Yes, New York has a state income tax that applies to most residents and workers

New York State charges income tax on wages, self-employment income, investment gains, and other earnings. The tax rate depends on your income level and filing status. Unlike some states, New York does not have a flat tax — the rate increases as your income increases, ranging from 4% to 10.9% as of 2024.

If you live in New York, work in New York, or receive income from New York sources, you will owe state income tax unless you fall into a specific exemption category. New York City residents also pay an additional city income tax on top of the state tax, which ranges from 3.876% to 3.876% depending on income level.

The tax year runs January 1 through December 31, and returns are due April 15 unless you request an extension. New York uses the federal tax year and filing deadline, but state and federal taxes are filed separately.

Key Takeaways

  • New York State income tax rates range from 4% to 10.9% depending on your income bracket and filing status.
  • New York City residents owe an additional city income tax on top of state tax, making the combined rate higher than upstate residents pay.
  • You owe New York income tax if you live in the state, work in the state, or earn income from New York sources, even if you live elsewhere.
  • Tax returns are due April 15 each year, and you file state and federal taxes on separate forms.

New York income tax brackets and rates for 2024

New York uses a progressive tax system with ten tax brackets. Your rate depends on your total income and whether you file as single, married filing jointly, married filing separately, or head of household. The lowest bracket starts at 4% for income under a certain threshold, and the highest bracket reaches 10.9% for income above $6.85 million (for single filers).

The exact dollar amounts that define each bracket change slightly each year. For example, in 2024, a single filer in the lowest bracket pays 4% on income up to $8,500. A single filer in the highest bracket pays 10.9% on income over $6,850,000. Married couples filing jointly have higher income thresholds before entering each bracket.

New York also offers a property tax credit and a dependent exemption credit that can reduce your tax bill. These credits are separate from the federal credits you may claim on your federal return.

Who must file a New York State tax return

You must file a New York State return if you lived in New York for any part of the tax year and your income exceeds the filing threshold for your age and filing status. The threshold is typically lower than the federal threshold, so you may owe state tax even if you do not owe federal tax.

You also must file if you had New York State income tax withheld from your paychecks, even if your income is below the threshold. This includes W-2 wages, self-employment income, and income from rental property or investments located in New York.

If you moved out of New York during the year, you may owe a part-year resident return. You will report income earned while you lived in New York on that return. If you moved to another state, you may owe tax to both states, though New York offers a credit for taxes paid to other states to prevent double taxation.

New York City income tax on top of state tax

New York City residents pay both state and city income tax. The city tax is separate from the state tax and uses its own brackets and rates. City tax ranges from 3.876% to 3.876% depending on income level, though the exact rates vary by filing status.

The city tax is withheld from paychecks if your employer is located in New York City or if you work for a New York City employer. You report city tax on a separate form (Form NYC-1) when you file your state return. The city return is not filed separately — it goes to the state as part of your state filing.

If you live outside New York City but work in the city, you may owe city tax on wages earned in the city. Some employers outside the city also withhold city tax if you work for a New York City-based company. Check your pay stub to see if city tax is being withheld.

How to file your New York State tax return

You can file online through the New York Department of Taxation and Finance website, by mail, or through a tax preparer. The state offers free filing software for residents with income below a certain threshold. You will need your Social Security number, W-2 forms from employers, 1099 forms for self-employment or investment income, and documentation of any deductions or credits you claim.

If you file by mail, send your return to the address listed in the tax form instructions. The postmark date is the filing date, so mail your return by April 15 to meet the deadline. If you need more time, you can request an automatic extension, which gives you until October 15 to file.

If you owe tax, you can pay online, by phone, by mail, or through an electronic funds withdrawal from your bank account. If you are due a refund, direct deposit is the fastest way to receive it — the state typically processes refunds within 30 days of receiving your return if you file electronically.

Deductions and credits available to New York residents

New York allows you to claim either the standard deduction or itemized deductions, just like on your federal return. The standard deduction amount depends on your age and filing status. If you are 65 or older, you get an additional standard deduction.

New York offers several credits that reduce your tax bill directly. The property tax credit helps homeowners and renters with property taxes or rent paid. The dependent exemption credit provides a credit for each dependent you claim. The earned income tax credit (EITC) is available to low-income workers and families, and the state credit is in addition to the federal EITC.

You cannot claim the same expense as both a deduction and a credit. If an expense qualifies for both, choose whichever gives you the larger tax benefit. Your tax preparer or the state's free software can help you determine which option saves you more money.

What happens if you do not file or pay on time

If you do not file by April 15, the state charges a failure-to-file penalty of 5% per month of the tax owed, up to 25%. If you do not pay by April 15, a failure-to-pay penalty of 0.5% per month applies, up to 25%. Interest also accrues on unpaid tax at a rate set by the state each quarter.

If you file late but have a refund coming, you do not face a penalty, though you will not receive your refund until you file. If you request an extension before April 15, you avoid the failure-to-file penalty, but you still owe any tax due by April 15 or you will face the failure-to-pay penalty.

If you cannot pay the full amount by the deadline, contact the New York Department of Taxation and Finance to set up a payment plan. The state offers installment agreements that allow you to pay over time, though interest and penalties continue to accrue until the balance is paid in full.

Frequently Asked Questions

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

You owe tax on income earned while you lived in New York during that tax year. If you moved out partway through the year, file a part-year resident return and report only the income you earned before you moved. You do not owe tax on income earned after you established residency in another state, though you may owe tax to that state instead.

What if I work in New York but live in another state?

You owe New York income tax on wages earned in New York, even if you live elsewhere. Your employer will withhold New York tax from your paycheck. You file a New York non-resident return and report only the income earned in New York. You may also owe tax to your home state, and you can claim a credit on your home state return for taxes paid to New York.

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

No. New York does not allow you to deduct federal income tax paid. You can only deduct state and local taxes (SALT) up to $10,000 on your federal return. New York State taxes are not deductible on your New York return.

What is the difference between withholding and estimated tax?

Withholding is tax taken from your paycheck by your employer. Estimated tax is tax you pay directly to the state if you are self-employed or have income not subject to withholding. If you expect to owe more than $300 in state tax and do not have enough withheld, you should make quarterly estimated tax payments to avoid penalties.

How do I claim a refund if I overpaid?

If you overpaid New York State income tax, you will receive a refund when you file your return. You can choose direct deposit to your bank account or a paper check mailed to your address. If you do not receive your refund within 60 days of filing electronically or 90 days of mailing your return, contact the Department of Taxation and Finance to check the status.