State Income Tax
: 4% to 8.82% State Sales Tax
: 4% Estate Tax/Inheritance Tax
Although New York offers generous tax exemptions for retirees, the Empire State is home to some of the highest property taxes in the nation. On average, New Yorkers fork over 12% of their income in state and local taxes, according to the Tax Foundation. But retired residents catch several breaks. New York does not tax Social Security benefits or public pensions. There is also an exemption of up to $20,000 per person for private pensions and out-of-state government pensions. The state's top income tax rate of 8.82% is reserved for millionaires. Homeowners 65 and older may qualify for reduced property taxes, subject to income restrictions established by their local government. Although the statewide sales tax is a modest 4%, local taxes can boost the total to 9%, but food and prescription and nonprescription drugs are exempt.
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