Introduction to New York State Bonds
Bonds issued by New York State and its Public Authorities are debt obligations, the proceeds of which are used to build schools, highways, hospitals, and many other projects for the public good.
When you purchase a New York State Bond, you are lending money to New York State against payment of specified interest (usually paid semiannually) and the return of the principal to you on a specific date.
Generally, interest earned on New York State Bonds is exempt from federal, state, and local income taxes. However, certain New York State Bonds offer interest income that is taxable at the federal level, but not at the state (and often local) level for New York State residents.