Retire in New York: Cost, Taxes & FIRE Number for 2026
Retiring in New York costs about $95,000 a year on average, earning an F retirement tax grade and a #12 healthcare ranking. Here's the full breakdown — cost, taxes, and how much you actually need saved.
What It Costs to Retire in New York
The average retiree in New York spends about $95,000 a year ($7,917/month), based on BLS spending data for households 65 and older, adjusted for New York's cost of living. That works out to a standard retirement number of $2,375,000 under the 4% rule, or $2.71M for early retirees using the more conservative 3.5% FIRE withdrawal rate.
How the numbers below are calculated:
Annual cost = BLS Consumer Expenditure Survey 2024 (65+ household spending) × New York's cost-of-living index (MERIC Q3 2025).
Standard Retirement Number = Annual Cost ÷ 0.04 (4% rule, ~30-year horizon)
FIRE Number = Annual Cost ÷ 0.035 (3.5% rule, 40–50+ year horizon for early retirees)
New York earns an F retirement tax grade from Plootus Research and ranks #12 of 50 states for healthcare quality. Combined with an average annual salary of $84,180 for working residents (median $68,240), that gives a fuller picture of what building — and eventually spending down — a nest egg looks like here.
New York Retirement at a Glance
| Average annual retirement cost | $95,000/yr ($7,917/mo) |
| Standard Retirement Number (4% rule) | $2,375,000 |
| FIRE Number (3.5% SWR) | $2.71M |
| Retirement Tax Grade | F |
| State Income Tax | 10.9% max |
| Social Security Tax | ✅ No tax |
| Healthcare Quality Rank | #12 of 50 |
| FIRE-Friendliness Rating | ★☆☆☆☆ |
| Avg. Annual Salary (working residents) | $84,180 |
| Median Annual Salary (working residents) | $68,240 |
Sources: BLS CES 2024 (65+); MERIC Q3 2025; BLS OEWS May 2024; Plootus Research 2026.
Your New York-Adjusted Retirement Number
Pre-filled with New York's average retirement spending — adjust for your own situation.
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How New York Compares to Nearby States
| State | Annual Cost | Retirement Number | Tax Grade | HC Rank |
|---|---|---|---|---|
| New York | $95,000 | $2,375,000 | F | #12 |
| Massachusetts | $82,000 | $2,050,000 | D | #2 |
| Connecticut | $74,000 | $1,850,000 | D | #1 |
| Rhode Island | $64,000 | $1,600,000 | D | #17 |
How New York Treats Retirees on Taxes and Healthcare
New York carries an F retirement tax grade from Plootus Research — one of the least tax-friendly states for retirees, driven primarily by its high income tax rate and overall cost burden.
State Income Tax
New York's state income tax tops out at 10.9% — among the highest in the country. Check current brackets and any retirement-income deductions before you file.
Social Security Tax
New York does not tax Social Security benefits, one of the brighter spots for retirees in an otherwise high-tax state. Confirm current rules with a tax professional.
New York ranks #12 nationally for healthcare quality — one of the stronger states for retirees who prioritize access to quality care and specialist networks.
Frequently Asked Questions: Retiring in New York
New York earns an F retirement tax grade and ranks #12 of 50 for healthcare quality. Average annual retirement spending runs about $95,000, requiring roughly $2,375,000 in savings under the standard 4% withdrawal rule. Whether it's a good fit depends on your priorities — New York's state income tax is 10.9% max, and it does not tax Social Security.
New York does not tax Social Security benefits, one of the brighter spots in an otherwise high-tax state. Confirm current thresholds and exemptions with a tax professional, since rules change year to year.
Using the standard 4% rule, retiring in New York on its average annual cost of $95,000 requires approximately $2,375,000 in savings. That figure excludes Social Security, which most retirees layer on top to reduce the amount they need from their own portfolio.
At a 3.5% safe withdrawal rate — the more conservative rate recommended for early retirees facing a 40–50+ year horizon — New York's FIRE number is approximately $2.71M, based on its $95,000/year average cost. Early retirees should also budget separately for healthcare before Medicare eligibility at 65.
Sources
- Bureau of Labor Statistics, Consumer Expenditure Survey 2024 (65+ age group)
- Missouri Economic Research and Information Center (MERIC), Cost of Living Index Q3 2025
- Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS) May 2024
- Kiplinger, Retirement Taxes 2026; WalletHub Best States to Retire 2026
- Plootus Research 2026 (tax grades, healthcare rank, FIRE ratings)
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