The 5 Biggest Tax Breaks for New York Residents in 2023

New York State Tax Breaks Overview

New York residents face a high-tax environment but have opportunities to save through state tax breaks.

1. Traditional IRA Deduction

Contributing to a traditional IRA can provide tax savings on both federal and New York state taxes.

2. Health Savings Account (HSA) Contributions

HSAs offer tax advantages for healthcare expenses and can reduce your federal adjusted gross income, affecting New York taxable income.

3. 529 Education Savings Plan Deduction

New York allows deductions for 529 plan contributions, providing tax benefits for educational expenses.

4. Standard Deduction

Exploring the differences between federal and New York standard deductions for tax savings.

5. New York Itemized Deductions

• State and local taxes without a $10,000 limit
• Home mortgage interest and job-related expenses
• Medical and dental expenses and charitable contributions

Discover how New Yorkers can maximize tax savings through state-specific deductions.