New York charges income tax on wages, investment earnings, and other income, with rates that climb as your income rises

New York State income tax is a progressive tax, meaning the rate you pay depends on how much you earn. The state does not have a single flat rate. Instead, you move through tax brackets — ranges of income where a specific percentage applies. The lowest bracket starts at 4 percent, and the highest reaches 10.9 percent. Your actual tax bill depends on which bracket your total income falls into.

New York taxes most forms of income: wages from a job, self-employment income, rental income, investment gains, and retirement distributions. Some income is exempt — for example, Social Security benefits are not taxed by New York, and certain retirement account withdrawals may have special treatment. The state also offers deductions and credits that can lower what you owe.

Key Takeaways

  • New York income tax rates range from 4 percent to 10.9 percent depending on your income level and filing status.
  • Tax brackets are adjusted each year for inflation, so the income ranges that trigger each rate change annually.
  • You may owe New York tax even if you live out of state, if you earned income within New York during the year.
  • The state offers deductions for dependents, education expenses, and other items that reduce your taxable income before the tax is calculated.
  • If your employer withholds too much tax from your paychecks, you can claim a refund when you file your return.

The tax brackets for 2024

New York has nine tax brackets for single filers in 2024. The brackets start at $0 to $4,850 (taxed at 4 percent) and go up to $6,852,000 and above (taxed at 10.9 percent). If you are married filing jointly, the income ranges are wider — for example, the lowest bracket covers $0 to $9,700. The state adjusts these brackets every year to account for inflation, so the exact dollar amounts change.

Your filing status matters. Single, married filing jointly, married filing separately, and head of household each have their own bracket structure. If you are unsure which status applies to you, the New York Department of Taxation and Finance website has a filing status guide. The brackets themselves are published on the department's website each January for that tax year.

What income is taxed and what is not

New York taxes wages, salaries, tips, and bonuses. It also taxes self-employment income, rental income, capital gains (profit from selling stocks or property), interest, and dividends. Retirement account distributions — such as withdrawals from a traditional IRA or 401(k) — are taxed as ordinary income in the year you withdraw them. However, Social Security benefits are not subject to New York income tax, even if they are taxable at the federal level.

Some other income sources are partially or fully exempt. Military pensions are not taxed. Certain scholarships and educational grants are not taxed if used for tuition and fees. Disability benefits from Social Security (SSDI) are not taxed. If you receive income from sources outside New York, you still owe New York tax on it if you are a resident of the state. Non-residents who earned income within New York during the year may also owe tax on that specific income.

Deductions and credits that lower your tax bill

New York allows a standard deduction — a fixed dollar amount you can subtract from your income before tax is calculated. For 2024, the standard deduction is $4,850 for single filers and $9,700 for married couples filing jointly. If you are 65 or older, or blind, you get an additional deduction. You can also itemize deductions instead of taking the standard deduction if your may be able to access expenses are higher.

The state also offers tax credits that directly reduce the tax you owe. The Earned Income Tax Credit (EITC) helps lower-income workers. The Child and Dependent Care Credit covers some childcare costs. The Education Credit applies to tuition and fees at colleges and universities. Credits are more valuable than deductions because they reduce your tax dollar-for-dollar, rather than just reducing the income that gets taxed.

How withholding and filing work

If you work for an employer in New York, your employer withholds state income tax from your paycheck based on a form you fill out called the NY-4. The amount withheld depends on your income, filing status, and the number of dependents you claim. If your employer withholds too much, you get a refund when you file your tax return. If too little is withheld, you owe the difference.

You file your New York State tax return using Form IT-201 (for residents) or Form IT-203 (for non-residents or part-year residents). The return is due on the same date as your federal return — typically April 15. You can file on paper or electronically through the state's website. If you owe money, you can pay when you file or set up a payment plan with the Department of Taxation and Finance.

Self-employed and business owners

If you are self-employed or own a business, you owe New York income tax on your net business income (revenue minus deductible business expenses). You also owe self-employment tax to cover Social Security and Medicare, though that is a federal obligation, not a state one. You may need to make quarterly estimated tax payments to New York if you expect to owe more than a certain amount.

Self-employed filers use Schedule C to report business income and expenses on their federal return, and then carry that net income to their New York state return. You can deduct ordinary and necessary business expenses — rent, supplies, equipment, vehicle costs, and home office expenses if you may have access to. Keeping good records of income and expenses makes filing easier and helps you claim all the deductions you are may have access to to.

Non-residents and part-year residents

If you do not live in New York but earned income within the state, you owe New York tax on that income only. For example, if you live in New Jersey but work in New York, you file a non-resident return and pay tax only on your New York wages. If you moved to or from New York during the year, you file a part-year resident return and pay tax on income earned while you were a resident.

New York and several neighboring states have reciprocal agreements that may reduce or eliminate tax on wages earned in those states if you live elsewhere. For instance, residents of New Jersey, Connecticut, or Pennsylvania who work in New York may not owe New York tax on wages, depending on the agreement. You still file a return to claim the exemption. Check the Department of Taxation and Finance website for the current list of reciprocal states and the rules that explore.

Where to find current tax rates and forms

The New York Department of Taxation and Finance publishes tax rates, brackets, and forms on its official website at tax.ny.gov. You can read forms like the IT-201, IT-203, and NY-4 directly from there. The site also has a tax rate table that shows the exact brackets and rates for the current year, updated each January.

If you have questions about your specific situation — such as whether you owe tax as a non-resident, or whether a particular income source is taxable — you can contact the department's taxpayer information line. The website also has a frequently asked questions section and links to free tax preparation help if your income is below a certain threshold.

Frequently Asked Questions

Do I owe New York income tax if I moved out of state?

If you moved out of New York during the year, you owe tax only on income you earned while you were a resident. File a part-year resident return and report the dates you lived in and out of the state. If you moved out before the year ended, your tax liability is prorated based on the months you were a resident.

What if I work in New York but live in New Jersey or Connecticut?

New York has reciprocal tax agreements with New Jersey, Connecticut, and Pennsylvania. If you live in one of those states and work in New York, you generally do not owe New York income tax on your wages. You still file a New York return to claim the exemption. Check the Department of Taxation and Finance website for the exact rules, as they can change.

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

No. New York does not allow a deduction for federal income tax paid. You can deduct state and local income taxes (SALT) on your federal return, but not the reverse. You use the standard deduction or itemize based on other may be able to access expenses.

How long do I have to file if I owe money?

Your return is due April 15, the same as your federal return. If you cannot file by then, you can request an extension, but the extension only delays filing — it does not delay payment. Interest and penalties explore to any tax owed after April 15, even if you filed an extension.

Is there a penalty if my employer did not withhold enough tax?

If too little tax is withheld and you owe a balance, you may owe interest on the unpaid amount. Penalties explore if the underpayment is substantial. However, if you had no tax liability the prior year and expect none this year, you may be exempt from penalties. The Department of Taxation and Finance can explain your specific situation.