For the full state income tax comparison and relocation planning framework, see the State Taxes hub.

New York has one of the highest state income taxes — 4% to 10.9% — and NYC residents pay an additional 3.078-3.876% city tax.

New York State Tax Rates 2026

New York uses nine income tax brackets with rates ranging from 4% to 10.9%. The top rate only applies to income above $25 million, so it affects very few filers. Most middle-income earners fall in the 5.5-6% range. The brackets for married filers are roughly double the single filer amounts, which avoids the “marriage penalty” that exists in some other state tax codes.

Single Filers

Taxable Income Rate
$0 - $8,500 4%
$8,501 - $11,700 4.5%
$11,701 - $13,900 5.25%
$13,901 - $80,650 5.5%
$80,651 - $215,400 6%
$215,401 - $1,077,550 6.85%
$1,077,551 - $5,000,000 9.65%
$5,000,001 - $25,000,000 10.3%
$25,000,001+ 10.9%

Married Filing Jointly

Taxable Income Rate
$0 - $17,150 4%
$17,151 - $23,600 4.5%
$23,601 - $27,900 5.25%
$27,901 - $161,550 5.5%
$161,551 - $323,200 6%
$323,201 - $2,155,350 6.85%
$2,155,351 - $5,000,000 9.65%
$5,000,001 - $25,000,000 10.3%
$25,000,001+ 10.9%

NYC Income Tax Rates (Additional)

New York City imposes its own income tax on top of the state tax, making it one of the most heavily taxed cities in America. The NYC tax ranges from 3.078% to 3.876%, and there’s no escaping it if you live within the five boroughs. At the top combined rate, NYC residents can pay up to 14.776% in state and local income tax alone — before federal taxes.

NYC residents pay city tax on top of state tax:

Taxable Income NYC Rate
$0 - $12,000 3.078%
$12,001 - $25,000 3.762%
$25,001 - $50,000 3.819%
$50,001+ 3.876%

Total NYC tax rate: State (up to 10.9%) + NYC (up to 3.876%) = up to 14.776%

How Much Will I Pay in New York Tax?

State Tax Only (Non-NYC)

Taxable Income Single Tax Effective Rate
$50,000 $2,537 5.07%
$75,000 $3,912 5.22%
$100,000 $5,411 5.41%
$150,000 $8,411 5.61%
$200,000 $11,411 5.71%
$500,000 $31,959 6.39%
$1,000,000 $66,253 6.63%

NYC Residents (State + City)

Taxable Income State Tax NYC Tax Total Effective Rate
$50,000 $2,537 $1,843 $4,380 8.76%
$75,000 $3,912 $2,812 $6,724 8.97%
$100,000 $5,411 $3,781 $9,192 9.19%
$150,000 $8,411 $5,719 $14,130 9.42%
$200,000 $11,411 $7,657 $19,068 9.53%

New York Standard Deduction

New York’s standard deduction is notably lower than the federal deduction — $8,000 for single filers versus $14,600 at the federal level. This means more of your income is subject to state tax. Unlike the federal code, New York does allow unlimited deductions for state and local property taxes when you itemise, which benefits homeowners in high-tax counties.

Filing Status Standard Deduction
Single $8,000
Married Filing Jointly $16,050
Married Filing Separately $8,000
Head of Household $11,200

New York’s deduction is lower than the federal standard deduction.

New York Dependent Exemption

Exemption Amount
Each dependent $1,000

MCTMT (Metropolitan Commuter Transportation Mobility Tax)

Employers and self-employed individuals in the MTA district pay:

Situation Rate
Employers on payroll 0.34%
Self-employed (net earnings > $50,000) 0.34%

Applies to NYC, Long Island, Westchester, Rockland, Dutchess, Putnam, Orange counties.

New York Capital Gains Tax

Unlike the federal tax code, New York does not offer preferential rates for long-term capital gains — they’re taxed as ordinary income. For NYC residents, this means capital gains face a combined state and city rate of 10-14.8%, on top of federal capital gains tax. This is a major consideration for high-net-worth residents selling businesses, real estate, or large stock positions, and it’s one of the reasons wealthy New Yorkers relocate to states with no income tax.

New York taxes capital gains as ordinary income (no special rate):

Income Level State Rate NYC Rate Combined
Most earners 6-6.85% 3.876% 10-11%
$1M+ 9.65% 3.876% 13.5%

Yonkers Resident Tax

Yonkers residents pay an additional surcharge:

Status Rate
Resident 16.75% of state tax
Nonresident (work in Yonkers) 0.5% of wages

Who Must File a New York Tax Return?

You must file if you’re:

  • A New York resident with income above filing threshold
  • A part-year resident with NY income
  • A nonresident with NY source income

Filing Thresholds (2026)

Filing Status Gross Income
Single $4,000+
Married Filing Jointly $4,000+
Head of Household $4,000+

New York Tax Credits

Credit Amount
Empire State Child Credit 33% of federal child credit
Earned Income Credit 30% of federal EITC
College Tuition Credit Up to $400/student
Real Property Tax Credit Varies (income-based)
Solar/Clean Energy Credit 25% of solar installation

NYC Credits (Additional)

Credit Amount
NYC School Tax Credit $63-$125
NYC Earned Income Credit 5% of federal EITC
NYC Child Care Credit 75% of federal credit

New York Tax Deductions

Itemized Deductions Allowed

  • Charitable contributions
  • Medical expenses
  • Real property taxes (no $10,000 limit at state level)
  • Mortgage interest

Deductions NOT Allowed

  • State/local taxes paid (SALT)
  • 529 contributions (not deductible in NY)

New York Retirement Income

New York offers some relief for retirees. Social Security is fully exempt from state tax, and the first $20,000 of retirement income (pensions, 401(k), IRA distributions) is excluded for taxpayers age 59½ or older. Government pensions — including federal, state, and local — are entirely exempt. However, retirees with significant income above the $20,000 threshold still face the full state tax rates.

Income Source Taxable?
Social Security Not taxed
401(k)/IRA (first $20,000 if 59½+) Exempt
401(k)/IRA (over $20,000) Taxed
Pension (government) Exempt
Pension (private, first $20,000) Exempt

The $20,000 pension/retirement exclusion applies per person (age 59½+).

New York vs. Other High-Tax States

State Top Rate Notes
California 13.3% Income over $1M
New York 10.9% Income over $25M
NYC 14.776% State + City
New Jersey 10.75% Income over $1M
Hawaii 11% Income over $200K

NYC has the highest combined state+local income tax in the nation — a key reason many high earners eventually relocate to no-income-tax states like Florida, Texas, or Nevada.

How to Reduce New York Tax

1. Maximize Retirement Contributions

Reduce taxable income with 401(k) and IRA contributions.

2. Consider Relocation

Moving just outside NYC (to NJ or CT) can reduce taxes.

3. Charitable Giving

Fully deductible on NY returns.

4. Real Property Tax Credit

Low-income homeowners and renters may qualify.

5. Leave New York (High Earners)

Many high earners move to Florida, Texas, or Nevada.

New York Residency Rules

Factor Resident Test
Domicile Permanent home
183-day rule 183+ days = resident
Statutory residence Maintain home + 184+ days

New York aggressively audits residents who claim to have moved.

New York Tax Filing

Method Cost
NY Free File $0 (income under $79,000)
Commercial software $0-$100
Tax professional $150-$500+

Filing deadline: April 15

Bottom Line

New York state tax ranges from 4% to 10.9%, and NYC residents pay an additional 3.078-3.876% — making the combined rate up to 14.776%, the highest in the nation for local income tax. Most middle-income New Yorkers pay 8-10% effective combined rate. The state doesn’t tax Social Security and offers a $20,000 retirement income exclusion. For high earners, the tax burden makes leaving New York financially attractive.

Moving Out of New York: Tax Pitfalls to Avoid

New York aggressively audits people who claim to have moved, particularly high-income residents. Simply buying a Florida condo is not enough to end your New York tax obligations.

What New York Looks For in a Residency Audit

Factor What NY Checks
Days in New York Phone records, credit card transactions, EZ-Pass records, social media
Domicile Where you “feel at home” — family, business interests, social ties
Primary residence Which home is larger, better furnished, and used most?
183-day rule 183+ days in NY + maintain any NY home = NY resident tax

Steps to Successfully Change Domicile

To safely establish non-resident status:

  1. Establish domicile in new state — file a Declaration of Domicile in Florida (or other state)
  2. Update your voter registration — vote in the new state
  3. Move your professional and financial ties — accountant, attorney, investment accounts, club memberships
  4. Keep a contemporaneous log — document every day spent outside New York
  5. Don’t maintain a New York home — or minimize its size relative to your new home
  6. Update all IDs — driver’s license, passport address, vehicle registration

The 548-day rule: NY requires non-residents to spend at least 548 days (roughly 183 per year over a 3-year period) outside New York to avoid the statutory resident classification in some circumstances. New York’s Department of Taxation and Finance has a dedicated Nonresident Audit Bureau — the state collected over $1 billion in back taxes from failed domicile changes over the last decade.

Sources

WealthVieu
Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.

The content on Wealthvieu is for informational purposes only and should not be considered financial, tax, or investment advice. Consult a qualified professional before making financial decisions. Full disclaimer · Editorial policy