HUDSON VALLEY- Assemblyman Matt Slater is urging Governor Kathy Hochul to include a major expansion of New York’s retirement income tax exemption in the state’s 2027 budget, saying the change could help seniors cope with rising living costs and remain in their communities.
Slater, a Yorktown Republican, has asked Hochul and Division of the Budget Director Blake Washington to adopt his legislation which would gradually increase the state’s $20,000 exemption on private retirement income to $100,000.
The current $20,000 exemption was established in 1981 and has not been increased since.
Under Slater’s proposal, the exemption would rise to $40,000 in 2027, $60,000 in 2028, $80,000 in 2029, and $100,000 in 2030. It would then be indexed to inflation.
Slater’s office estimates that affected taxpayers would save an average of about $478 in state income taxes during the first year of the phase-in, increasing to roughly $2,150 annually once the exemption reaches $100,000.
“This isn’t an abstract tax policy,” Slater said. “For an affected retiree, we’re talking about an average of more than $2,100 a year when this is fully implemented.”
Slater said the proposal is particularly important in the Hudson Valley, where retirees face high property taxes, housing costs, utility bills, and other expenses. He also pointed to neighboring states, including Pennsylvania, New Jersey, and Connecticut, which provide more generous tax treatment for certain types of retirement income.
The measure was introduced during the 2026 legislative session. A motion to bring the bill out of committee for consideration by the full Assembly was defeated April 21, and the legislation was subsequently held in the Assembly Ways and Means Committee.
Slater is now asking the Hochul administration to include the proposal in the 2027 Executive Budget, with the first increase taking effect for the 2027 tax year.
Local senior advocates have voiced support for the proposal.
Jennie Menton, chair of the Yorktown Senior Advisory Committee, said the change could help seniors remain in the community.
“Yorktown’s seniors are the backbone of our community,” Menton said, “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 an increased exemption could make a meaningful difference for people living on fixed incomes.
“For those of us living on a fixed income, every dollar matters,” Burns said.
Putnam Valley resident Joe Di Salvo also supported the proposal, saying the current exemption is outdated and that some retirees are considering moving to states with more favorable tax treatment.
Slater said the proposal is intended to provide what he called “concrete” relief to retirees while making New York more competitive with neighboring states.
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