New York tax deductions and write-offs (2026)

No. New York fully exempts U.S. military retired pay from state income tax. Other retirement income: Taxpayers 59½+ may exclude up to $20,000 per person of private pensions, annuities, and 401(k)/IRA distributions.

Partly. Taxpayers 59½+ may exclude up to $20,000 per person of private pensions, annuities, and 401(k)/IRA distributions. A 2025–26 bill to raise the $20,000 exclusion was not enacted.

No. New York subtracts all Social Security benefits included in federal AGI when figuring New York AGI. Statutory basis: Tax Law 612(c)(3-c).

Yes: New York offers the New York State Earned Income Credit, 30% of the federal EITC, reduced by any household credit (refundable). Fully refundable for full-year residents, partially refundable for part-year residents, nonrefundable for nonresidents. Valid SSNs required. Noncustodial parents paying child support can claim an alternative credit instead. New York City residents get a separate city EITC on top.

Only instead of income tax: itemizers in New York pick sales tax (4% state rate, about 8.54% with local taxes) or state income tax, whichever is bigger. Clothing and footwear under $110 per item is exempt from the 4% state tax, and also from local tax only where localities opt in (New York City does).

Yes on your federal return if you itemize, within the $40,400 SALT cap. New York adds its own break: Refundable real property tax credit (IT-214) up to $75, or $375 if 65+, for owners or renters with FAGI of $18,000 or less.

Yes: New York offers the Real Property Tax Credit (Form IT-214). Refundable credit for very low-income renters and homeowners, up to $75 or up to $375 if anyone in the household is 65+; claimed on Form IT-214, which can be filed even without an income tax return. Federal AGI of $18,000 or less; average monthly rent of $450 or less (excluding heat, utilities, furnishings, and board); full-year New York resident; same residence for at least six months; cannot be claimed as a dependent.

No: New York doesn't base registration on your car's value, so it isn't deductible as personal property tax. Two-year passenger fees run $26-$140 by unladen weight; county use taxes and the MCTD fee are flat or weight-based.

New York taxes income up to 10.9% (plus NYC tax for city residents), still allows itemized job expenses on the state return, and gives a 529 deduction up to $5,000 single / $10,000 joint.

Yes for state tax: New York residents deduct up to $5,000 ($10,000 joint) of NY 529 contributions.

Yes: Empire State Child Credit for 2026: $1,000 per child under 4 and $500 per child age 4-16. Reduced by $16.50 per $1,000 of federal AGI above $110,000 joint, $75,000 single/head of household, or $55,000 married filing separately. Refundable, with no minimum income. Full-year residents only.

Yes, as a business expense: New York charges $200 (plus publication: $50 Certificate of Publication + newspaper costs, within 120 days) to form an LLC; ongoing: $9 biennial statement. Annual filing fee (Form IT-204-LL) of $25-$4,500 based on prior-year NY-source gross income; $25 for a disregarded single-member LLC with NY income. Biennial statement due in the formation anniversary month every 2 years.