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2026 rules · verified against New York's primary source
New York fully exempts military retirement pay from state income tax.
Military pension payments are totally exempt from New York State, New York City, and Yonkers income taxes, with no age or dollar cap.
Treatment
fully exempt
Top marginal rate
10.90%
Source: https://www.tax.ny.gov/pit/file/military_page.htm · verified July 2026
Estimated New York state income tax on your military retirement, using the top marginal rate on the taxable portion (an upper bound; your effective rate is usually lower).
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