Key Takeaways for New York Taxpayers
- New York State has a progressive income tax system with rates ranging from 4% to 10.9%.
- New York City residents pay an additional local income tax ranging from 3.078% to 3.876%.
- Yonkers residents are subject to a resident income tax surcharge of 16.75% of their net state tax.
- The standard deduction for 2025 is $8,000 for single filers and $16,050 for married joint filers.
Understanding Your New York Paycheck
If you live or work in the Empire State, understanding your paycheck can be a bit more complex than in other states. New York has a multi-layered tax system that includes federal taxes, state taxes, and potentially local taxes depending on where you reside. This New York Paycheck Calculator is designed to help you estimate your net pay by accounting for all these factors, including the specific levies for New York City and Yonkers residents.
Whether you are starting a new job in Manhattan, moving to Buffalo, or just trying to budget for the upcoming year, knowing how much of your salary will actually land in your bank account is crucial. This guide will break down the components of your New York paycheck, explain the tax brackets, and offer tips on how to maximize your take-home pay.
New York State Income Tax Brackets (2025)
New York State employs a progressive income tax system. This means that as your income increases, the rate at which it is taxed also increases. For the 2025 tax year (which you will file in 2026), there are nine tax brackets.
It is important to note that New York also has a "tax benefit recapture" rule for high earners. If your New York adjusted gross income exceeds $107,650, you may have to pay a supplemental tax that effectively eliminates the benefit of the lower tax brackets, meaning your entire income could be taxed at the highest applicable rate.
Single Filers and Married Filing Separately
| Taxable Income Over | But Not Over | Tax Rate |
|---|---|---|
| $0 | $8,500 | 4.00% |
| $8,500 | $11,700 | 4.50% |
| $11,700 | $13,900 | 5.25% |
| $13,900 | $80,650 | 5.50% |
| $80,650 | $215,400 | 6.00% |
| $215,400 | $1,077,550 | 6.85% |
| $1,077,550 | $5,000,000 | 9.65% |
| $5,000,000 | $25,000,000 | 10.30% |
| $25,000,000 | And over | 10.90% |
Married Filing Jointly
| Taxable Income Over | But Not Over | Tax Rate |
|---|---|---|
| $0 | $17,150 | 4.00% |
| $17,150 | $23,600 | 4.50% |
| $23,600 | $27,900 | 5.25% |
| $27,900 | $161,550 | 5.50% |
| $161,550 | $323,200 | 6.00% |
| $323,200 | $2,155,350 | 6.85% |
| $2,155,350 | $5,000,000 | 9.65% |
| $5,000,000 | $25,000,000 | 10.30% |
| $25,000,000 | And over | 10.90% |
New York City Income Tax
If you live in one of the five boroughs of New York City (Bronx, Brooklyn, Manhattan, Queens, or Staten Island), you are subject to an additional personal income tax. Like the state tax, the city tax is progressive.
For 2025, the NYC tax rates range from 3.078% to 3.876%. This is a significant addition to your tax burden and is one of the reasons why the cost of living in NYC is higher than in other parts of the state. The tax funds essential city services, including the NYPD, FDNY, and public schools.
- Lowest Bracket: 3.078% on income up to $12,000 (Single) or $21,600 (Married Jointly).
- Highest Bracket: 3.876% on income over $50,000 (Single) or $90,000 (Married Jointly).
Yonkers Resident Income Tax Surcharge
Residents of Yonkers also face a local income tax, but it is calculated differently than NYC's. Instead of separate brackets based on income, the Yonkers resident tax is a surcharge on your New York State tax liability.
For 2025, the Yonkers resident income tax surcharge rate is 16.75% of your net state tax. This means if you owe $1,000 in NY State income tax, you would owe an additional $167.50 to the City of Yonkers. This is significantly different from how NYC calculates its tax, making Yonkers a unique case in the Hudson Valley area.
The "Convenience of the Employer" Rule
Remote Work Warning
New York has an aggressive tax policy regarding remote workers known as the "Convenience of the Employer" rule.
If you work for a New York-based company but live in another state (like Connecticut or New Jersey) and telecommute, New York may still tax your income **as if you were working in New York**. Unless your home office is a "bona fide employer office" (meeting strict criteria), your days working from home for your own convenience are counted as days worked in New York.
This often leads to double taxation disputes, although most neighboring states offer a credit for taxes paid to NY. However, if your home state has a lower tax rate than NY, you end up paying the higher NY rate.
Additional Deductions: PFL and SDI
New York paychecks often have two specific deductions that you won't see in many other states:
Paid Family Leave (PFL)
For 2024, the contribution rate is 0.373% of your gross wages per pay period. The maximum annual contribution is capped at $333.25. This insurance provides paid time off to bond with a new child, care for a sick family member, or assist when a spouse is deployed.
State Disability Insurance (SDI)
This is a small deduction, typically capped at $0.60 per week. It provides short-term wage replacement if you become disabled due to an off-the-job injury or illness. Employers can cover this cost, but many pass it on to employees.
Federal Taxes and FICA
In addition to state and local taxes, all US employees are subject to federal taxes. These taxes fund national programs and services, including defense, infrastructure, and social safety nets. Understanding how these are calculated is essential for accurate net pay estimation.
Federal Income Tax
This is a progressive tax with rates ranging from 10% to 37%. Your bracket depends on your taxable income and filing status. Our calculator uses the 2025 federal tax brackets to estimate this liability. The more you earn, the higher the percentage of tax you pay on the top portion of your income.
FICA Taxes
FICA stands for the Federal Insurance Contributions Act and funds Social Security and Medicare. These are mandatory payroll deductions for most employees.
- Social Security: 6.2% of your earnings up to the wage base limit ($176,100 for 2025). This tax funds retirement, disability, and survivorship benefits for millions of Americans.
- Medicare: 1.45% of all earnings, with no limit. An Additional Medicare Tax of 0.9% applies to earnings over $200,000 (Single) or $250,000 (Married Jointly). This funds health insurance for people age 65 or older.
Strategies to Increase Your Take-Home Pay
While taxes are mandatory, there are legal ways to reduce your taxable income and potentially increase your net pay. By taking advantage of pre-tax deductions and credits, you can lower your overall tax burden and keep more of your hard-earned money.
Pre-Tax Deductions
Contributions to a 401(k), 403(b), or traditional IRA reduce your taxable income for the year. This lowers the amount of income subject to federal and state taxes. For example, if you earn $60,000 and contribute $5,000 to a 401(k), you are only taxed on $55,000. This can result in significant tax savings, especially if you are in a higher tax bracket.
Flexible Spending Accounts (FSA) and HSAs
Using an FSA for healthcare or dependent care, or an HSA (Health Savings Account) if you have a high-deductible health plan, allows you to pay for eligible expenses with pre-tax dollars. This means you are using money that hasn't been taxed to pay for medical bills or childcare, effectively giving you a discount equal to your tax rate.
Commuter Benefits
In New York, many employers offer pre-tax commuter benefits for transit passes and parking. This can save you a significant amount on taxes if you commute to work. By paying for your MetroCard, OMNY, or LIRR ticket with pre-tax dollars, you reduce your taxable income and save money on every commute. Check with your HR department to see if your company offers this valuable benefit.
For more information on federal tax brackets and standard deductions, you can visit the Internal Revenue Service (IRS) website. To explore other state tax calculators, visit our State Specific Paychecks category.
Frequently Asked Questions
Disclaimer: This calculator is for estimation purposes only. Tax laws are subject to change, and individual circumstances vary. For precise tax advice, please consult with a qualified tax professional or refer to the New York State Department of Taxation and Finance.