New York’s tax system is complex, especially when considering the taxes in New York City versus the rest of the state. The state combines a relatively moderate sales tax with an income tax system that increasingly affects high earners. Additionally, NYC levies its own income taxes, leading to some of the highest local rates in the nation. Understanding these nuances is crucial for anyone living or planning to live in the Big Apple.
Understanding the layers of taxation is key to financial planning in NYC.
New York State Income Taxes
New York State employs a progressive income tax system, meaning higher earners pay higher rates. While the top marginal income tax rate is among the highest in the U.S., it only applies to a small percentage of taxpayers.
For the 2024 tax year (filed in 2025), the top rate of 10.9% applies to individuals earning over $25,000,000. Tax rates decrease incrementally for lower income brackets. Joint filers experience the same rates but with bracket thresholds approximately doubled.
2024 State Income Tax Brackets
The following tables detail the New York State income tax brackets for various filing statuses:
| Single Filers |
|---|
| New York Taxable Income |
| $0 – $8,500 |
| $8,500 – $11,700 |
| $11,700 – $13,900 |
| $13,900 – $80,650 |
| $80,650 – $215,400 |
| $215,400 – $1,077,550 |
| $1,077,550 – $5,000,000 |
| $5,000,000 – $25,000,000 |
| $25,000,000+ |
| Married, Filing Jointly |
|---|
| New York Taxable Income |
| $0 – $17,150 |
| $17,150 – $23,600 |
| $23,600 – $27,900 |
| $27,900 – $161,550 |
| $161,550 – $323,200 |
| $323,200 – $2,155,350 |
| $2,155,350 – $5,000,000 |
| $5,000,000 – $25,000,000 |
| $25,000,000+ |
| Married, Filing Separately |
|---|
| New York Taxable Income |
| $0 – $8,500 |
| $8,500 – $11,700 |
| $11,700 – $13,900 |
| $13,900 – $80,650 |
| $80,650 – $215,400 |
| $215,400 – $1,077,550 |
| $1,077,550 – $5,000,000 |
| $5,000,000 – $25,000,000 |
| $25,000,000+ |
| Head of Household |
|---|
| New York Taxable Income |
| $0 – $12,800 |
| $12,800 – $17,650 |
| $17,650 – $20,900 |
| $20,900 – $107,650 |
| $107,650 – $269,300 |
| $269,300 – $1,616,450 |
| $1,616,450 – $5,000,000 |
| $5,000,000 – $25,000,000 |
| $25,000,000+ |
How Much is the New York City Income Tax?
New York City residents face an additional city income tax on top of the state income tax. These rates range from 3.078% to 3.876%, further increasing the tax burden for those living in the five boroughs.
NYC Income Tax Brackets
The following tables show the New York City income tax brackets:
| Single Filers |
|---|
| New York Taxable Income |
| $0 – $12,000 |
| $12,000 – $25,000 |
| $25,000 – $50,000 |
| $50,000+ |
| Married, Filing Jointly |
|---|
| New York Taxable Income |
| $0 – $21,600 |
| $21,600 – $45,000 |
| $45,000 – $90,000 |
| $90,000+ |
| Married, Filing Separately |
|---|
| New York Taxable Income |
| $0 – $12,000 |
| $12,000 – $25,000 |
| $25,000 – $50,000 |
| $50,000+ |
| Head of Household |
|---|
| New York Taxable Income |
| $0 – $14,400 |
| $14,400 – $30,000 |
| $30,000 – $60,000 |
| $60,000+ |
It’s important to note that these rates are applied to your taxable income, which is your income after deductions and exemptions. The standard deduction in New York is $8,000 for single filers and $16,050 for joint filers.
New York Tax Credits
Tax credits directly reduce your tax liability. New York offers numerous tax credits, particularly benefiting low-income households. Examples include the Earned Income Tax Credit (up to $7,430 for families with three or more children) and the Child and Dependent Care Credit (at least 30% of the federal credit).
New York Sales Tax
The base sales tax rate in New York is 4%, but counties can add surcharges, resulting in significantly higher rates depending on location.
Sales Tax Rates by County (January 2025)
| County Name | Maximum Tax Rate |
|---|---|
| Albany County | 8% |
| Allegany County | 8.5% |
| Bronx County | 8.875% |
| Broome County | 8% |
| Cattaraugus County | 8.75% |
| Cayuga County | 8% |
| Chautauqua County | 8% |
| Chemung County | 8% |
| Chenango County | 8% |
| Clinton County | 8% |
| Columbia County | 8.125% |
| Cortland County | 8% |
| Delaware County | 8% |
| Dutchess County | 8.375% |
| Erie County | 8.75% |
| Essex County | 8% |
| Franklin County | 8% |
| Fulton County | 8.25% |
| Genesee County | 8.75% |
| Greene County | 8% |
| Hamilton County | 8.25% |
| Herkimer County | 8.75% |
| Jefferson County | 8% |
| Kings County | 8.875% |
| Lewis County | 8.75% |
| Livingston County | 8.5% |
| Madison County | 8.75% |
| Monroe County | 8% |
| Montgomery County | 8.25% |
| Nassau County | 8.875% |
| New York County | 8.875% |
| Niagara County | 8.75% |
| Oneida County | 8.75% |
| Onondaga County | 8% |
| Ontario County | 8% |
| Orange County | 8.375% |
| Orleans County | 8% |
| Oswego County | 8.75% |
| Otsego County | 8.25% |
| Putnam County | 8.375% |
| Queens County | 8.875% |
| Rensselaer County | 8% |
| Richmond County | 8.875% |
| Rockland County | 8.375% |
| Saratoga County | 8% |
| Schenectady County | 8% |
| Schoharie County | 8% |
| Schuyler County | 8% |
| Seneca County | 8% |
| St Lawrence County | 8% |
| Steuben County | 8.5% |
| Suffolk County | 8.625% |
| Sullivan County | 8.125% |
| Tioga County | 8% |
| Tompkins County | 8% |
| Ulster County | 8.125% |
| Warren County | 8% |
| Washington County | 8% |
| Wayne County | 8% |
| Westchester County | 8.875% |
| Wyoming County | 8.75% |
| Yates County | 8% |
The five New York City counties (New York, Kings, Queens, Bronx, and Richmond) have the highest total sales tax rate in the state at 8.875%, which includes a 0.375% Metropolitan Commuter Transportation District charge.
Exemptions exist for certain products, such as most food sold in grocery stores and clothing/footwear purchases under $110 in New York City.
Other New York Taxes
Beyond income and sales taxes, New York also levies taxes on tobacco, property, estates, gasoline, capital gains, and alcohol.
- Tobacco Tax: Cigarettes face an excise tax of $4.35 per pack of 20, with an additional $1.50 excise tax in New York City.
- Property Tax: Assessed at the county and city level, property tax rates vary significantly. New York City surprisingly has one of the lowest effective rates due to the taxable value of residential property being only 6% of market value.
- Estate Tax: A graduated rate scale applies, ranging from 3.06% to 16% for estates exceeding the exemption threshold ($6.94 million in 2024, increasing to $7.16 million in 2025).
- Gasoline Tax: The Motor Fuel Excise Tax is 25.68 cents per gallon, with an additional Petroleum Business Tax.
- Capital Gains Tax: Taxed as normal income according to the state income tax brackets.
- Alcohol Tax: Liquor is taxed at $6.44 per gallon.
Understanding the full scope of New York’s tax system, including the additional burden of the New York City tax, is essential for effective financial planning.
Estimating your tax obligations in New York can be complex due to varying rates and deductions.
Conclusion
Navigating the intricacies of the New York City tax landscape requires careful consideration of income taxes, sales taxes, and various other levies. By understanding the rates, brackets, and exemptions, residents can better manage their finances and plan for the future. Whether you’re a long-time resident or considering a move to the Big Apple, understanding How Much Is The New York City Tax is a crucial element of your financial well-being.
