New York City is one of the few cities that levies its own income tax on residents and those with New York sourced income, on top of what New York State charges in income tax.
This may come as a shock to those living in states with no income tax, such as Florida, where the state constitution prohibits an income tax. As a result, it’d be impossible for a local municipality like Miami-Dade County to unilaterally impose a county income tax.
With that said, many people still choose to make New York their home despite rising crime, cost of living, homelessness, taxes and a general deterioration in public services. For example, many young people choose to live in New York for its gritty vibrancy, nightlife and job opportunities in finance and technology.
The NYC income tax is calculated on your NYS income tax return, and while your state and local taxes are deductible up to $10,000 against your federal taxable income, the reverse is not true. This means that the federal income tax you pay isn’t deductible against your NYS and NYC taxable income.
Table of Contents:
NYC tax brackets
New York City income tax rates vary from 3.078% to 3.876% of individuals’ New York adjusted gross income, depending on your tax bracket and what status you are filing. Remember that this tax is in addition to the state income tax that New York State charges.
Source: 2023 NYS Instructions for Form IT-2105
Married filing joint returns and qualifying widow(er)s
| Taxable income: | The tax is: |
| Not over $21,600 | 3.078% of NYC taxable income |
| Over $21,600 but not over $45,000 | $665 plus 3.762% of excess over $21,600 |
| Over $45,000 but not over $90,000 | $1,545 plus 3.819% of excess over $45,000 |
| Over $90,000 | $3,264 plus 3.876% of excess over $90,000 |
Heads of households
| Taxable income: | The tax is: |
| Not over $14,400 | 3.078% of NYC taxable income |
| Over $14,400 but not over $30,000 | $443 plus 3.762% of excess over $14,400 |
| Over $30,000 but not over $60,000 | $1,030 plus 3.819% of excess over $30,000 |
| Over $60,000 | $2,176 plus 3.876% of excess over $60,000 |
Single and married filing separately
| Taxable income: | The tax is: |
| Not over $12,000 | 3.078% of NYC taxable income |
| Over $12,000 but not over $25,000 | $369 plus 3.762% of excess over $12,000 |
| Over $25,000 but not over $50,000 | $858 plus 3.819% of excess over $25,000 |
| Over $50,000 | $1,813 plus 3.876% of excess over $50,000 |
Are there any NYC income tax credits?
While there are no deductions available against your NYC income tax, there are a few tax credits that can reduce your taxes through your NYS income tax return. These include:
-
NYC School Tax Credit – Total household income limit of $250,000; $63 credit for individuals and $125 for those filing jointly. You cannot be claimed as a dependent on another return.
-
NYC Household Credit – Between $15 to $30 in credit if you cannot be claimed as a dependent on another return. Additional credits available for each dependent you claim.
-
NYC Earned Income Credit – 5% of your allowable federal earned income tax credit. NYS has a similar earned income tax credit.
-
NYC Child and Dependent Care Credit – Child care expenses for children under age 4 if you make under $30,000; potential eligibility for up to 75% of your NYS Dependent Care Credit.
-
NYC Real Property Credit – Available to owners and renters who reside in real property that is not exempt from real property taxes. Credit of up to $500 if you make less than $200,000.
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New York State income tax rates vary from 4% to 10.9% of individuals’ New York adjusted gross income, depending on your tax bracket and what status you are filing. Remember that this tax is in addition to the income tax that New York City charges.
Per the New York City Department of Finance, the NYS income tax brackets are as follows:
Single and married filing separately
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
4% |
$0 to $8,500. |
4% of taxable income. |
|
4.5% |
$8,501 to $11,700. |
$340 plus 4.5% of the amount over $8,500. |
|
5.25% |
$11,701 to $13,900. |
$484 plus 5.25% of the amount over $11,700. |
|
5.5% |
$13,901 to $80,650. |
$600 plus 5.85% of the amount over $13,900. |
|
6% |
$80,651 to $215,400. |
$4,504 plus 6.25% of the amount over $80,650. |
|
6.85% |
$215,401 to $1,077,550. |
$12,926 plus 6.85% of the amount over $215,400. |
|
9.65% |
$1,077,551 to $5,000,000. |
$71,984 plus 9.65% of the amount over $1,077,550. |
|
10.30% |
$5,000,001 to $25,000,000. |
$450,500 plus 10.30% of the amount over $5,000,000. |
|
10.90% |
$25,000,001 and over. |
$2,510,500 plus 10.90% of the amount over $25,000,000. |
Married filing jointly or qualifying widow(er)
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
4% |
$0 to $17,150. |
4% of taxable income. |
|
4.5% |
$17,151 to $23,600. |
$686 plus 4.5% of the amount over $17,150. |
|
5.25% |
$23,601 to $27,900. |
$976 plus 5.25% of the amount over $23,600. |
|
5.5% |
$27,901 to $161,550. |
$1,202 plus 5.85% of the amount over $27,900. |
|
6% |
$161,551 to $323,200. |
$9,021 plus 6.25% of the amount over $161,550. |
|
6.85% |
$323,201 to $2,155,350. |
$19,124 plus 6.85% of the amount over $323,200. |
|
9.65% |
$2,155,351 to $5,000,000. |
$144,626 plus 9.65% of the amount over $2,155,350. |
|
10.30% |
$5,000,001 to $25,000,000. |
$419,135 plus 10.30% of the amount over $5,000,000. |
|
10.90% |
$25,000,001 and over. |
$2,479,135 plus 10.90% of the amount over $25,000,000. |
Head of household
|
Tax rate |
Taxable income bracket |
Tax owed |
|---|---|---|
|
4% |
$0 to $12,800. |
4% of taxable income. |
|
4.5% |
$12,801 to $17,650. |
$512 plus 4.5% of the amount over $12,800. |
|
5.25% |
$17,651 to $20,900. |
$730 plus 5.25% of the amount over $17,650. |
|
5.5% |
$20,901 to $107,650. |
$901 plus 5.85% of the amount over $20,900. |
|
6% |
$107,651 to $269,300. |
$5,976 plus 6.25% of the amount over $107,650. |
|
6.85% |
$269,301 to $1,616,450. |
$16,079 plus 6.85% of the amount over $269,300. |
|
9.65% |
$1,616,451 to $5,000,000. |
$108,359 plus 9.65% of the amount over $1,616,450. |
|
10.30% |
$5,000,001 to $25,000,000. |
$434,871 plus 10.30% of the amount over $5,000,000. |
|
10.90% |
$25,000,001 and over. |
$2,494,871 plus 10.90% of the amount over $25,000,000. |
Contrary to what most casual observers will tell you, taxpayers cannot simply live in NYC for 182 days or fewer to avoid either the NYC or NYS income taxes. In fact, the 182 day test is meant to automatically ensnare you if you fail, i.e. to make it easier for you to lose a residency audit. If you pass the 182 day test, it does not mean that you will pass a residency audit, it simply means that you do not lose!
For example, if you maintain a residence in New York and you’ve been in New York for 183 days or more, you automatically owe New York income tax on all your taxable income.
If you maintain a residence in New York such as a pied-a-terre and are claiming to be a part-time resident (i.e. 182 days or less), with your primary residence being in another state, then you’ll have to undergo multiple other tests to determine whether New York really isn’t your primary residence.
For example, New York’s notoriously aggressive auditors might check your cellphone records, interview your doormen and compare the sizes of your New York vs say Florida homes. They might check which home you keep your artwork and near and dear heirlooms in. They may check where your dentist and physicians are based.
So if you maintain a residence in New York, be prepared to thoroughly defend your case that you’re a non-resident, and thus not liable for New York world-wide taxation on all your income.
Pro Tip: Are high income taxes driving New Yorkers to move to Florida? How does that argument make sense since Florida’s always had low taxes and sunshine? Read our analysis of the pros and cons of living in Miami to learn more!
