New York State income tax rates depend on your filing status and income level
New York State uses a progressive tax system, meaning the rate you pay increases as your income increases. You do not pay one flat rate on all your income — instead, different portions of your income are taxed at different rates. The state has nine tax brackets for most filers, ranging from 4% on the lowest income to 10.9% on the highest.
Your actual tax bill depends on three things: your total income for the year, your filing status (single, married filing jointly, head of household, or married filing separately), and which tax bracket each portion of your income falls into. The brackets themselves change slightly each year to account for inflation.
New York taxes wages, self-employment income, investment income, and retirement distributions. If you work in New York but live elsewhere, or live in New York but work elsewhere, different rules may apply — but most people pay based on where they live.
Key Takeaways
- New York has nine tax brackets ranging from 4% to 10.9%, and the rate that applies to you depends on your income and filing status.
- The tax brackets shift each year, so the income ranges that trigger each rate change annually.
- You pay the lowest rate on your first dollars earned and higher rates only on income above each bracket threshold.
- If you live in New York City, Yonkers, or certain other localities, you also owe a separate local income tax on top of the state rate.
The nine New York State tax brackets for 2024
The brackets below show the income ranges and rates for the 2024 tax year. These are the ranges used when you file your 2024 return in 2025. The exact dollar amounts shift annually, so if you are filing for 2025 or later, check the New York Department of Taxation and Finance website for that year's brackets.
| Tax Rate | Single Filers | Married Filing Jointly | Head of Household |
|---|---|---|---|
| 4.0% | $0 to $4,450 | $0 to $5,900 | $0 to $5,550 |
| 4.5% | $4,451 to $5,900 | $5,901 to $7,850 | $5,551 to $7,400 |
| 5.85% | $5,901 to $12,450 | $7,851 to $16,550 | $7,401 to $14,600 |
| 6.25% | $12,451 to $21,400 | $16,551 to $28,400 | $14,601 to $21,150 |
| 6.85% | $21,401 to $80,650 | $28,401 to $107,650 | $21,151 to $80,650 |
| 9.65% | $80,651 to $215,400 | $107,651 to $323,200 | $80,651 to $215,400 |
| 10.3% | $215,401 to $1,077,550 | $323,201 to $1,437,550 | $215,401 to $1,077,550 |
| 10.9% | $1,077,551+ | $1,437,551+ | $1,077,551+ |
The brackets for married filing separately are the same as single filers but with lower thresholds. If you file that way, consult the New York Department of Taxation and Finance for the exact ranges.
How progressive tax brackets actually work
A common mistake is thinking that if you earn $30,000, you pay 6.85% on all of it. That is not how it works. Instead, you pay 4% on the first $4,450, then 4.5% on the next $1,450, then 5.85% on the next $6,550, and so on until you reach $30,000. Only the income in each bracket gets taxed at that bracket's rate.
This means your effective tax rate — the percentage you actually pay on your total income — is always lower than your highest bracket rate. For example, a single filer earning $30,000 does not pay 6.85% on the whole amount; they pay roughly 5.2% overall because most of their income falls in lower brackets.
Your marginal tax rate is the rate on your last dollar earned. If you are a single filer earning $30,000, your marginal rate is 6.25% because that is the bracket your income falls into. This matters if you are deciding whether to take on extra work or income — you will owe tax at your marginal rate, not your effective rate.
Local income tax in New York City and other areas
New York City, Yonkers, and a handful of other localities impose their own income tax on top of the state rate. New York City's rate ranges from 3.876% to 3.876% depending on income level (the city uses different brackets than the state). Yonkers' rate is 1.25% to 1.75%.
If you live and work in one of these cities, you owe both the state tax and the local tax. Your employer's payroll system should withhold both automatically. If you are self-employed or have income not subject to withholding, you need to account for both when estimating what you owe.
If you live outside these cities but work inside them, you may still owe local tax on wages earned there. If you live inside but work outside, you typically do not owe the local tax. The rules vary by locality, so check with your city or county tax department if you are unsure.
What income counts toward New York State tax
New York taxes most forms of income: W-2 wages, self-employment income, interest, dividends, capital gains, rental income, and retirement distributions. Some income is exempt or taxed differently. For example, Social Security benefits are generally not taxed by New York State, and certain retirement income may may have access to for a pension exemption.
If you have income from outside New York — such as a pension from another state or investment income — you still owe New York tax on it if you are a New York resident. Nonresidents owe tax only on income earned within New York.
How tax withholding and estimated payments work
If you receive a W-2 paycheck, your employer withholds New York State income tax automatically based on the W-4 form you complete. The amount withheld is an estimate; it may be more or less than what you actually owe. When you file your return, the state compares what was withheld to what you owe and either refunds the difference or bills you.
If you are self-employed, have significant investment income, or receive income without withholding, you may need to make estimated tax payments four times per year. These are quarterly payments to the state to cover the tax you expect to owe. Missing these payments can result in penalties and interest, even if you ultimately pay the full amount when you file.
You can adjust your withholding at any time by submitting a new W-4 to your employer. If you expect to owe more tax than usual, increasing your withholding now means a smaller bill later.
Frequently Asked Questions
Does New York tax Social Security or retirement income?
Social Security is not taxed by New York State. Retirement distributions from pensions, IRAs, and 401(k)s are taxed as income, but New York offers a pension exemption for certain types of retirement income. The rules depend on your age and the source of the income, so check the New York Department of Taxation and Finance website or speak with a tax preparer about your specific situation.
What if I moved to New York partway through the year?
You owe New York State tax only on income earned while you were a resident. When you file, you report your move date and calculate tax based on the income you earned as a New York resident. You may also owe tax to your previous state on income earned there. Both states' tax departments have forms for part-year residents.
How do I know if my withholding is correct?
Run through a tax year and see if you get a refund or owe money when you file. If you consistently owe or consistently get large refunds, your withholding is off. You can adjust it by submitting a new W-4 to your employer. The New York Department of Taxation and Finance website has a withholding calculator to help estimate what you should be paying.
Are there any deductions that reduce my New York taxable income?
New York allows a standard deduction (which varies by filing status and age) or itemized deductions, similar to federal tax. You also may be able to deduct certain expenses if you are self-employed. The state also offers credits for things like property taxes and dependent care. Review the New York Department of Taxation and Finance website or consult a tax preparer to see what applies to your situation.