SLATER CALLS ON GOV. HOCHUL TO INCLUDE MAJOR SENIOR TAX RELIEF IN 2027 STATE BUDGET
With affordability and the rising cost of living continuing to squeeze New York families and seniors, Assemblyman Matt Slater (R,C-Yorktown) is calling on Gov. Kathy Hochul to include a major expansion of New York's retirement income tax exemption in her 2027 Executive Budget.
Slater has formally written to Gov. Hochul and Division of the Budget Director Blake Washington requesting that the state adopt the framework of his legislation, A.2017, which would gradually increase New York's private retirement income tax exemption from the current $20,000 to $100,000.
The current $20,000 exemption was established in 1981 and has not been increased in 45 years, despite decades of increases in housing, utilities, food, health care and other everyday expenses.
“New Yorkers are telling us loud and clear that affordability is the issue, and seniors living on fixed incomes are feeling it every day,” said Slater. “The cost of virtually everything has gone up since 1981, yet New York's retirement income tax exemption has remained frozen at $20,000. That makes absolutely no sense.”
Under Slater's proposal, the exemption would increase to $40,000 in 2027, $60,000 in 2028, $80,000 in 2029 and $100,000 in 2030, after which it would be indexed to inflation.
It is estimated that taxpayers affected by the current cap would see average annual state income tax savings of approximately $478 in the first year of the phase-in, growing to $2,150 annually once the exemption reaches $100,000 in 2030. Average cumulative savings for affected taxpayers are estimated to reach $5,173 by 2030 and $9,735 through 2032.
“This isn't an abstract tax policy. For an affected retiree, we're talking about an average of more than $2,100 a year when this is fully implemented,” Slater said. “That's money that can help pay a utility bill, cover groceries, pay property taxes or simply make it a little easier to stay in the community you have called home for decades.”
Slater said New York's outdated $20,000 exemption is increasingly out of step with neighboring states that have taken significant steps to reduce the tax burden on retirees.
Pennsylvania generally does not tax qualifying retirement income once a taxpayer meets the retirement requirements of an eligible plan.
New Jersey allows qualifying taxpayers with total income of $100,000 or less to exclude up to $100,000 for married couples filing jointly, $75,000 for single filers and $50,000 for married taxpayers filing separately. Partial pension exclusions are also available for qualifying taxpayers with total income between $100,001 and $150,000.
Connecticut allows qualifying taxpayers below specified income thresholds to deduct 100% of eligible pension and annuity income, with the benefit phasing out as income increases. Connecticut has also continued expanding its treatment of qualifying IRA distributions.
New York, by comparison, continues to provide most eligible retirees with an exclusion of only $20,000 the same amount established in 1981.
“We have watched New Yorkers leave this state year after year, and I hear from retirees all the time who tell me they are counting the days until they can join the exodus because they simply can't afford to stay here,” Slater said. “These are people who worked here, raised their families here, paid taxes here and want to stay close to their children and grandchildren. Albany should be asking what we can do to keep them here, not giving them another reason to leave.”
Slater said the issue is especially acute in the Hudson Valley, where seniors face high property taxes, housing costs, utility bills and other everyday expenses while neighboring states offer substantially more favorable treatment of retirement income.
“When a retiree leaves New York, we lose more than a taxpayer,” Slater continued. “We lose a grandparent helping raise the next generation, a volunteer supporting a local organization, a customer supporting our small businesses and someone who has spent decades investing in their community. Keeping seniors in New York is good for families, good for our communities and good for our economy.”
Slater said the proposal is part of a broader need for Albany to respond to voters' concerns about affordability with policies that produce measurable household savings.
Recent public opinion research has consistently demonstrated the intensity of voter concerns surrounding the cost of living, taxes, utility bills and the ability of families and retirees to continue calling New York home.
“Affordability can't just be a slogan,” Slater said. “People want to know what we're actually going to do about it. This is a concrete proposal that puts money back into the pockets of retirees and makes New York more competitive with the states around us.”
During the 2026 Legislative Session, Slater sought to bring A.2017 before the full Assembly for consideration. A motion to discharge the legislation from committee was defeated on April 21, and the bill was subsequently held for consideration in the Assembly Ways and Means Committee.
Slater is now asking the Hochul Administration to incorporate the proposal into the 2027 Executive Budget, allowing the first increase to take effect in Tax Year 2027.
“Our parents and grandparents worked for decades, raised families, built businesses, paid taxes and helped build the communities we call home,” Slater concluded. “They shouldn't have to spend their retirement planning an exit from New York. After 45 years, it's time to update this exemption, provide meaningful tax relief and give more seniors the ability to stay right here at home.”
Chair of the Yorktown Senior Advisory Committee Jennie Menton said, “I want to thank Assemblyman Slater for his dedication to protecting our seniors. Yorktown’s seniors are the backbone of our community, and they deserve the opportunity to enjoy their retirement without being pushed out of the state by rising costs and taxes.”
Patterson resident Peggy Burns said, “For those of us living on a fixed income, every dollar matters. Increasing that exemption would make a real difference for seniors like me and could help more people afford to stay in the communities they’ve called home for years. I appreciate Assemblyman Slater for listening to seniors and fighting to put meaningful tax relief on the table.”
Putnam Valley Senior Joe Di Salvo said, “Assemblyman Matt Slater’s push to raise New York’s retirement income exemption from $20,000 to $100,000 is long overdue. That number hasn’t changed since 1981, and it’s pushing retirees like me to consider leaving for states like New Jersey or Connecticut that already offer far better relief. I hope Gov. Hochul includes this in her 2027 budget. We worked hard our whole lives; we shouldn’t have to leave New York to afford retirement.”
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