New York has multiple tax rates that depend on your income level and type of income

New York State charges income tax on wages, self-employment income, investment gains, and other earnings. The rate you pay depends on how much you earn in a year. New York also has sales tax, property tax, and other taxes that work differently. This guide covers the main taxes you will encounter and the rates that apply to each.

Income tax rates in New York State range from 4% to 10.9% for residents, depending on your tax bracket. The state also taxes capital gains (profit from selling investments) at rates up to 10.9%. New York City residents pay an additional city income tax on top of state tax, ranging from 3.876% to 4.5%. The exact amount you owe depends on your total income for the year and where you live within the state.

Key Takeaways

  • New York State income tax brackets range from 4% to 10.9%, with higher earners paying the top rate on income above $231,250 for single filers.
  • New York City residents pay an additional city income tax of 3.876% to 4.5% on top of state tax.
  • Sales tax in New York ranges from 8% to 8.875% depending on the county, with some items exempt including groceries and prescription medications.
  • Property tax rates vary by county and municipality, with no statewide rate; your local assessor determines the assessed value and your town sets the tax rate.
  • Tax brackets and rates change yearly, so the income thresholds that determine your rate are different each year.

New York State income tax brackets for 2024

New York State uses a progressive tax system, meaning the rate increases as your income increases. You do not pay the top rate on all your income — only on the portion that falls within each bracket. For example, if you are a single filer earning $100,000, you pay 4% on the first portion, then higher rates on each bracket above that, until you reach your total income.

For the 2024 tax year, single filers pay 4% on income up to $11,200, then 4.5% on income from $11,200 to $13,900, and the rate continues to increase through eight brackets, reaching 10.9% on income over $231,250. Married couples filing jointly have higher thresholds at each bracket. The brackets adjust each year for inflation, so the income amounts that trigger each rate change annually. You can find the current year's brackets on the New York Department of Taxation and Finance website.

New York City income tax for residents

If you live in New York City and work there, you pay city income tax in addition to state income tax. The city tax is separate from state tax and uses its own brackets. City rates range from 3.876% on the lowest incomes to 4.5% on incomes over $90,000 for single filers. This means a New York City resident in the top state and city brackets pays a combined rate of 15.4% on income above $231,250.

You report city income tax on Form NYC-1, which you file along with your federal and state returns. If your employer is in New York City but you live outside the city, you typically do not owe city tax. If you work outside the city but live there, you still owe city tax on your earnings. The city has its own rules about who owes tax, so check the Department of Finance website if your situation is unclear.

Sales tax rates by county

New York State sales tax starts at 4%, but counties and cities can add their own local sales tax on top of that. The combined rate you pay at checkout depends on where you make the purchase. Most of New York State has a combined sales tax between 8% and 8.875%. New York City's rate is 8.875%. Some counties have lower rates — for example, parts of upstate New York may be 8% or lower.

Certain items are exempt from sales tax in New York, including most groceries, prescription medications, and medical equipment. Clothing and footwear under $110 per item are also exempt. Restaurant meals, prepared foods, and non-prescription items are taxed. The exemptions apply statewide, so a grocery purchase is not taxed anywhere in New York, but a prepared meal is taxed everywhere.

Property tax and how it is calculated

New York has no statewide property tax rate. Instead, each county, town, city, and school district sets its own rate. Your property tax bill is calculated by multiplying your home's assessed value by the local tax rate. The assessed value is usually a percentage of the market value of your home, and that percentage varies by locality. A home worth $400,000 in one town might have a very different tax bill than an identical home in another town.

Your local assessor determines the assessed value of your property, usually every few years or when you sell. You can challenge the assessment if you believe it is too high. The tax rate is set by your town or city government and applies to all properties in that jurisdiction. Property tax bills are mailed annually, and you can pay in installments or in full. If you own property in New York, your tax bill will show the assessed value, the tax rate, and the total amount due.

Other taxes you may owe in New York

New York charges tax on motor vehicles, with rates based on the vehicle's value and age. The tax is collected when you register or renew your registration. New York also has an estate tax on inheritances over a certain amount, though the threshold is high enough that most estates do not owe it. Businesses pay corporate income tax, and self-employed individuals pay self-employment tax to fund Social Security and Medicare, which is a federal tax.

If you own rental property or operate a business in New York, you may owe additional taxes beyond income tax. Rental income is taxed as ordinary income. Business income is also taxed, and you may owe estimated tax payments quarterly if you do not have taxes withheld from a paycheck. Speak with a tax professional if you have income from sources other than wages, as the rules vary by situation.

How to find your specific tax rate

Your specific tax rate depends on your filing status (single, married, head of household), your total income for the year, and where you live. The New York Department of Taxation and Finance publishes tax tables each year that show the exact tax owed at each income level. You can also use the state's tax calculator on their website to estimate your liability. If you file taxes with a professional or software, the program will calculate your rate based on the information you enter.

For sales tax, you can look up the rate for any address in New York using the Department of Taxation and Finance's online tool. For property tax, contact your local assessor's office or town clerk to learn the rate in your jurisdiction. Tax rates change yearly, so rates from last year will not match this year's rates. Bookmark the state tax department website if you need to check rates regularly.

Frequently Asked Questions

Does New York tax Social Security benefits?

New York does not tax Social Security benefits for most residents. If your only income is Social Security, you will not owe New York State income tax. If you have other income in addition to Social Security, the state does not count the Social Security portion as taxable income, though your other income may still be taxed.

What is the difference between state and city income tax?

State income tax goes to New York State government. City income tax goes to New York City government. If you live in New York City, you pay both. If you live elsewhere in New York State, you pay only state tax. The rates are separate and use different brackets, so you calculate each one independently on your tax return.

Are groceries taxed in New York?

Most groceries are not taxed in New York. Items like bread, milk, vegetables, and meat are exempt. Prepared foods, restaurant meals, and items like candy and soda are taxed. If you are unsure whether a specific item is taxed, ask the cashier or check the receipt — taxed items will show the sales tax amount.

How often do New York tax rates change?

Income tax brackets adjust yearly for inflation, so the income thresholds change each January. Tax rates themselves (the percentages) change less often and require action by the state legislature. Sales tax rates can change when counties or cities vote to adjust them, but this is not annual. Property tax rates are set by local governments each year as part of the budget process.

Can I deduct New York State taxes on my federal return?

You can deduct state and local taxes (SALT) on your federal return, but only up to $10,000 per year total. This limit applies to income tax, sales tax, and property tax combined. If you live in a high-tax area, you may hit this limit and not be able to deduct all your state and local taxes on your federal return.