State Taxes

Taxes in New York: State Tax Guide 2026

Updated 2026-03-10

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.

Taxes in New York: State Tax 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 consistently ranks among the highest-tax states in the nation. Between state income tax, New York City’s local income tax, above-average property taxes, and high sales tax rates, residents face a significant combined burden. Understanding the details can help you plan effectively.

New York State Income Tax Rates (2026)

New York uses a progressive income tax system. Rates for single filers:

Tax RateTaxable Income Range
4.00%$0 – ~$8,500
4.50%~$8,501 – ~$11,700
5.25%~$11,701 – ~$13,900
5.50%~$13,901 – ~$80,650
6.00%~$80,651 – ~$215,400
6.85%~$215,401 – ~$1,077,550
9.65%~$1,077,551 – ~$5,000,000
10.30%~$5,000,001 – ~$25,000,000
10.90%Over ~$25,000,000

New York City Income Tax (Additional)

NYC residents pay an additional local income tax:

Tax RateTaxable Income Range
3.078%$0 – ~$12,000
3.762%~$12,001 – ~$25,000
3.819%~$25,001 – ~$50,000
3.876%Over ~$50,000

Combined top rate for NYC residents: 10.90% (state) + 3.876% (city) = 14.776% — the highest combined state and local income tax rate in the nation.

Yonkers Surcharge

Yonkers residents pay a surcharge equal to 16.75% of their state tax liability.

New York Standard Deduction (2026)

Filing StatusAmount
Single~$8,700
Married Filing Jointly~$17,400
Head of Household~$12,800

Notable New York Tax Credits

  • Earned Income Credit: 30% of the federal EITC amount
  • Child and Dependent Care Credit: Up to 110% of the federal credit (for lower incomes)
  • Real Property Tax Credit: For homeowners and renters with household income under ~$18,000
  • College Tuition Credit/Deduction: Up to ~$400 credit or ~$10,000 deduction per student
  • NYC School Tax Credit: ~$63 (single) / ~$125 (married) for NYC residents
  • NYC Enhanced Real Property Tax Credit: For qualifying NYC homeowners

Sales Tax

ComponentRate
State base rate4.00%
Average combined (state + local)8.52%
New York City combined rate8.875%

NYC adds 4.5% local tax plus a 0.375% Metropolitan Commuter Transportation District surcharge on top of the 4% state rate.

Exempt: Clothing and footwear under $110 per item (in NYC and several other jurisdictions), most groceries, prescription drugs.

Property Tax

MetricAmount
Average effective rate1.40%
National average0.99%
Rank among states8th highest

Property taxes vary widely across New York State:

  • NYC: Effective rates appear lower (~0.8%) due to assessment methodology, but the high home values result in large absolute tax bills
  • Long Island/Westchester: Among the highest property taxes in the nation (effective rates 1.5%–2.5%)
  • Upstate: Moderate rates but applied to lower-value homes

STAR Program

The School Tax Relief (STAR) program provides property tax relief:

  • Basic STAR: Available for owner-occupied primary residences (income limit ~$500,000)
  • Enhanced STAR: For homeowners 65+ with income under ~$98,000

How New York Compares to National Averages

Tax TypeNew YorkNational Average
Top income tax rate10.90% (+ 3.876% NYC)~5.0%
Effective rate (~$75K single)~5.5% (state only)~3.5%
Sales tax (combined avg)8.52%6.6%
Property tax (effective)1.40%0.99%
Overall tax burden rank#1 highest—

Who Benefits from Living in New York

New York may work well for:

  • Workers in high-paying industries where NYC salaries are significantly higher than other cities
  • Lower-income residents who benefit from generous state EITC (30% of federal), property tax credits, and social programs
  • Renters in rent-stabilized apartments (property tax is the landlord’s burden)
  • Those who value public transit, eliminating vehicle costs

New York may be costly for:

  • High earners, especially those in NYC paying the combined 14.776% top rate
  • Homeowners in the NYC suburbs (Long Island, Westchester) with extreme property taxes
  • Self-employed individuals facing state income tax on top of federal SE tax
  • Remote workers who could earn similar salaries in lower-tax states
  • Retirees with significant pension or investment income (taxed at state level, though Social Security is exempt)

New York-Specific Considerations

  • Social Security is exempt from New York State income tax
  • Pensions from NY state/local government are exempt (up to ~$20,000 for qualifying private pensions)
  • Convenience of the employer rule — NYC may tax remote workers whose employer is based in NYC, even if they work from another state
  • No state estate tax portability — New York’s estate tax exemption (~$7.16 million in 2026) has a “cliff” — if your estate exceeds the exemption by more than 5%, the entire estate is taxable
  • NYC Unincorporated Business Tax (UBT) — Self-employed NYC residents may owe an additional 4% on business income over ~$95,000

Key Takeaways

  • New York State’s top income tax rate is 10.90%; NYC residents pay up to an additional 3.876%
  • The combined state and local income tax rate for NYC high earners is the highest in the nation at 14.776%
  • Property taxes are well above average, especially on Long Island and in Westchester County
  • Generous state credits (EITC at 30% of federal, property tax credits) benefit lower-income residents
  • Social Security income is exempt from state tax
  • The convenience of the employer rule can create tax obligations for out-of-state remote workers

Next Steps