What you pay depends on where you live and what kind of income you have

New York has both a state income tax and, if you live in New York City, a city income tax. The state tax rate ranges from 4% to 10.9% depending on your income bracket. If you live in New York City, you pay an additional city tax that ranges from 3.876% to 3.876% of your income (the city uses a flat percentage of your state tax liability rather than separate brackets). The total combined rate — state plus city — can reach roughly 14.76% for the highest earners in the city.

Your actual tax bill also depends on whether you are a resident or non-resident, whether you work in the city but live elsewhere, and what deductions and credits you can claim. A person earning $50,000 in New York City pays a different total percentage than someone earning $150,000, because both state and city taxes use progressive brackets.

Key Takeaways

  • New York State income tax ranges from 4% to 10.9% depending on your income bracket, with rates that increase as you earn more.
  • New York City residents pay an additional city tax calculated as a percentage of state tax owed, which adds roughly 3.876% to your total burden.
  • Non-residents who work in New York City may owe city tax on wages earned in the city, even if they live elsewhere.
  • Your actual tax rate depends on your filing status, income level, and whether you claim deductions like the standard deduction or itemized deductions.

New York State income tax brackets for 2024

The state uses six tax brackets for single filers. If you earn $0 to $11,200, you pay 4%. From $11,200 to $45,700, the rate is 4.5%. From $45,700 to $110,000, it jumps to 5.85%. From $110,000 to $210,000, you pay 6.25%. From $210,000 to $1,000,000, the rate is 9.65%. And if you earn over $1,000,000, you pay 10.9%.

These brackets are adjusted each year for inflation, so the dollar amounts change annually. Married couples filing jointly have different bracket thresholds — they are roughly double the single filer amounts. Head of household filers have their own set of brackets as well.

The brackets mean you do not pay the top rate on all your income. If you earn $60,000 as a single filer, you pay 4% on the first $11,200, then 4.5% on the next $34,500, then 5.85% on the remaining $14,300. You do not pay 5.85% on the whole $60,000.

New York City income tax for residents

New York City calculates its tax as a percentage of your New York State tax liability, not as a separate bracket system. For most residents, the city tax rate is 3.876% of the state tax you owe. This means if you owe $5,000 in state tax, you owe roughly $194 in city tax.

The city also offers a standard deduction and personal exemptions that reduce your taxable income before you calculate city tax. These amounts differ from the state standard deduction, so you may need to calculate city tax separately even if you use the state standard deduction.

If you live in New York City and earn income from self-employment, rental property, investments, or wages, you owe city tax on that income. The city requires you to file a separate return (Form NYC-1) in addition to your state return.

Tax rates for non-residents who work in New York City

If you live outside New York City but work there, you owe city tax on the wages you earn within the city. The rate is the same 3.876% of state tax, but calculated only on the income you earned in the city, not on income from other sources or other states.

You must file Form NYC-1 as a non-resident if your city wages exceed the filing threshold. Some employers will withhold city tax automatically if you work in the city and live elsewhere, but you should verify this with your payroll department. If they do not withhold, you may owe tax when you file your return.

Sales tax, property tax, and other New York taxes

Income tax is not the only tax you pay in New York. The state sales tax is 4%, but New York City adds a local sales tax of 4.5%, for a combined rate of 8.5% in the city. Some counties outside the city have different combined rates.

If you own property in New York, you pay property tax to your local municipality. Property tax rates vary widely by county and town — there is no single statewide rate. New York City property tax is assessed by the Department of Finance and varies by property type and location.

If you own a vehicle registered in New York, you pay registration fees and may owe sales tax on the purchase. Gasoline is taxed at the state level as well.

Deductions and credits that lower your New York tax bill

You can reduce your New York taxable income using the standard deduction. For 2024, the standard deduction for a single filer is $8,000, and for married filing jointly it is $16,050. If you are 65 or older, you get an additional deduction amount.

New York also offers credits that reduce your tax directly, rather than reducing your income. The Earned Income Tax Credit (EITC) is available to lower-income workers. The Child and Dependent Care Credit helps parents who pay for childcare. The Property Tax Credit and Rent Increase Exemption (STAR) program reduce property taxes for homeowners and renters in certain income ranges.

If you paid estimated taxes during the year or had too much withheld from your paycheck, you may receive a refund when you file. You can claim a refund on your state return (Form IT-201) and your city return (Form NYC-1) if you are a city resident.

How to calculate what you owe

Start with your total income from all sources: wages, self-employment, rental income, investment income, and any other taxable income. Subtract the standard deduction (or itemized deductions if you choose to itemize). This gives you your New York taxable income.

Find your tax bracket based on your filing status and taxable income. Multiply the portion of your income in each bracket by that bracket's rate. Add up the tax from all brackets to get your total state tax.

If you live in New York City, multiply your state tax by 3.876% to find your city tax. Add state and city tax together. Then subtract any credits you are may have access to to claim. The result is your total New York tax liability.

If you are a non-resident who worked in the city, calculate your state tax on your total income, then calculate city tax only on the portion of income earned in New York City.

Frequently Asked Questions

Do I have to pay New York tax if I live in another state but work in New York?

If you work in New York City, you owe city tax on wages earned there. If you work elsewhere in New York State, you owe state tax on those wages. You file as a non-resident and report only the income earned in New York. Your home state may also tax you on your worldwide income, so you may owe tax in two states.

What is the difference between the standard deduction and itemized deductions?

The standard deduction is a fixed amount you subtract from your income with no documentation required. Itemized deductions let you add up specific expenses (mortgage interest, property taxes, charitable donations) and subtract the total instead. You choose whichever is larger. Most people use the standard deduction because it is simpler and often larger.

Can I deduct federal income tax from my New York return?

No. New York does not allow you to deduct federal income tax paid. However, you can deduct New York State income tax on your federal return (up to $10,000 per year under current federal rules). Property taxes and sales taxes are also subject to the $10,000 federal cap.

How do I know if I have to file a New York return?

You must file if your income exceeds the filing threshold for your age and filing status. For 2024, a single person under 65 with at least $8,000 in income must file. The threshold is higher if you are 65 or older, or if you are married filing jointly. Check the New York Department of Taxation and Finance website for the exact threshold that applies to you.

What happens if I do not pay my New York taxes?

The state can assess penalties and interest on unpaid tax. Interest accrues daily at a rate set quarterly. Penalties range from 5% to 25% of the unpaid tax depending on the reason for non-payment. The state can also place a lien on your property, garnish your wages, or offset your refunds from other sources.