On the other hand, New York excludes $20,000 of annuity and retirement benefits for those who are almost 60 years old, but also the government pension income from the United States, New York State, or New York localities.

In comparison, California only exempts railroad retirement income, and Colorado “raises it” to $24,000. Some states toss the taxpayer’s income right into the middle of the equation. In Connecticut, 42% of retirement income is taken from state income tax if you’re not married and have an adjusted gross income of less than $75,000.

Dorothy