Income Tax in New York: Complete Guide 2026
Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.
Income Tax in New York: Complete Guide 2026
Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.
New York State imposes a graduated income tax with a top marginal rate of ~10.90% on income exceeding ~$25 million, one of the highest in the nation. New York City residents face an additional city income tax of up to ~3.876%, and Yonkers residents pay a surcharge of ~16.75% of their state tax. When combined with federal taxes, New York City residents can face a total marginal rate exceeding ~50%, making tax planning critical for high earners in the Empire State.
New York State Income Tax Brackets (2026)
| Taxable Income (Single) | Tax Rate |
|---|---|
| ~$0 — ~$8,500 | ~4.00% |
| ~$8,501 — ~$11,700 | ~4.50% |
| ~$11,701 — ~$13,900 | ~5.25% |
| ~$13,901 — ~$80,650 | ~5.50% |
| ~$80,651 — ~$215,400 | ~6.00% |
| ~$215,401 — ~$1,077,550 | ~6.85% |
| ~$1,077,551 — ~$5,000,000 | ~9.65% |
| ~$5,000,001 — ~$25,000,000 | ~10.30% |
| Over ~$25,000,000 | ~10.90% |
New York City Income Tax Brackets (Additional)
| NYC Taxable Income | Rate |
|---|---|
| ~$0 — ~$12,000 | ~3.078% |
| ~$12,001 — ~$25,000 | ~3.762% |
| ~$25,001 — ~$50,000 | ~3.819% |
| Over ~$50,000 | ~3.876% |
Combined Tax Estimates (NYC Resident, Single)
| Gross Income | Approx. NYS + NYC Tax | Combined Effective Rate |
|---|---|---|
| ~$50,000 | ~$3,900 | ~7.80% |
| ~$75,000 | ~$5,900 | ~7.87% |
| ~$100,000 | ~$8,150 | ~8.15% |
| ~$150,000 | ~$12,600 | ~8.40% |
| ~$250,000 | ~$21,700 | ~8.68% |
How New York Income Tax Works
Standard Deduction
New York provides its own standard deduction, separate from the federal amount:
| Filing Status | NY Standard Deduction |
|---|---|
| Single | ~$8,000 |
| Married Filing Jointly | ~$16,050 |
| Head of Household | ~$11,200 |
| Married Filing Separately | ~$8,000 |
Starting Point: Federal AGI
New York begins with federal adjusted gross income, then applies New York additions (such as interest from other states’ bonds) and subtractions (such as certain pension income). The standard deduction or itemized deductions are then applied.
Retirement Income
New York exempts up to ~$20,000 per person of qualifying pension and annuity income from state tax. This applies to government pensions (federal, state, and local) and private employer pensions. Social Security benefits are fully exempt from New York State and New York City income taxes.
New York City Residency
NYC’s additional income tax applies to residents of the five boroughs (Manhattan, Brooklyn, Queens, The Bronx, Staten Island). Nonresidents who work in NYC do not pay NYC income tax (unlike some other local tax jurisdictions). This creates a meaningful incentive for NYC workers to live outside the city limits.
Credits and Deductions
- NY Earned Income Credit: ~30% of the federal EITC
- NYC Earned Income Credit: An additional ~5% of the federal EITC for NYC residents
- Child and Dependent Care Credit: Up to ~$2,310 per qualifying individual
- College Tuition Credit/Deduction: Up to ~$400 credit or ~$10,000 deduction for undergraduate tuition at qualifying institutions
- Property Tax Relief Credit (STAR): Enhanced STAR for seniors 65+ provides significant property tax savings
- 529 Plan Deduction: Up to
$5,000 ($10,000 for married filing jointly) for contributions to New York’s 529 plan
Comparison to Neighboring States
| State | Top Income Tax Rate | NYC/Local Add-On | Combined Top Rate |
|---|---|---|---|
| New York | ~10.90% | ~3.876% (NYC) | ~14.776% |
| New Jersey | ~10.75% | None | ~10.75% |
| Connecticut | ~6.99% | None | ~6.99% |
| Pennsylvania | ~3.07% | ~3.75% (Phila.) | ~6.82% |
| Massachusetts | ~9.00% | None | ~9.00% |
New York’s combined state and city rate is the highest in the region and among the highest nationally. Neighboring states offer significantly lower income tax burdens.
Tips for Minimizing Your New York Income Tax
-
Maximize the ~$20,000 pension exclusion if you receive qualifying pension income. This applies per person, so a married couple can exclude ~$40,000 combined.
-
Contribute to New York’s 529 plan for the
$5,000 deduction ($10,000 for couples) from state taxable income. -
Claim the college tuition credit of up to ~$400 per student for undergraduate education at qualifying institutions.
-
Use the NY earned income credit (~30% of federal EITC) plus the NYC credit (~5%) if you are a city resident. Combined, these can provide substantial refunds for lower-income households.
-
Consider residency planning if you work in NYC but could live outside the city. Moving to New Jersey, Connecticut, or suburban New York eliminates the ~3.876% NYC income tax.
-
Apply for STAR if you are a homeowner, and Enhanced STAR if you are 65 or older with qualifying income.
Key Takeaways
- New York’s state income tax ranges from ~4.00% to ~10.90% across nine brackets
- NYC residents face an additional ~3.078% to ~3.876% city income tax
- Social Security is fully exempt; pensions are exempt up to ~$20,000 per person
- The NY earned income credit (~30% of federal EITC) is among the most generous nationally
- New York’s combined top rate (~14.776% for NYC residents) is the highest in the nation
- 529 plan contributions offer up to ~$5,000 in state tax deductions per filer
Next Steps
- Federal Income Tax Guide 2026 — See how federal and New York taxes combine
- State Income Tax Rates Comparison 2026 — Compare New York to all other states
- Tax Bracket Calculator — Estimate your NYS and NYC tax liability
- Self-Employment Tax Guide — Understand self-employment tax in New York
- Find a CPA Near You — Connect with a New York tax professional