New York State Tax Rate on Income

New York State Tax Rate on Income – New York State imposes one of the highest progressive state income taxes in the U.S., with rates ranging from 4% to 10.9% for tax year 2025 (returns filed in 2026). Understanding the New York State tax rate on income is essential for residents, part-year residents, and non-residents with New York-source income. This guide uses the latest official data to break down current brackets, how taxes are calculated, additional local taxes in NYC and Yonkers, and practical filing tips.

Understanding New York State Income Tax

New York State taxes personal income for full-year residents on all income, regardless of source. Part-year residents and non-residents pay on New York-sourced income only. The state uses your New York adjusted gross income (NY AGI), which starts from federal AGI with specific additions or subtractions (such as state and local tax refunds or certain deductions).

The tax is progressive: higher income levels are taxed at higher marginal rates. For taxable income over $107,650, New York applies a tax benefit recapture (supplemental tax) so many high earners effectively pay the top rate on all income.

Tax returns for 2025 income are due April 15, 2026 (or the next business day if it falls on a weekend/holiday).

2025 New York State Income Tax Rates and Brackets

New York has nine marginal tax brackets for 2025. Rates apply to taxable income after deductions and exemptions. Here are the official brackets and exact computation formulas by filing status.

Single or Married Filing Separately

  • 4%: $0 – $8,500 → 4% of taxable income
  • 4.5%: $8,501 – $11,700 → $340 + 4.5% of excess over $8,500
  • 5.25%: $11,701 – $13,900 → $484 + 5.25% of excess over $11,700
  • 5.5%: $13,901 – $80,650 → $600 + 5.5% of excess over $13,900
  • 6%: $80,651 – $215,400 → $4,271 + 6% of excess over $80,650
  • 6.85%: $215,401 – $1,077,550 → $12,356 + 6.85% of excess over $215,400
  • 9.65%: $1,077,551 – $5,000,000 → $71,413 + 9.65% of excess over $1,077,550
  • 10.3%: $5,000,001 – $25,000,000 → $449,929 + 10.3% of excess over $5,000,000
  • 10.9%: $25,000,001 and over → $2,509,929 + 10.9% of excess over $25,000,000

Married Filing Jointly or Qualifying Surviving Spouse

  • 4%: $0 – $17,150 → 4% of taxable income
  • 4.5%: $17,151 – $23,600 → $686 + 4.5% of excess over $17,150
  • 5.25%: $23,601 – $27,900 → $976 + 5.25% of excess over $23,600
  • 5.5%: $27,901 – $161,550 → $1,202 + 5.5% of excess over $27,900
  • 6%: $161,551 – $323,200 → $8,553 + 6% of excess over $161,550
  • 6.85%: $323,201 – $2,155,350 → $18,252 + 6.85% of excess over $323,200
  • 9.65%: $2,155,351 – $5,000,000 → $143,754 + 9.65% of excess over $2,155,350
  • 10.3%: $5,000,001 – $25,000,000 → $418,263 + 10.3% of excess over $5,000,000
  • 10.9%: $25,000,001 and over → $2,478,263 + 10.9% of excess over $25,000,000

Head of Household

  • 4%: $0 – $12,800 → 4% of taxable income
  • 4.5%: $12,801 – $17,650 → $512 + 4.5% of excess over $12,800
  • 5.25%: $17,651 – $20,900 → $730 + 5.25% of excess over $17,650
  • 5.5%: $20,901 – $107,650 → $901 + 5.5% of excess over $20,900
  • 6%: $107,651 – $269,300 → $5,672 + 6% of excess over $107,650
  • 6.85%: $269,301 – $1,616,450 → $15,371 + 6.85% of excess over $269,300
  • 9.65%: $1,616,451 – $5,000,000 → $107,651 + 9.65% of excess over $1,616,450
  • 10.3%: $5,000,001 – $25,000,000 → $434,163 + 10.3% of excess over $5,000,000
  • 10.9%: $25,000,001 and over → $2,494,163 + 10.9% of excess over $25,000,000

Note: If your New York taxable income is $107,650 or less, you may use the simplified tax tables on Form IT-201 instead of these formulas.

New York City and Yonkers Local Income Taxes

NYC residents pay an additional city income tax (in addition to state tax). Rates for 2025 range from 3.078% to 3.876% and are also progressive but much flatter.

Yonkers residents pay a supplemental Yonkers city income tax (typically around 0.5%–1%, depending on exact rules—check Form Y-204 or IT-201 instructions). These local taxes are calculated separately but reported on the same state return.

Who Must Pay New York State Income Tax?

  • Full-year residents: All income worldwide.
  • Part-year residents: Income earned while a New York resident plus New York-source income.
  • Non-residents: Only New York-source income (wages from NY work, rental income from NY property, etc.).
  • NYC/Yonkers residents: Add local taxes if applicable.

You must file a New York return if your New York gross income exceeds the filing threshold (generally $4,000–$8,000 depending on status and age, but check current IT-201 instructions).

How New York State Tax Interacts with Federal Taxes?

New York starts with your federal AGI. You cannot deduct federal income taxes, but certain federal deductions (like student loan interest) may have NY-specific rules. State taxes are deductible on your federal return (subject to the $10,000 SALT cap). High earners often face combined federal + state + local effective rates exceeding 40–50%.

Key Deductions, Exemptions, and Credits That Lower Your New York Tax Bill

Common ways to reduce taxable income include:

  • Standard deduction (NY has its own, often aligned but not identical to federal).
  • Itemized deductions (with NY modifications).
  • New York-specific credits like the Empire State Child Credit, Earned Income Tax Credit, or college tuition credit.
  • Retirement income exclusions for seniors.

Always review the latest IT-201 instructions for 2025-specific rules.

Tips for Filing Your 2025 New York State Tax Return

  1. Use free e-file options through the NY Tax Department or IRS Free File.
  2. Double-check residency status and allocate part-year income correctly.
  3. Withholding may have been updated in late 2025 to reflect minor rate adjustments—verify your W-2.
  4. File by April 15, 2026, or request an extension (payment still due).
  5. Use the official NY Tax Department calculator or software like TurboTax that imports federal data.

New York State Tax Rate Changes for 2026 and Future Years

As of April 2026, the 2025 rates above remain in effect for the current filing season. New York has enacted certain income tax rate reductions and withholding table updates for tax year 2026 (income earned in 2026, filed in 2027). These primarily affect lower brackets and withholding calculations. Monitor the official Tax.NY.gov site for the 2026 rate schedule when released.

Frequently Asked Questions About New York State Tax Rate on Income

What is the highest New York State tax rate on income?
10.9% on income over $25 million (single or joint).

Do I pay New York tax if I work in NY but live elsewhere?
Yes—non-residents pay on New York-sourced wages and other NY income.

How does the New York tax rate compare nationally?
New York has one of the highest top marginal rates in the country, behind only a few states like California and Hawaii.

Where can I find the official 2025 tax tables?
Directly from the New York State Department of Taxation and Finance at tax.ny.gov (search “2025 tax tables IT-201”).

For the most accurate calculation, always consult a tax professional or the official Form IT-201 instructions, as individual circumstances (credits, deductions, and residency) can significantly affect your final New York State tax rate on income. Stay updated via tax.ny.gov for any last-minute 2026 changes.