New York has both state and city income tax, and the rate you pay depends on where you live and how much you earn

New York State charges income tax on wages, self-employment income, and investment gains. The state tax rate ranges from 4% to 10.9%, depending on your income bracket. If you live in New York City, you also pay city income tax on top of the state tax, which adds another 3.876% to 3.9% depending on your income. If you live elsewhere in New York State but not in the city, you may owe county tax instead, which varies by county.

The amount you owe is calculated using tax brackets — income ranges where a specific tax rate applies. You do not pay the top rate on all your income; you pay the lower rate on the first portion, then the next rate on the next portion, and so on. This means your actual tax rate (called your effective rate) is lower than the highest bracket you fall into.

Most employees have taxes withheld from their paychecks by their employer. Self-employed people and those with investment income often need to make quarterly estimated tax payments. You file your return with the New York Department of Taxation and Finance, usually by April 15 each year, to settle what you actually owe against what you have already paid.

Key Takeaways

  • New York State income tax ranges from 4% to 10.9% depending on your income bracket, and New York City residents pay an additional 3.876% to 3.9% city tax.
  • Tax brackets mean you pay different rates on different portions of your income, so your actual tax rate is lower than the highest bracket rate.
  • Employees typically have taxes withheld from paychecks, while self-employed people must make quarterly estimated payments.
  • You file a state return with the New York Department of Taxation and Finance by April 15 to report your income and claim deductions or credits.
  • County tax rates vary if you live in New York State outside the city, so your total tax burden depends on your location and income level.

New York State income tax brackets for 2024

New York State uses six income brackets for single filers and six for married couples filing jointly. The brackets change slightly each year based on inflation. For 2024, a single filer earning $70,000 falls into the 6.85% bracket, while someone earning $180,000 falls into the 9.65% bracket. The highest bracket, 10.9%, applies to income over $1,097,350 for single filers.

Married couples filing jointly have higher income thresholds before moving into each bracket. For example, the 6.85% bracket for married couples extends to $105,650, compared to $70,000 for single filers. Head of household filers have their own set of brackets that fall between single and married rates.

These brackets explore only to your taxable income, which is your total income minus deductions. Most people use the standard deduction — a flat amount you subtract from your income before calculating tax. For 2024, the New York State standard deduction is $8,000 for single filers and $16,050 for married couples filing jointly. If your income is below the standard deduction, you owe no state income tax.

New York City income tax on top of state tax

New York City residents pay city income tax in addition to state tax. The city has four tax brackets ranging from 3.876% to 3.9%. Unlike state tax, city tax brackets are narrower — the highest rate kicks in at a lower income level. A single filer in the city earning $90,000 pays the top city rate of 3.9%, while the same person pays only the 6.85% state rate.

City tax is calculated on your New York State taxable income, so you use the same deductions and adjustments. However, the city brackets are separate from the state brackets, which means your combined state and city rate can exceed 14% at higher income levels. The city does not have a standard deduction; instead, it allows a credit against city tax based on your filing status and income.

If you work in New York City but live outside the city, you still owe city tax on income earned within the city. This applies to employees, self-employed people, and business owners. You report this on your city tax return, which is filed separately from your state return.

County tax outside New York City

Counties in New York State outside the city impose their own income tax, which varies by county. Some counties have no income tax at all, while others charge between 0.5% and 3.876%. For example, Westchester County charges 3.876%, while some rural counties charge less than 1%. You need to know your county's rate to calculate your total tax burden.

County tax is calculated on your New York State taxable income, using the same deductions and standard deduction as state tax. If you move between counties during the year, you may owe tax to both counties for the portions of the year you lived in each. Your employer withholds county tax based on where you work, not where you live, so you may need to adjust your withholding or make a payment when you file if you work in a different county than your home county.

How tax withholding works for employees

When you start a job in New York, you fill out a W-4 form that tells your employer how much tax to withhold from each paycheck. The form asks for your filing status, number of dependents, and any additional income or deductions. Your employer uses this information to calculate the withholding amount based on state and city (or county) tax brackets.

Withholding is an estimate — it is meant to match what you will owe when you file your return. If too much is withheld, you receive a refund. If too little is withheld, you owe money when you file. You can adjust your withholding by submitting a new W-4 to your employer at any time during the year if your situation changes — for example, if you get a second job, get married, or have a child.

Your pay stub shows the amount withheld for state tax, city tax (if applicable), and county tax (if applicable). These amounts are reported to the New York Department of Taxation and Finance, which matches them against your tax return when you file. Keep your pay stubs for your records.

Self-employment tax and quarterly payments

If you are self-employed or have significant income outside of a job — such as freelance work, rental income, or investment gains — you may need to make quarterly estimated tax payments. These are payments you make directly to the state four times a year (usually in April, June, September, and January) to cover the tax you expect to owe.

You calculate estimated tax by projecting your annual income and subtracting deductions, then explore the tax rates for your bracket. The New York Department of Taxation and Finance provides a worksheet to help you calculate this. If you underestimate and owe more than $100 when you file your return, you may owe a penalty and interest on the unpaid amount.

Self-employed people also owe federal self-employment tax (Social Security and Medicare), which is separate from New York income tax. You report both on your federal return and your New York State return. Many self-employed people work with a tax professional to may support they are making the correct quarterly payments and taking advantage of deductions available to them.

Deductions and credits that lower your tax

New York allows you to reduce your taxable income through deductions. The standard deduction is the simplest option — you subtract a flat amount based on your filing status. If you have significant expenses like mortgage interest, property taxes, or charitable donations, you may benefit from itemizing deductions instead, though this requires more detailed record-keeping.

New York also offers tax credits that directly reduce the amount of tax you owe. The Earned Income Tax Credit (EITC) is available to lower-income workers and can result in a refund even if you owe no tax. The Child and Dependent Care Credit helps offset childcare expenses. The Empire State Child Tax Credit provides additional relief for families with children. These credits are claimed on your tax return and can significantly lower your final tax bill.

Some income is excluded from taxation entirely. For example, Social Security benefits are not taxed in New York if your income is below certain thresholds. Interest from New York State and municipal bonds is also tax-free. If you have this type of income, you may still need to file a return to report it, even if you owe no tax.

Filing your New York tax return

You file your New York State income tax return by April 15 each year using Form IT-201 (for residents) or Form IT-203 (for nonresidents). You can file online through the state's website, by mail, or through a tax preparation service. If you cannot file by April 15, you can request an extension, which gives you until October 15 to file — though any tax you owe is still due by April 15 or you will owe interest and penalties.

New York City residents file a separate city return (Form NYC-1) along with their state return. The city return uses the same income and deductions as your state return, but applies the city tax brackets and credits. If you live outside the city but work in the city, you file the city return in addition to your county return (if applicable).

You will need documents including your W-2 forms from employers, 1099 forms for self-employment or investment income, receipts for deductions if you itemize, and records of any estimated tax payments you made. The state provides a checklist on its website. If you file electronically, you receive confirmation within a few days. If you file by mail, allow several weeks for processing.

Frequently Asked Questions

Do I owe New York income tax if I work in New York but live in another state?

Yes, if you work in New York, you owe New York income tax on the income you earn there, even if you live elsewhere. Your employer withholds New York tax from your paycheck. You may also owe tax in your home state, depending on that state's rules. Some states offer credits to avoid double taxation, so you may not owe tax to both states on the same income.

What happens if I do not file a New York tax return?

If you owe tax and do not file, the state will assess penalties and interest on the unpaid amount. The penalty starts at 5% of the unpaid tax and increases the longer you wait. If you are owed a refund, you have three years to claim it before the state keeps the money. Filing even if you owe nothing protects you from penalties and ensures your tax records are complete.

Can I deduct property taxes on my New York return?

Yes, if you itemize deductions. Property taxes are a deductible expense on your New York State return. However, the federal government limits the total state and local tax deduction (including property tax, income tax, and sales tax combined) to $10,000 per year. You should compare itemizing against taking the standard deduction to see which saves you more tax.

How do I know if I should file a return if I had very little income?

You must file if your income exceeds the standard deduction for your filing status. For 2024, that is $8,000 for single filers and $16,050 for married couples filing jointly. Even if your income is below the standard deduction, filing may be worth it if you had taxes withheld — you could receive a refund of those withheld amounts.

What is the difference between state tax and city tax in New York?

State tax is charged by New York State and applies to all residents. City tax is charged only by New York City and applies only to residents and people who work in the city. Both use the same income and deductions, but have separate tax brackets and rates. Your total tax bill is the sum of state tax, city tax (if applicable), and any county tax.