it will not be subject to state income tax. Previously, only twenty thousand dollars of such income was excluded, and this change removes the age requirement of fifty-nine and a half for receiving these pension benefits. The bill clarifies that this exclusion applies to periodic payments from employer-employee relationships or deductible retirement plan contributions, and it also covers payments to beneficiaries of deceased individuals. Importantly, lump sum distributions, which are typically one-time payments, will still be taxable. The bill also specifies that if spouses file a joint tax return, this pension exclusion will be calculated as if they were filing separately.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A9527