New York's income tax brackets and rates

New York has nine tax brackets that range from 4% to 10.9%, depending on how much you earn. The rate you pay depends on your filing status (single, married filing jointly, head of household, or married filing separately) and your total income for the year. Unlike a flat tax, you do not pay the highest rate on all your income — you pay the lowest rate on the first portion, then move up through each bracket as your income increases.

As of 2024, a single filer in New York pays 4% on income up to $11,000, then 4.5% on income between $11,000 and $13,000, and so on, with the top rate of 10.9% applying only to income over $25,000,000. Married couples filing jointly have higher income thresholds before entering each bracket. The exact dollar amounts change each year based on inflation adjustments, so the brackets you see this year will differ slightly from next year.

New York also taxes capital gains (profit from selling stocks, real estate, or other investments) at the same rates as ordinary income, with no separate capital gains tax. However, if you have long-term capital gains — assets held for more than one year — you may owe federal tax on them at lower rates than New York charges on ordinary income.

Key Takeaways

  • New York income tax rates range from 4% to 10.9% depending on your income level and filing status, not a single flat rate.
  • You pay the lower rate only on income within each bracket, so earning more money does not mean your entire income is taxed at the higher rate.
  • Tax brackets adjust each year for inflation, so the dollar amounts that trigger each rate change annually.
  • New York taxes capital gains at the same rates as wages and salary, unlike some states that offer preferential rates.

How the bracket system actually works

The bracket system means your tax bill does not jump dramatically when you cross into a higher bracket. If you are single and earn $12,500, you pay 4% on the first $11,000 ($440) and 4.5% on the remaining $1,500 ($67.50), for a total of $507.50. You do not pay 4.5% on all $12,500. This is called "marginal" taxation — only the income in each bracket gets taxed at that bracket's rate.

Your effective tax rate — the percentage of your total income that goes to taxes — is always lower than your marginal rate (the rate on your last dollar earned). A single filer earning $50,000 might have a marginal rate of 6.5% but an effective rate of around 5.2%, because most of their income was taxed at the lower rates in the lower brackets.

Who pays New York income tax

You owe New York income tax if you are a resident of the state or if you earned income in New York while living elsewhere. Residency is determined by where you maintain a permanent home and where you spend most of your time. If you moved to New York during the year, you owe tax on income earned after you became a resident. If you moved out, you owe tax only on income earned before you left.

New York also taxes nonresidents on income earned within the state. If you live in New Jersey but work in New York, you owe New York tax on your wages. However, you may be able to claim a credit on your New Jersey return for taxes paid to New York, so you do not pay both states on the same income.

Deductions and credits that reduce your bill

New York allows you to subtract certain expenses from your income before calculating tax. The standard deduction — a flat amount you can deduct without itemizing — was $8,000 for single filers and $16,000 for married couples filing jointly in 2024. If you own a home and pay mortgage interest or property taxes, or if you donate to charity, you may be able to itemize deductions instead, which can lower your taxable income further.

New York also offers tax credits that directly reduce the amount of tax you owe. The Earned Income Tax Credit (EITC) is a refundable credit for lower-income workers, meaning you can receive money back even if you owe no tax. The Child and Dependent Care Credit helps offset the cost of childcare. The Empire State Child Tax Credit provides up to $330 per child under age 4 and $70 per child ages 4 to 16. These credits phase out at higher income levels.

Filing deadlines and payment

New York income tax returns are due on the same date as federal returns, typically April 15 of the following year. If you file a federal extension, your New York return is automatically extended to the same date. You can file electronically through the New York Department of Taxation and Finance website or through a tax preparer.

If you owe tax, you can pay online, by mail, or through an electronic funds withdrawal from your bank account. If you expect to owe more than $300 for the year, New York requires you to make estimated tax payments four times per year — usually in April, June, September, and January — if you are self-employed or have income not subject to withholding.

Local income tax in New York City and other municipalities

In addition to state tax, New York City residents pay a local income tax that ranges from 3.876% to 3.876% for most filers, though the exact rate depends on your income and filing status. Some other cities and counties in New York also impose local income tax. If you work in New York City but live outside the city, you may owe city tax on your wages depending on where you live.

The city tax is separate from state tax and is calculated on your New York State taxable income. You report it on a separate form (Form NYC-1) when you file your state return. If you moved during the year, you owe city tax only for the months you lived in the city.

Frequently Asked Questions

Do I have to file a New York return if I only lived there part of the year?

Yes, if you earned income while living in New York, you must file a return for the portion of the year you were a resident. You report only the income earned during the months you lived in the state. If you moved out in June, you file a part-year resident return and pay tax only on income earned January through June.

What is the difference between New York State tax and New York City tax?

State tax is collected by the New York Department of Taxation and Finance and funds state programs. City tax is collected by New York City and funds city services. Both apply to New York City residents. If you live in Buffalo or Rochester, you pay state tax plus that city's local tax, but not New York City tax. The rates and brackets are different for each.

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 state and local property taxes (up to $10,000 combined with sales tax) on your federal return, and you can deduct New York State income tax on your federal return, subject to the same $10,000 cap.

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

The Department of Taxation and Finance may assess penalties and interest on unpaid tax, and the state can place a lien on your property or garnish your wages. If you are owed a refund, you cannot receive it without filing. The state can also hold your refund to pay back taxes owed.

Do I owe New York tax if I work remotely for a company outside New York?

If you are a New York resident, you owe New York tax on all income, regardless of where your employer is located or where you work. If you are a nonresident who works remotely for a New York company, you generally do not owe New York tax unless you physically work in the state. The rules changed during the pandemic, so check the current guidance from the Department of Taxation and Finance if your situation is recent.