New York State Does Not Tax Social Security Income
New York State does not tax Social Security benefits. If Social Security is your only income source, you will not owe New York State income tax on those payments. This applies whether you receive retirement benefits, survivor benefits, or disability benefits through Social Security.
The federal government also does not tax Social Security benefits for most people. However, the IRS may tax a portion of your benefits if your combined income (adjusted gross income plus nontaxable interest plus half your Social Security benefits) exceeds certain thresholds. New York State has no such threshold — the state straightforward exempts all Social Security income from taxation.
This exemption is written into New York Tax Law Section 612, which specifically excludes Social Security benefits from taxable income. The exemption applies to all residents who receive Social Security, regardless of age or income level.
Key Takeaways
- New York State does not tax any portion of Social Security retirement, survivor, or disability benefits.
- You will not owe New York State income tax if Social Security is your only income.
- The federal government may tax part of your Social Security if your combined income is high enough, but New York State will not.
- If you have other income besides Social Security, you may still owe New York State tax on that other income.
- The exemption is permanent and applies to all residents receiving Social Security benefits.
What Counts as Combined Income for Federal Taxation
The federal tax treatment of Social Security is separate from New York State's treatment. The IRS uses a formula called "combined income" to determine whether your benefits are taxable at the federal level. Combined income includes your adjusted gross income, any nontaxable interest you earned, plus half of your Social Security benefits.
For 2024, if you are single and your combined income exceeds $25,000, the IRS may tax up to 50 percent of your benefits. If your combined income exceeds $34,000, up to 85 percent of your benefits may be taxable. For married couples filing jointly, the thresholds are $32,000 and $44,000. These thresholds have not changed since 1984.
Even if you owe federal tax on your Social Security, you will owe nothing to New York State. The state tax exemption is complete and does not depend on your income level or other sources of income.
Other Income You Receive Alongside Social Security
If you receive income other than Social Security — such as wages, pensions, interest, dividends, or rental income — New York State will tax that income. The state does not exempt non-Social Security income just because you also receive benefits.
For example, if you work part-time and earn $15,000 per year while also receiving $20,000 in Social Security, New York State will tax only the $15,000 in wages. The $20,000 in Social Security remains untaxed by the state. You may also owe federal income tax on the wages and possibly on a portion of the Social Security, depending on your combined income.
New York State has its own income tax brackets and rates. For 2024, the state tax rate ranges from 4 percent to 10.9 percent depending on your income level and filing status. You can find your specific tax rate on the New York Department of Taxation and Finance website.
Pensions and Retirement Income Other Than Social Security
New York State does tax most pension and retirement income, including distributions from IRAs, 401(k) plans, and traditional pensions. The state does not exempt these sources the way it does Social Security.
However, New York State does offer a limited exemption for certain military pensions and federal pensions. If you receive a pension from the U.S. military or certain federal government positions, you may be able to exclude a portion of that income. The rules for these exemptions are specific and depend on when you retired and your age at retirement.
If you are unsure whether your pension qualifies for an exemption, contact the New York Department of Taxation and Finance or consult a tax professional who works with New York residents.
How to Report Social Security on Your New York State Tax Return
You do not need to report Social Security benefits on your New York State tax return. When you file your New York State return (Form IT-201 or IT-201-D), you will not include Social Security income in your income calculation.
You will still receive a Social Security Benefit Statement (Form SSA-1099) from the Social Security Administration each January. This form shows the total benefits you received during the previous year. Keep this form for your records, but do not use it to calculate New York State tax.
If you file a federal return, you will report your Social Security on IRS Form 1040 and Schedule 1, even though New York State does not tax it. The federal and state tax systems are separate, and what you report to the IRS does not automatically transfer to your state return.
Supplemental Security Income (SSI) and New York State Taxes
Supplemental Security Income (SSI) is a different program from Social Security retirement, survivor, and disability benefits. SSI is a needs-based program for people with low income and limited resources. New York State does not tax SSI payments either.
Like Social Security, SSI is exempt from New York State income tax. You will not owe state tax on SSI payments regardless of your other income. However, SSI recipients often have very low income and may not be required to file a tax return at all.
If you receive both Social Security and SSI, neither amount is taxable by New York State. The exemption applies to both programs.
Frequently Asked Questions
Will I owe New York State tax if Social Security is my only income?
No. New York State does not tax Social Security benefits under any circumstances. If Social Security is your only income, you will not owe New York State income tax. You may still be required to file a federal return depending on your age and income level.
What if I have a pension and Social Security?
New York State will tax your pension income but not your Social Security. If you receive a military or federal pension, you may may have access to for a limited exemption on that pension income. Contact the New York Department of Taxation and Finance to determine whether your specific pension qualifies.
Do I need to report my Social Security on my New York State tax return?
No. You do not report Social Security benefits on your New York State return. You will report it on your federal return if you file one, but the state return does not include Social Security income in the calculation.
Can New York State tax me on Social Security if my income is very high?
No. New York State exempts all Social Security income from taxation regardless of how much other income you have. The federal government may tax part of your benefits if your combined income is high, but New York State will not.
Does the Social Security tax exemption explore to survivor benefits?
Yes. New York State does not tax Social Security retirement benefits, survivor benefits, or disability benefits. The exemption applies to all types of Social Security income.