Social Security in New York: Everything You Need to Know

Social Security makes a sizable financial contribution to New York State, which receives financial support worth tens of billions of dollars annually for millions of its retired and disabled citizens as well as their relatives and certain low-income people. For its part, the state exempts Social Security benefits from state income taxes, making it moderately tax-friendly to retirees.

In 2022, more than 3.7 million New York State residents received payments from Social Security's main Old Age, Survivors and Disabilities Insurance (OASDI) program, including 2.7 million retired workers, 122,422 spouses and 44,582 children. These beneficiaries collected more than $71 billion annually. In the New York region, which includes New Jersey, Puerto Rico and the U.S. Virgin Islands, there are more than 100 local Social Security offices where people can apply for new or replacement cards and get questions answered concerning any aspect of Social Security.

Making best use of Social Security benefits is a key topic in retirement planning, and one on which a financial advisor can provide invaluable information, insight and guidance.

New York Social Security Taxation

New York is a fairly accommodating state when it comes to taxes levied on retirees . As in most states, Social Security benefits are not taxed. In New York, neither are benefits from public pensions paid by New York state or local government or by the federal government. In addition, up to $20,000 in payments from corporate pensions or withdrawals from retirement accounts such as IRAs and 401(k) are exempt from the state income tax, which has rates beginning at 4%.

Although state income tax doesn't apply, the generally high burden of other taxes in the state also can be a consideration for people receiving Social Security. The combination of state and local sales taxes averages 8.25% and effective property taxes average 1.72%.

Social Security Payments to New Yorkers

As the fourth-most populous state, New York naturally receives a sizable share of the monies paid out by Social Security. In 2022, for instance, Social Security figures show that New York residents cashed OASDI checks worth more than $71 billion, including $55 billion for retirement, $7.4 billion for survivors and $8.5 billion for disability.

Those payments went to more than 3.7 million beneficiaries. Recipients included 2.7 million retired workers along with 122,422 spouses and 44,582 children of retirees. Another 195,704 surviving spouses and parents as well as 97,156 children received survivor's benefits. In addition, 433,997 disabled workers, 5,064 spouses and 66,190 children received disability benefits.

Smaller numbers of New Yorkers got benefits from Supplemental Security Income (SSI) , the tax-supported for elderly, blind or disabled low-income people. Social Security's report on 2022 showed Supplemental Security Income paid 573,058 New Yorkers, including 110,797 aged, 2,924 blind and 459,337 disabled recipients. Total SSI payments to New Yorkers came to more than $4.2 billion, including $604 million to aged, $21.5 million to blind and $3.6 billion to disabled beneficiaries.

New York Social Security Contacts

If a New York resident has a question about applying for benefits, replacing a lost card, changing benefit information or any other topic related to Social Security help is available from one of agency's local offices. The New York region of Social Security also includes New Jersey, Puerto Rico and the U.S. Virgin Islands, and includes more than 100 local field offices. Social Security's office locator pinpoints the nearest offices based on ZIP code. Similar services can be accessed online or by calling 800-772-1213 .

New York City has Social Security Card centers in the Bronx, Brooklyn, Manhattan and Queens. These offices are the only locations where U.S. citizens and non-citizens living in these four boroughs can apply for original numbers or replacement cards.

For help with your Social Security benefits and beyond, consider matching with a financial advisor .

Bottom Line

Social Security recipients in New York don't owe any state income tax on their benefits, although the state's other taxes can present an issue for some retirees. The state's residents received more than $71 billion in retirement and disability benefits from Social Security in 2022, plus additional payments under the Supplemental Security Income program. More than 4.2 million New Yorkers, in all received retirement, survivors, disability or SSI payments that year. New Yorkers with questions about Social Security can contact local offices throughout the state for information and help with applying for new numbers, getting replacement cards, changing beneficiary information or other tasks.

Tips

• Get a handle on how much your Social Security benefits are likely to be with the help of SmartAsset's Social Security Calculator .
• Make sure you are well-informed about your Social Security benefits by consulting a financial advisor. Finding a financial advisor doesn't have to be hard. SmartAsset's free tool matches you with up to three financial advisors in your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you're ready to find an advisor who can help you achieve your financial goals, get started now .
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